Clouds over Macao

By David McKee ~ July 30th, 2014 @ 1:08 pm No Comments »

HotelLisboaForbesMuhammad Cohen has been reading the latest tea leaves from the world’s gambling capital and doesn’t like what he sees: a 1H14 revenue increase of 13% (“heady for anywhere but Macau“) but a sequential decline from 1Q to 2Q14 of 11%. VIP play has, as a percentage of the total, been on the decline for four quarters now. “Union Gaming analysts in Macau Grant Govertsen and Felicity Chiang attribute VIP softness to China’s anti-corruption campaign. The corruption investigation into China’s former internal security chief Zhou Yongkang, announced Wednesday, adds to the cautious mood among VIP players and promoters.”

Cohen concludes, however, that “the main factor may be simply that the VIP market has matured – all the big money mainland players that want
MarinaBay Sandsto come to Macau are already coming as frequently as they can, and increases will be more in line with China’s economic growth rather than double or triple that number in recent years.” The opening of new casinos on the Cotai Strip next year — which will require 32,000 new dealers and other employees could spark a mass exodus from existing casinos, with a too-small Macanese population to replace them.

Another problem is rival, overseas jurisdictions with Continued >>

Quote of the Day

By David McKee ~ July 30th, 2014 @ 12:48 pm No Comments »

Seal_of_New_York.svg“The initial proposal from the developers was that this is going to be a world-class destination resort. Now we all know no one is flying into East Greenbush or Rensselaer County to go gambling. This is not a resort area.” — Save East Greenbush activist Cara Benson on the downsizing of casino projects proposed for the Capital Region of New York State.

Argosy Sioux City: 2003-2014

By David McKee ~ July 30th, 2014 @ 11:01 am No Comments »

Better get to Argosy Sioux City by 4:59 p.m. if you want to lay down one final bet. The casino will be closing permanently at 5 p.m., in Argosy Bellecompliance with an Iowa Supreme Court order. The Supremes declined to hear Penn National Gaming‘s appeal of an Iowa Racing & Gaming Commission edict that the casino — which was in noncompliance with a law requiring a local nonprofit partner — be closed. So the slot and roulette wheels will stop spinning, and the dice will no longer bounce across the green felt.

Penn is being pretty “george” to its employees, who will obtain $464,000 in bonuses and $1.7 million in severance pay: “Hourly workers employed for at least a year are eligible for one week’s pay for every year of service, penn-national-gamingup to 52 weeks, while salaried employees can receive two weeks’ pay for every year, according to the court documents.” Since the workforce is becoming unemployed because their workplace went out of business, they’ll also qualify for 39 weeks unemployment from the state. The top 10 “key employees” will split a pot of $286,635 in “close bonuses.” (What a concept: Close a business, collect a bonus!) Continued >>

Wynn: Most happy fella

By David McKee ~ July 30th, 2014 @ 10:15 am No Comments »

We’ve gotten to inured to headlines that say such-and-such a quarter was “rescued by Macao” that I did a double-take today. The lead item on a newsletter was “Wynn Resorts Q2 results boosted by Las Vegas.” It’s Steve-Wynn-201198-1-402nice that the Strip is something other than an afterthought, even if Steve Wynn greeted the news with apparent ingratitude. Atypical Las Vegas Strip levels of staying and dining (up 12.5% from Q213) helped propel earnings 57% upward. “I never had a $50 million in July [in Las Vegas] in my business career, 40 odd years in gaming,” said an apparently astonished Wynn. In spite of all this success, Wynn still managed to miss Wall Street‘s demanding revenue expectations, even if profit overshot analysts’ target. The culprit was a soft June in Macao, where World Cup betting fever sapped casino revenues. Even so, Wynn’s Macanese casinos managed a small quarterly increase of 3%.

The oldest part of Wynn Macau is currently seeing a $60 million renovation, to give the company Continued >>

Further Reading

Clouds over Macao

Quote of the Day

Argosy Sioux City: 2003-2014

Wynn: Most happy fella

Wall Street: Viva Las Vegas

Flake-ing out over tribal gambling

Hawkeye State showdown

Would you let this man rob your casino?

Enormous changes at the last minute

Pinnacle pestered; Penn profits; Pokies pilloried

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