It’s No Go Ho for MGM Resorts. Maybe Vietnam is going to 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 a ‘p’ are the jokes on that name not endless).
According to a recent securities and exchange Commission (SEC) filing, MGM Resorts International exercised its straight to end their agreement to manage the property based on a not enough pre-opening milestones having been achieved as of March 1, 2013. The project is partially owned by Las Vegas-based Pinnacle Entertainment.
The tale began in August of 2011, with Pinnacle purchasing a $95 million stake in Asian Coast Development, with Harbinger Capital Partners being almost all owner. Pinnacle had been a 23 percent stakeholder; apparently, that was not a harbinger of good things to come.
By 2012, Pinnacle had already written off $25 million on their investment, due to delays. A prominent gaming safety analyst, Chad Beynon of Macquarie Securities, told investors he expected that Pinnacle could well simply take even more write-offs on the property that is vietnamese.
‘The fact that MGM Hospitality will not be associated with this specific project will significantly detract from the success associated with the resort/casino,’ stated Beynon in a recent report. ‘MGM perhaps not only provided a global brand title, but it had been also a significant part of the design and vision associated with phase that is first. It remains not clear who will actually manage the phase that is first of project now.’
Asian Coast Development, Ltd, the developer of the Ho Tram Strip integrated resort complex in Vietnam, is presently into the first of five planned stages for the property. The plan is for a group that is integrated of to be built on significantly more than 400 acres of land and about 1 1/4 miles of beachfront in Ho Tram, a seaside resort known for over a century as a health sanitorium for treatment of a variety of diseases having its mild weather and sea water. Along with its sis beach city Ho Coc ( we just report these things, folks), the location is poised to become a resort that is major for the area.
The area is also home to a rainforest that is 27-acre was designated as a nature reserve in 1975. Although most of the more expensive wildlife ended up being either poached, killed or moved (numerous of the region’s elephants finished up in Thailand), many wild wild birds and monkeys nevertheless stay in the rainforest.
Can a witness is got by me? Adelson going back once again to Court in Breach Case
Forget all the shows about what goes on in Vegas casinos; they want in order to make a series about what goes on behind the scenes. The drama is unending; just take the actual situation of one-time Las Vegas Sands Corp. consultant Richard Suen, who is returning to court in April with Sands chairman and CEO Sheldon Adelson already served to appear once the defense’s lead witness.
Served with Bodyguards
Adelson, whom perhaps understandably goes every where with bodyguards, was apparently served papers by a procedure server as he emerged from another deposition on 6 of last year september. Actually, it turns away the subpoena was actually handed to his lawyer, who was simply needless to say with him in court; that is the effectiveness of having a good attorney.
Breach of Contract Alleged
It all dates back in to Suen’s allegations that he was responsible for Sands’ now extremely 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 just how for the deal (we can just see Illinois Gov. Pat Quinn shaking his mind in disgust here). In reality, previous Sands president Bill Weidner brought Suen on in 2001 for a $5 million fee, plus 2% of any casino revenue if their ‘work,’ (i.e., connections) led to securing a gaming license. See, that is what we like about Asian politics: there’s none with this Victorian coyness about political bribes or any of that rot that is silly.
Looks just like the issue is how you determine ‘work;’ Las Vegas Sands later contended that Suen never ever actually did any. In a nearly month-long trial right back in 2008, Suen ended up being awarded $43.8 million, so apparently the jury thought he did some anyhow; that amount ended up being a very good $60 million once interest had been tacked on.
However, that verdict was overturned this year by the Nevada Supreme Court when it uncovered expected mistakes by the test judge. While some thought a settlement was ultimately reached, evidently not, as the actual situation is now heading towards Round Two in that boxing ring known as Clark County District Court. The new test date is set for April 3, following jury selection and allowing for the Sands CEO to keep his scheduled Passover journey to Israel from March 26 through April 2.
Asia Embracing Capitalism, One Casino at the same 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 evil capitalism, all hell breaks loose and the communal fervor is displaced by all kinds of things that money can purchase. Gambling is no exclusion, as proven by the slow and steady creep of gambling enterprises onto, gasp, mainland Asia.
