Case Bets

Any fears of antitrust litigation in the Scientific Games/Bally Technologies merger were put to rest yesterday when the two
companies announced they had cleared the Hart-Scott-Rodino Antitrust Improvements Act waiting period ahead of schedule. This is Bally_logo1hardly equal to leaping the final hurdle but a high bar has been cleared. “The transaction remains subject to approval by Bally’s stockholders, receipt of certain gaming regulatory approvals and other customary conditions,” wrote Bally spokesman Mike Trask. “The news is not a surprise as we didn’t expect any major antitrust concerns given the increasing number of competitors in the space,” Union Gaming Group analyst Robert Shore told investors.

* Convicted felon Vaughan Perry hit the wrong sort of jackpot this week. He was hit with 139 indictments for illegal gambling at Horseshoe Cleveland Casino. Regulators say they’ve got the videotape that shows Perry beating the house at blackjack through untoward means. The alleged cheating won Perry $8,240, which works out to $59.28 per indictment — not a good return on investment.

* Galaxy Entertainment employees may receive equity in the company as it looks to retain current talent and recruit 8,000 new Galaxy Cotai 2
galaxyworldMacaoRenderingworkers for the $2.6 billion Phase II of Galaxy Macau. It needs many more workers to staff up last year’s $420 million purchase, Grand Waldo. However, this hardly comes as bad news for Galaxy. It reported cash flow for the last quarter of $452 million, beating analyst estimates. Strong mass-market business offset a slowdown in VIP play.

Other than Melco Crown Entertainment, no other casino concessionaire exceeded revenue expectations last quarter. Melco’s incentivizing employees and job-seekers with the prospect of management training. Like Las Vegas Sands, both companies are leaning on Vegas-style amenities to lure mass-market players, too. “The evolution of the market to mass gaming is likely to continue, supported by longer-term drivers,” a formal Galaxy statement read, “such as improved transportation infrastructure and a rapidly growing Chinese middle class looking to broaden its horizons through increased travel.”

* Genting Group‘s Resorts World Sentosa got a prestigious visitor this week, as more Japanese officials show an interest in the Singapore model of casino development.

* In acknowledgement of the closing of Pawn Shop Live!, a show that could never find its concept, here’s another Pawn Stars riff, one that we wish really was on the History Channel. I mean, with Bryan Cranston how can you go wrong?

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