It’s No Go Ho for MGM Resorts. Maybe Vietnam will be Asia’s first big bust gambling community things are certainly not looking cheery for the MGM Ho Tram Strip these days ( just for want of the ‘p’ are the jokes on that name not endless).
According to a recent securities and exchange Commission (SEC) filing, real-money-casino.club MGM Resorts International exercised its directly to end their agreement to manage the house based on a not enough pre-opening milestones having been accomplished as of March 1, 2013. The task is partially owned by Las Vegas-based Pinnacle Entertainment.
The story began in August of 2011, with Pinnacle investing in a $95 million stake in Asian Coast Development, with Harbinger Capital Partners being almost all owner. Pinnacle was a 23 per cent stakeholder; apparently, that wasn’t a harbinger of good things to come.
By 2012, Pinnacle had already written off $25 million on the investment, caused by delays. A prominent gaming protection analyst, Chad Beynon of Macquarie Securities, told investors he expected that Pinnacle could well take even more write-offs on the Vietnamese property.
‘The undeniable fact that MGM Hospitality will not be associated with this project will significantly detract from the success for the resort/casino,’ said Beynon in a report that is recent. ‘MGM maybe not only provided an international brand name, but it absolutely was also a significant the main design and vision associated with the first phase. It remains unclear who’ll actually manage the phase that is first of project now.’
Asian Coast Development, Ltd, the developer for the Ho Tram Strip integrated resort complex in Vietnam, is currently within the first of five planned phases for the property. The plan is for an integrated group of resorts to be built on more than 400 acres of land and about 1 1/4 kilometers of beachfront in Ho Tram, a seaside resort known for more than a century as a wellness sanitorium for treatment of many different diseases having its mild weather and sea water. Along side its sister beach city Ho Coc ( we just report these things, folks), the location is poised to become a resort that is major for the region.
The area is also home to a rainforest that is 27-acre was designated as a nature reserve in 1975. Although the majority of the more expensive wildlife was either poached, killed or moved (numerous of the area’s elephants finished up in Thailand), many birds that are wild monkeys nevertheless stay within the rainforest.
Can a witness is got by me? Adelson going Back to Court in Breach Case
Forget all the TV shows about how are you affected in Las Vegas casinos; they want to produce a show about what continues behind the scenes. The drama is unending; just take the actual situation of one-time Las Vegas Sands Corp. consultant Richard Suen, who’s coming back to court in with Sands chairman and CEO Sheldon Adelson already served to appear as the defense’s lead witness april.
Offered with Bodyguards
Adelson, whom perhaps understandably goes everywhere with bodyguards, was apparently served papers by a process server when he emerged from another deposition on September 6 of last year. Actually, it turns out the subpoena was actually handed to their lawyer, who was simply needless to say with him in court; that is the power of having a good lawyer.
Breach of Contract Alleged
It all dates back to Suen’s allegations he was responsible for Sands’ now really entré that is lucrative into the Macau gaming market back 2004. He claims to have arranged meetings with key Chinese federal government officials that paved the way for the deal (we can just see Illinois Gov. Pat Quinn shaking his head in disgust here). In fact, former Sands president Bill Weidner brought Suen on in 2001 for a $5 million cost, plus 2% of any casino revenue if their ‘work,’ (i.e., connections) led to securing a video gaming permit. See, that’s what we like about Asian politics: there’s none of this Victorian coyness about political bribes or any of the rot that is silly.
Looks just like the presssing issue is how you define ‘work;’ Las Vegas Sands later contended that Suen never really did any. In a trial that is nearly month-long in 2008, Suen was granted $43.8 million, therefore apparently the jury thought he did some anyhow; that amount ended up being a cool $60 million once interest had been tacked on.
However, that verdict had been overturned in 2010 by the Nevada Supreme Court whenever it uncovered expected errors by the trial judge. While some thought a settlement was finally reached, evidently not, as the case is now heading towards Round Two in that boxing band known as Clark County District Court. The new trial date is set for April 3, following jury selection and allowing for the Sands CEO to keep his scheduled Passover trip to Israel from March 26 through April 2.
China Embracing Capitalism, One Casino at a Time
It’s always the exact same story that is old these ex-Communist nations; the moment they get a style for the joys of wicked capitalism, all hell breaks loose and the communal fervor is displaced by all kinds of things that money can buy. Gambling is no exclusion, as proven by the slow and creep that is steady of onto, gasp, mainland Asia.