It’s Not Only Macau Anymore
It all began, of course, with Chinese Special Administrative District Macau, now the highest revenue-producing gambling zone in the world (out-earning Vegas annually by double-digit billions); but now the island province of Hainan is joining the fray. The smallest and southernmost province for the individuals Republic of China (PRC), Hainan is now poised to become the newest gambling region for Asia’s betting-hungry populace.
Although the first entrant into the Chinese gambling juggernaut, the recently shut-down Mangrove Tree Resorts Sanya Bay, is temporarily closed, you are able to bet your last yen that that will not be the instance for long. According to managing that is iGamiX Ben Lee, the ‘cashless’ casino (patrons were paid in a few kind of rewards markers) was actually a test by Beijing authorities to see if locals would gamble closer to the home front side than Macau (which gets its share of Chinese nationals of all of the income levels). Lee says that nine a lot more of the cashless casinos are waiting to be unleashed now that the capabilities that be see this stuff offers 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 shuttering that is speedy but we understand they are just counting 5-4-3-2-1 before they reopen not just Jesters, but a lot more as well. Not merely that, but according to Lee, Beijing will ultimately turn these cashless casinos into real-money gambling bones, but he says that will happen in stages so as not to ‘dump the remaining licenses on the market in a brief timeframe.’
Lee also says the gaming licenses will be restricted to ‘domestic’ companies, but indian dreaming aristocrat with Caesars Entertainment and MGM Resorts establishing ( for the time being) non-gaming presences in Hainan with new luxury resorts, you are able to bet they’re thinking differently. After all, they are both in the gambling business, not just 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 the 2014 grand opening. Meanwhile, the MGM Grand Sanya is already open for business and tourists that are wowing. We’re guessing that, like so casino that is many round the world, Asia will finally recruit Vegas-based operators to perform their gambling enterprises also, as let’s face it: nobody does it better.
Nevada Gaming Revenues Spiral Down for January
Simply once you think the news for Las vegas, nevada 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 percent revenue tumble regarding the Strip for January 2013 set alongside 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 gaming revenues, which is really a significant fall from $1.038 billion simply a year ago. For the Strip specifically, those numbers were $507 million, versus $623.5 million in 2012 january.
Perhaps Not A delighted New Year…Yet
One explanation for the big drop may have one thing regarding the shifting lunar dates associated with the very profitable Chinese New Year for bringing in a large amount big-money gamblers to Vegas. This year, it fell in February whereas January 2012 encompassed the holiday last year. Gambling dollars from high-end baccarat play, constantly a big household benefit game for casinos, thus were not because impressive as into the same time frame in 2012, whenever Nevada had its first billion-dollar plus month because the economy dropped in the bathroom here straight back in September 2008.
Baccarat is Bread and Butter
Lower than normal baccarat revenues were accountable for 85 percent of the downfall in January. Strip casinos pulled in $99.5 million from the game this year, which was a 50.8 percent downfall from 2012. Real amounts wagered at the game were obviously less also, at $794.8 million, which had been 48.9 percent lower than a year ago. (That does, however, show a pretty edge that is nice your house, regardless; no wonder casinos love this game.) At least the hold levels, meaning exactly what the gambling enterprises got to keep versus what customers won back, was pretty constant with 2012; at 12.02 this compared to 12.47 in 2012 year.
Combined Month Revenues May Be Snake Charmed
Before you sob uncontrollably at the sadness of it all, evaluate these thoughts from Wells Fargo Securities gaming analyst Cameron McKnight, who addressed investors last week: ‘We believe the January-February combined comparison will offer you a more meaningful look into annual growth,’ McKnight told the gathering.
Another analyst, Chad Beynon of Macquarie Securities, said that ‘management groups from Las Vegas Strip casino operators have actually boasted that the ‘of the Snake’ was a good one year. The bad optical results were significantly affected by the timing of the New Year that is chinese.’
Positive thing, that, or a few of their jobs might have been rattled.