ASIA & OCEANIA
Despite a downturn in VIP revenue, Te Star posted strong revenues for the half year to December due to ‘freakishly good win rates’
AUSTRALIA CASINO OPERATIONS Lucky Win Rates Protect Star from VIP play
TONGA – Confusion reigns in the Polynesian sovereign state of Tonga over whether the government has issued its first gaming licence or not. Red Warrior Entertainment, the ‘world’s first, private, Native American-owned international casino company’ issued a press release saying it had been granted a license from the Government of Tonga. The Exclusive National Master Gaming License would be the first of its kind issued from Tonga and covers all Class I, II & III Gaming.
A Class III gaming licence would permit the holder to run horse racing, lotteries and casino games, such as baccarat and blackjack, roulette, craps and slot machines. However the Tongan government has since said the license issued to Red Warrior Entertainment (RWE) would not allow them to operate casino gaming or gambling in the Kingdom. The Ministry of Customs and Revenue CEO Kulu
‘Anisi Bloomfield revealed the licence issued was for the foreign investor to build a hotel and an
‘airport facility.’
He said the license ‘was approved on tourism grounds and casino gaming is prohibited in Tonga.’ Tonga’s Chief Secretary and Secretary to Cabinet Dr Palenitina Langa’oi confirmed that the cabinet ‘did not pass any resolution to allow the Red Warrior Entertainment to build a casino facility in Tonga.’ In its press release, Dr. Ronald D. Pate, Chickasaw, Principal of the Company and Chief Executive Officer of Red Warrior Entertainment, said: “Red Warrior Entertainment, LLC continues to improve its Casino Resort government licenses in multiple nations. The licence has created optimistic financing opportunities. Red Warrior’s growth in branded Casino Resorts is balanced against its emerging growth in Casino Management Service opportunities. It is remarkable to note Red Warrior Entertainment’s license holding improvement in its Gaming division during the first quarter of 2017. Red Warrior is nearly finished rolling out several strategic business efforts in the Caribbean, South Pacific, Africa, Asia, and The Mediterranean.”
CHINA –Macau operator Galaxy Entertainment has appointed Scott Kreeger, formerly the President and CEO of SLS Las Vegas to oversee the development of Galaxy Macau’s Phase 4 expansion.
Mr. Kreeger will work under former Station Casinos executive Kevin Kelley, who is now COO of Galaxy Entertainment. Mr. Kreeger left SLS Las Vegas on Dec. 31, after spending more than two years at the resort. He has experience working at Revel in Atlantic City, as well as 20 years working with MGM Resorts International and Station Casinos.
P32 NEWSWIRE / INTERACTIVE /
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Australian operator Star Entertainment has reported that its VIP gaming revenue was ‘impacted by the Crown Resorts detentions’ in China as they dropped by 22 per cent in the second half of the year.
Despite the VIP downturn, Te Star still posted strong revenue for the half year to December due to what Managing Director and Chief Executive Officer, Matt Bekier described as ‘freakishly good’ win rates against the VIP gamblers that did turn up.
Te company stated: “International VIP Rebate business front money was up 4.4 per cent with turnover of $20.8bn down 11.9 per cent. Turnover was impacted by the high win rate of 1.62 per cent in the half which resulted in a lower turn of 12.2 times as well as the uncertainty created following the detention of Crown Resorts employees in China in October 2016. [VIP] turnover in November and December 2016 was down 27 per cent.”
Rival operator Crown Resorts had 18 of its employees arrested for allegedly promoting
gambling junkets in China. Mr. Bekier said that Star would proceed with caution when it came to marketing to Chinese high rollers.
“We obviously want to be cautious because we don’t have all the facts on the table now,” he said. “At this point we are not taking any risks. We are executing against our strategy of diversifying our international revenues, including the south-east Asia VIP and Asian premium mass market. Overall the group’s revenue increased 11 per cent to $1.23bn for the half with profit up more than 135 per cent to $141.8m, due to a near doubling in Te Star’s win rate against its VIP gamblers from 0.88 per cent to 1.62 per cent.
Mr. Bekier said: “Te improving momentum of our Sydney property into early 2H FY2017 is pleasing, as customers respond to the upgraded offerings with the completion of major capital works. Te investment in gaming and non- gaming offerings advances our strategy to deliver a differentiated value proposition based on our brand, renewed loyalty program, guest satisfaction and staff engagement.”
Japan Macau
Macau Legend to open Legend Palace Hotel Macau Legend Development has said it will open Legend Palace Hotel, its new casino hotel Fisherman’s Wharf district before the end of February.
It has earmarked February 27 as the opening date for the venue that will include 66 gaming tables and 95 slot machines.
Macau Legend was given the green light to operate 15 new gaming tables, meaning it is likely to relocate the rest from either Pharaoh’s Palace Casino inside Te Landmark Macau hotel, which has 82 tables or from the Babylon Casino Macau which has 52 tables.
Co-Chairman, Executive Director and Chief Executive Officer of Macau Legend, Mr. David Chow, said: “We intend to expand New Legend, our self- run VIP operation, into this new hotel. With the increasing focus in Macau Fisherman’s Wharf, it makes commercial sense for the proposed disposal of Te Landmark Macau (including the casino facilities), and to focus more on the new hotels, casinos and other tourist related facilities at Macau Fisherman’s Wharf.”
Melco Crown Entertainment CEO, Lawrence Ho, has declared that there’s no limit on how much the company is prepared to invest to win the chance to build a casino resort in Japan. “Tis opportunity is priceless and we’ll spend whatever it takes to win,” said Mr. Ho said to an investors briefing in Tokyo. Mr. Ho said the investment amount will depend on the host city, and his top choice for a casino resort is in the city of Osaka, where Melco has already prepared the groundwork.
Ho’s comments followed those of fellow casino tycoon Sheldon Adelson, who declared Japan as the ultimate business opportunity for his Las Vegas Sands Corp., and where he could spend as much as $10billion building an integrated resort. Japan legalized casinos in December, drawing the interest of global gaming operators to a market CLSA predicts could be worth as much as $25 billion.
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