MGM Mirage has hired five banks to help it raise money for a Hong Kong initial public offering of part of the company’s Macau operations. The company named BNP Paribas, Bank of America-Merrill Lynch, HSBC, JP Morgan and Morgan Stanley as the preferred partners in the plan. The IPO is expected to be completed in the second quarter of 2010 and raise more than $500 mil- lion. It follows similar successful public offerings in 2009 by SJM, Las Vegas Sands and Wynn Resorts. Estonia- based casino and online gaming operator Olympic Entertainment Group has agreed with lender Swedbank to a change in terms for its existing €17.6 million loan. The current floating interest rate will change to a fixed interest rate 5.45 percent. OEG will make a premature repayment of €6 million. Final term of the loan, December 25, 2013, does not change.
Entertainment is increasing its sale of new debt by 50 percent to $750 million, and also is offering a 13 per- cent yield on the notes, which will come due in 2018. The terms of the sale are not yet in place, though the company said the funds from the sale will go toward paying down debt due in 2011 and repaying loans to the company’s banks. Clark County, Nevada’s largest taxpayers lost $12.5 billion in combined appraised property value in 2010. Only MGM Mirage’s appraised value increased, due to the addition of CityCenter to the rolls.
Planet Hollywood on the Las
Vegas Strip has gained a new owner but is losing two of its nightclubs. The Privé and Living Room clubs have lost their leases in the resort. Privé owes Planet Hollywood more than $300,000 in back rent and other expenses, and decided to reject its lease in the terms of its bankruptcy. The Nova Scotia Gaming Corp. pre- dicts that Casino Nova Scotia in Halifax will see a decline in 2010-11 due to a gaming complex slated to open in Moncton in May. Moncton is expected to attract potential visitors from Nova Scotia, Prince Edward Island and New Brunswick. Site work, including dem- olition, has begun at the location of the old Delphi auto parts plant in Columbus, Ohio, where Penn National Gaming Inc. hopes to build its Hollywood Casino Columbus if voters in May approve moving the location from the city’s Arena District to the defunct factory. Columbus and Franklin Township, where the land is actually located, are moving closer to an agreement on allowing the land to change jurisdictions, so it will be inside of Columbus when the casino opens in 2012. Bally Technologies has sold its Rainbow Casino in
May 11-13: Global iGaming Summit & Expo
(GIGSE), Montreal, Canada. Produced by Clarion Gaming. For more information, visit www.gigse.com
May 24-25: East Coast Gaming Congress,
Atlantic City Convention Center. Produced by Spectrum Gaming Group, Cooper Levenson, SOSH Architects and Chapdelaine Credit Partners. For more information, visit www.east- coastgamingcongress.com
or email Donna Vecere at email@example.com
Vicksburg, Mississippi to Isle of Capri Casinos Inc. for $80 million. Bally, which once the purchases closes on June 30 will own no casinos, says it will concentrate on developing gaming technology. The casino has 831 slots, 10 gaming tables and a hotel. Isle of Capri opened the first casino in Vicksburg in 1993. The Maryland legislature has passed a bill lowering the pro- posed tax rate for a slot casino at Rocky Gap Lodge and state park. The bill reduces the total effective gaming tax from 67 percent to 64.5 percent, and allows the pur- chase price of the lodge to be covered as part of the license fee. The estimated cost of the run-down lodge is $25 million. The measure is designed to entice bidders to seek the license, which has seen no suitors since Empire Resorts, whose application was rejected when it failed to deliver the up-front license fee. There are cur- rently no bidders for the Baltimore city license either. Critics cite the suffocating tax rate as the main culprit. A permit was issued last month for new construction
at the Palace Casino in Biloxi, Mississippi. The $36 mil- lion expansion is intended to restore the casino to its for- mer condition before Hurricane Katrina struck the region. Construction will be done in phases over the next 20 months. The Palace will remain open. The
Pennsylvania Gaming Control Board approved table-
game petitions of three casinos last month, approving tables for Sands Casino Resort Bethlehem, Mount Airy Casino Resort and Hollywood Casino at Penn National Race Course. The approvals bring the total to five casi- nos that have cleared the first hurdle of table game approval. Tables were approved in March for Mohegan Sun at Pocono Downs and the Parx Casino at Philadelphia Park Racetrack, and the baord will consid- er Harrah’s Chester at its meeting in May. Officials of Las Vegas-based Riviera Holdings Corporation, while acknowledging that the company is in talks with credi- tors about restructuring its debt, refused to respond to press inquiries last month concerning reports that the operator is about to be acquired by Starwood Capital Group LLC through a prepackaged bankruptcy. Starwood chief Barry Sternlicht was reported to be inter- ested in taking over Riviera, whose assets include the Riviera hotel-casino on the Las Vegas Strip and the Riviera Blackhawk in Colorado. However, a statement from Riviera said only that the company will consider Chapter 11 bankruptcy if it is unable to restructure its debt. The statement did not mention the reported talks with Starwood.
May 25-28: iGaming Super Show, PVA
Letnany Exhibition Centre, Prague, Czech Republic. Produced by iGaming Business. For more information, visit www.igamingsuper- show.com
, email firstname.lastname@example.org
or call +44 (0) 207 954 3480.
June 9-10: G2E Asia, Venetian Macau.
Produced by American Gaming Association and Reed Exhibitions. For more information, visit www.g2easia.com
or email email@example.com
Global Gaming Business • May 2010
THEY SAID IT...
we questioned has been into the casino yet, due to a casino levy of S$100 imposed by the government. Only few of our overpaid Singapore colleagues have ventured into the casino, for the same reason.
“We are surprised that not a single taxi driver
—Loke Foong Wai, a Singapore-based gaming analyst for Credit Suisse, on the fee imposed on Singapore citizens and permanent residents to enter the two casinos, Resorts World Sentosa and Marina Bay Sands
Greenetrack closes, it will put us back in it. “We’ve always tried to find ways out of poverty. If
—Greene County, Alabama, CommissionerWilliam Johnson, on fears that Governor Bob Riley will try to close the community’s bingo casino
without much debt and a very healthy capital structure. Few gaming companies are currently in that position.
“It’s a great time to be a gaming company
—Ivanka Trump, on the Trumps’ return to Atlantic City’s casino industry after a bankruptcy reorganization
c“A lot of people leave Brazil to play abroad. They
ould spend their money here. It would be a way to develop poor regions in the northeast.
—Rep. Silvio Costa of Brazil, speaking in favor of adding a casino amendment to the anticipated vote on the latest bingo bill
h“We have a business model problem. We don’t ave a news problem.
—Google CEO Eric Schmidt, encouraging newspapers to change to keep up with the times; the Philadelphia Inquirer just announced it will offer legal online sports bets
t“When and if an online gambling bill is passed, he companies that have established U.S. online
gaming brands, operations and a pre-existing player base will be the winners.
CEO and former Harrah’s executive Kevin Flood, commenting that operators are positioning themselves for the potential legalization of internet gaming in the U.S.
“Slightly down is the new ‘up’ these days.
—Bill Lomax, president of the Native American Finance Officers Association, on a 2 percent annual decline in tribal gaming revenues
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