Packer sparks protests; Heads roll at Zynga

Just the prospect of a James Packer-owned casino was enough to spur a Buddhist-driven protest march in Sri Lanka. Packer’s Crown Resorts has concessions to develop three resort properties and the Sri Lanka government has been talking out of both sides of its mouth as to whether they’d  have gambling or not. The country already has gambling, albeit on a small scale. That could change. Between them, Sri Lankan entrepreneurs Ravi Wijeratne and Dhammika Perera have been granted five casino concessions. Whether they are successfully developed remains to be seen: Although the current government holds a two-thirds majority, opposition to casinos cuts across party lines.

Mind your own business. That’s the message from New Jersey lawmakers to the Adelson caucus on Capitol Hill, which would strip the Garden State of Internet gambling. senlesniakSaid state Sen. Raymond Lesniak (D, right), “Congress should leave us alone.” Slightly more expansively, state Sen. President Stephen Sweeney (D) added, “We have quickly become a national leader in the world of internet gambling, and we simply cannot afford to have all our hard work and effort undone by the whims of a few down in Washington.” A newly released McAfee report details the dangers of the black-market Internet gambling scene and ought to be mandatory reading for Sheldon Adelson‘s meddlesome Beltway minions. Meanwhile, New York state Sen. John Bonacic (R) is trying to lead the Empire State toward the promised land of Internet poker. A license would cost $10 million and revenues would be taxed at 15%.


This has to be a galling sight for Penn National Gaming.

Churchill Downs had its best quarter ever … and still lost $700,000. The company’s casino division was up 20%, propelled Oxford Casino, in Maine, and Miami Valley Gaming & Racing, in Ohio. However, the company’s Mississippi and Louisiana properties did not do so well. Also, much of the deficit can be attributed to heavy spending to legalize casinos in Kentucky. Churchill Downs development of an Internet-gambling platform also proved very cost-intensive.

For an extra $20 million, Lawrence Ho gains majority control of a casino project in Vladivostok. Once completed, it will be Russia‘s second-only operational casino. Ho’s partner, Oleg Drozdov, is in custody, which created a bit of a problem, one that Ho is solving by taking him out of the project. “The unexpected detention of Mr. Drozdov has created unforeseen financing constraints” read the official announcement. Drozdov still holds a 15% stake but Ho’s share has risen to 65%. The casino will be small by U.S. standards: 800 slot machines and 25 table games.

There’s been a huge managerial shakeup at Zynga, following a 36% decline in revenues. Company founder Mark Pincus is being kicked upstairs to the chairmanship and succeed by former Microsoft executive Don Mattrick. The latter promptly cleaned house, easing out executive vice president of games Steve Chiang and bringing in four new top executives. Advertising revenues were slightly up by hardly enough to offset losses of business in the game-revenue sector. “These organizational changes are critical to help us execute more nimbly against our strategic frame of grow and sustain, create new hits and drive efficiencies,” Mattrick said of the bloodbath.

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