ASIA PACIFIC
July 1, 2010
A DUTCH TOWN WITH CASINOS...IN JAPAN
A Dutch windmill amid tulips
AUSTRALIAN ADVOCATES WANT MORE CURBS ON MACHINE GAMBLING
Gambling addiction
continues to be the prime focus of advocates who want to further curtail
Australia’s lucrative machine gambling industry.
It is estimated there are 300,000 problem gamblers in Australia,
equal to the population of the capital of Canberra, and a gambling reform
summit was convened last month in Sydney to look at ways to bring down the
country’s high rates of addiction.
The gathering, covered by BBC News, heard repeated calls for the
government to do more. The issue was characterized as a “social emergency,”
with attendees zeroing in on slot machines, or “pokies,” as they’re known
locally, as the leading culprit.
Senator Nick Xenophon says immediate action is needed and the
industry “needs to realise that its time is up”.
“It is not tenable for a situation where 50 percent of poker
machine losses come from problem gamblers, and something has to
change.”
Gambling in Australia generates about A$18 billion annually. More
than A$9 billion is wagered on slots.
A government report on the social consequences is expected to be
released in the next few months.
MACAU ON A ROLL; CREDIT TAPS FLOWING
June was looking
likely to duplicate May’s scorching revenue numbers in Macau, with win from the
Chinese gambling enclave’s 33 casinos estimated to be up 70 percent over last
year.
Deutsche Bank analyst Karen Tang has revised her forecast for the
balance of 2010, stating in a recent report that gambling revenue could
increase 50 percent this year, compared with her earlier forecast of 35
percent.
“Macau will remain strong in the near team,” she
said.
CLSA gaming analyst Aaron Fischer said he expects Macau tourism to
increase about 10 percent annually with construction of several stalled casino
developments being restarted.
Gross gambling revenue in May jumped 98 percent from a year
earlier to hit a record high of more than MOP17 billion (US$2.12 billion),
surpassing April’s previous record of MOP14.1 billion.
Tang attributes the results to an increase in credit funneled
through the junket operators who control the traffic in wealthy baccarat
players from the Chinese mainland. This high-roller trade accounts for about
three-quarters of GGR.
Total revenue for the first five months of 2010 rose to about
MOP72 billion (US$8.96 billion) from MOP43 billion over the same period in
2009, according to news reports. Last year, bettors wagered a record MOP119
billion, 9.7 percent more than in 2008.
Stanley Ho’s SJM Holdings continued to lead the market with a May
revenue share of slightly above 32 percent, followed by Sands China, a
subsidiary of Las Vegas Sands, with just under 20 percent, and Steve Wynn’s
Wynn Macau, with nearly 16 percent. Melco Crown Entertainment garnered about 14
percent, Galaxy Entertainment Group around 11 percent and MGM Macau about 7
percent.
Not surprisingly, industry leaders are bullish on the potential
region-wide. Observers expect more and more people to enter the ranks of Asia’s
wealthy and middle classes in the wake of the region’s rebound from the
economic slump, and that will drive regional travel, including gambling. About
two-thirds of attendees polled at last month’s Global Gaming Expo Asia believe
the region’s gambling markets could overtake the United States in as little as
three years. Those surveyed said Macau would remain Asia’s dominant market,
while some expected Japan, if it legalizes casinos, to steal the No. 2 spot
from Singapore.
In 2009, Macau’s took in $14.5 billion. The entire U.S. market
took in $30.7 billion.
SANDS REACHES DEAL FOR PLAYBOY CLUB
Sands China and
Playboy Enterprises have entered a licensing agreement that will bring two
Playboy clubs to the company’s properties in Macau.
The first is set to launch by year’s end, said Sands China, the
publicly traded entity that operates the Macau gambling resorts of Las Vegas
Sands. The 12,000-square-foot Playboy Club Macao will be located at the top of
Sands Macao with a range of attractions, including private entertainment and
media rooms, live entertainment, private gambling areas and high-limit gambling
for the public.
The second phase of the partnership, scheduled to open early in
2012, will see a 30,000-square-foot Playboy Mansion Macao open on developable
land Sands China controls as part of its Cotai Strip resort complex. This venue
will include bars, lounges, a nightclub, gambling and retail.
“Playboy’s entrance into Macau is a welcome addition to Sands
China’s offering for the region, further cementing our promise of providing
Asia with unprecedented entertainment and integrated resort amenities for all
ages and palates,” said Sands China CEO Steve Jacobs.
Playboy Enterprises Chief Executive Scott Flanders called it a
“great opportunity”.
“We look forward to continued expansion of our location-based
entertainment business around the world.”
HARRAH’S ON MACAU: ‘PATIENCE’ THE WORD
br>
Speculation has
been rife about whether the stalled Studio City resort project could provide an
opportunity for a new player to enter Macau’s red-hot gambling
market.
That player could be Las Vegas-based casino giant Harrah’s
Entertainment.
Michael Chen, president of the company’s Asia division, said Macau
remains a top priority even though the company doesn’t have a gambling presence
there — Harrah’s operates a golf course in Macau.
Chen declined to comment on whether Harrah’s has held discussions
with the Macau government about taking part in the troubled Studio City
project, which is being developed by eSun Holdings but is mired in legal
and financial difficulties.
Speaking at last month’s G2E Asia, Chen emphasized
“patience”.
“The government will make it clear when they want new entrants,”
he said..
Did you enjoy this article? Click here to subscribe to the magazine.