It’s Not Only Macau Anymore
All of it began, of course, with Chinese Special Administrative District Macau, now the revenue-producing gambling zone that is highest in the entire world (out-earning Vegas annually by double-digit billions); but now the area province of Hainan is joining the fray. The smallest and southernmost province of the People’s Republic of China (PRC), Hainan is now poised to end up being the gambling region that is newest for China’s betting-hungry population.
The recently shut-down Mangrove Tree Resorts Sanya Bay, is temporarily closed, you can bet your last yen that that won’t be the case for long although the first entrant into the Chinese gambling juggernaut. According to iGamiX managing partner Ben Lee, the ‘cashless’ casino (patrons were paid in certain form of benefits markers) was actually a test by Beijing authorities to see if locals would gamble closer to the home front than Macau (which gets its share of Chinese nationals of all income levels). Lee says that nine a lot more of the casinos that are cashless waiting to be unleashed now that the powers that be see this stuff offers a lot better than do-it-yourself furniture at Tarjay.
To Be Slowly Unfurled
Apparently some type of furor ensued once term leaked out about the Jesters Casino Bar at Mangrove Tree, resulting in the speedy shuttering; but we understand they’re just counting 5-4-3-2-1 before they reopen not just Jesters, but many more also. Not merely that, but in accordance with Lee, Beijing will ultimately turn these cashless casinos into real-money gambling joints, but he says that may happen in stages so since not to ‘dump the rest of the licenses on the market in a brief timeframe.’
Lee also says the gaming licenses will be restricted to ‘domestic’ companies, but with Caesars Entertainment and MGM Resorts establishing ( for the time being) non-gaming presences in Hainan with brand new luxury resorts, you can bet they are thinking differently. Most likely, they are both in the gambling company, perhaps not simply the hotel business. Back in September 2011, Caesars CEO Gary Loveman announced plans to create a $470-million 1,000 space luxury resort on Hainan called Caesars Palace Longmu Bay; the property is prepared for a 2014 opening that is grand. Meanwhile, the MGM Grand Sanya is already open for business and tourists that are wowing. We are guessing that, like so many casino properties around the globe, China will finally recruit Vegas-based operators to perform their casinos also, as let’s face it: nobody does it better.
Nevada Gaming Revenues Spiral Down for January
Simply whenever you think the news for Las Vegas is picking right on up with Genting’s announcement of the brand new massive Strip task on the old Stardust/Echelon site, bad news hits: an 18.7 per cent revenue tumble regarding the Strip for January 2013 compared to the same period of time year that is last. What’s going on??
New numbers just released by Nevada’s Gaming Control Board showed a 12.4 percent drop overall in the Silver State for January, with $909.2 million in video gaming revenues, which is a drop that is significant $1.038 billion just last year. For the Strip specifically, those numbers were $507 million, versus $623.5 million in January 2012.
Perhaps Not A delighted New Year…Yet
One reason for the drop that is big have one thing regarding the shifting lunar dates of this very profitable Chinese New Year for bringing in lots of big-money gamblers to Vegas. Whereas January 2012 encompassed the vacation last year, this present year, it dropped in February. Gambling dollars from high-end baccarat play, constantly a big house benefit game for casinos, thus were not since impressive as in the same time period in 2012, whenever Nevada had its first billion-dollar plus thirty days since the economy fell in the toilet there right back in September 2008.
Baccarat is Bread and Butter
Less than normal baccarat revenues were responsible for 85 percent of this downfall in January. Strip casinos pulled in $99.5 million through the game this year, that was a 50.8 percent downfall from 2012. Year actual amounts wagered at the game were naturally less as well, at $794.8 million, which was 48.9 percent lower than last. (That does, however, show a pretty nice edge for the home, regardless; no wonder casinos love this game.) At minimum the hold levels, meaning what the gambling enterprises got to keep versus what customers won back, was pretty steady with 2012; at 12.02 this year when compared with 12.47 in 2012.
Combined revenues Might be Snake Charmed month
Before you sob uncontrollably at the sadness of it all, examine these thoughts from Wells Fargo Securities gaming analyst Cameron McKnight, who addressed investors the other day: ‘We believe the January-February combined contrast will offer you a more meaningful look into annual growth,’ McKnight told the gathering.
Another analyst, Chad Beynon of Macquarie Securities, said that ‘management teams from Las Vegas Strip casino operators have actually boasted that the ‘Year for the Snake’ was a good one. The poor optical outcomes were significantly affected by the timing of the New Year that is chinese.’
Positive thing, that, or some of their jobs might have been rattled.