ASIA & OCEANIA
FBI Raids Saipan Governor's Office Trouble is continuing to mount for Saipan’s Imperial Palace with FBI agents
raiding the governor of Saipan’s home and office in connection with the casino
Saipan’s Governor Ralph Torres was questioned as well as phones and computers seized for analysis
SAIPAN CASINO OPERATIONS
JAPAN – Wynn Resorts has warned there is a ceiling to its investment in a Japanese IR. Wynn CEO Matt Maddox said: “We are going to pursue Japan with vigour but we will not pursue it if it does not make financial sense. We’re going to be very disciplined in terms of how any structure is put together, what the costs are going to be and what the return profile is going to be. We like the Japanese market, we think that it will be a very high revenue market, but we’re focused on making sure it will be something that our shareholders will also like.” He believes the award of the three IRs in Japan will take longer than expected with late 2020 a likely date for the conclusion of the race.
“I still believe that this is going to be a longer process than a lot of people are anticipating,” he said of Wynn’s Japan efforts. We have people on the ground. We’re building up our team. And we’re going to make sure that if there is something that’s right for Wynn that it is financially sound, that the project is something that will change the company and we’re with partners that share our same values.”
Mr Maddox was speaking to investors as Wynn delivered its Q3 results when ‘abnormally low hold’ wreaked havoc on the company’s results.
“In the third quarter in Macau we generated $301m of EBITDA,” he explained. “However we had a hold impact from our direct business of approximately $22m. VIP continued to compress but I believe that is quite temporary. Mass continued to grow. We maintained our share in mass market and slots at 14 per cent. The investments we have made position us well to compete in any market environment, as evidenced by record mass table win in the quarter. Our strategy at Wynn Las Vegas continues to bear fruit as we increased market share in our domestic gaming business and drove nearly four per cent year-on-year growth in RevPAR. During our first full quarter of operations at Encore Boston Harbor, we have been particularly pleased with the strength of our table games business and we are encouraged by the opportunity to drive growth at the property over the next several years."
Operating revenues were $1.65bn for the third quarter of 2019, a fall of 3.6 per cent, or $61.3m, from $1.71bn for the third quarter of 2018. Operating revenues decreased $132.4m and $105.3m at Wynn Palace and Wynn Macau, respectively, from the third quarter of 2018, and were relatively flat at the company’s Las Vegas operations. The decrease in operating revenues at Wynn Palace and Wynn Macau was partially offset by operating revenues from Encore Boston Harbor of $175.8m.
P30 NEWSWIRE / INTERACTIVE / MARKET DATA
FBI agents have raided the home and office of Saipan’s Governor, as well those linked to Imperial Pacific International. Saipan’s Governor Ralph Torres was questioned as well as phones and computers being analysed. Governor Torres said: “In every opportunity I have been given to serve this community, I have raised my hand and have sworn an oath to uphold the constitution. A part of this oath is to respect our system of laws and to allow these processes to take their course.
“As information is provided, I will continue to do what I have always done, which is to support the goals and aspirations of the people I serve and to remain worthy of this privilege that has been given to me. For this reason, I look forward to continuing to do this important work with the utmost integrity.”
Lieutenant Governor Arnold Palacios added: “We have provided them with all the information and access that they have asked for, with the intent of being completely transparent and helpful in the investigation,” he said, adding that the FBI had made Torres aware of the raids beforehand.
Imperial Pacific stated: “Firstly, our companies have nothing to hide and will cooperate with law enforcement authorities. Secondly, we want assure the people of the CNMI that we continue to be law abiding and good corporate citizens who are proud and privileged to be members of the CNMI. Finally, we want assure our employees, their families, vendors, patrons and residents alike that our companies are intent on succeeding and making the CNMI the jewel of the Pacific for our emerging gaming industry.”
Australia
Sands, MGM and Wynn 'level playing field' in re-licensing process
Macau
Macau’s three US casino licence holders can expect a ‘level playing field’ when it comes to the relicensing process in 2022, according to ratings agency Fitch. Fitch believes that Sands China, MGM China and Wynn Macau will be given pragmatic approach from new Chief Executive, Ho Iat Seng but also believes there is still a chance of a seventh licence holder being granted.
Fitch said: “We expect the US- based concession holders to be treated on level playing field with their Asian counterparts given the large amount of foreign investment, positive
local sentiment on the concession holders (jobs, local investment), and adverse impact an effective nationalization of gaming could have on broader foreign investment in China and its special administrative regions (SARs). Te Chief Executive does have executive power to extend all concessions for five years, though we put a low probability on this occurring."
“Tat said, the risk of a seventh concessionaire, incremental investment and changes to the tax rate (albeit less likely) still remain, but are manageable in our opinion. Nobody was optimistic on the segment heading into 2020 and felt additional downside risk remains should US-China trade tensions escalate and further impact Chinese business and real estate owners.”
Paul Fletcher, Australia’s Communications Minister, has announced that the federal government will soon begin to block illegal overseas gambling websites under the enhanced powers of the Australian Communications and Media Authority (ACMA). Mr. Fletcher confirmed that the ACMA “will be moving quickly to block at least one website in the short term and it will be actively exercising its powers in response to complaints.”
Online sites such as Curacao- based Emu Casino and FairGo are specifically branded to appeal to the Australian market and are expected to be among the first to be blocked under the new policy. Mr. Fletcher explained the rationale behind the decision: “Tere’s quite a regular stream of complaints from Australians who place bets on these sites and when they win, they find it very difficult to collect their money. So, these sites will take real money, but they won’t pay out. Tey’re not licensed or regulated in Australia. Tat means they don’t have consumer safeguards in place, it also means they’re not paying any tax.”
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