It’s No Go Ho for MGM Resorts. Maybe Vietnam will likely be Asia’s first big bust gambling community things are generally not looking cheery for the MGM Ho Tram Strip these days ( only for want of the ‘p’ are the jokes on that name maybe not endless).
Based on A securities that is recent and Commission (SEC) filing, MGM Resorts International exercised its straight to terminate their agreement to manage the home based for a not enough pre-opening milestones having been accomplished 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 was a 23 per cent stakeholder; apparently, that was not a harbinger of good things to come.
By 2012, Pinnacle had already written off $25 million on their investment, caused by delays. A prominent video gaming safety analyst, Chad Beynon of Macquarie Securities, told investors he expected that Pinnacle could well just take even more write-offs on the property that is vietnamese.
‘The fact that MGM Hospitality will no longer be associated using this project will significantly detract from the success of the resort/casino,’ said Beynon in a report that is recent. ‘MGM not only provided a global brand name, but it was also a significant the main design and vision of this first phase. It remains confusing who will actually manage the phase that is first of task now.’
Asian Coast Development, Ltd, the designer of the Ho Tram Strip integrated resort complex in Vietnam, is presently in the first of five planned stages for the property. The plan is for an integrated group of resorts 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 more than a century as a wellness sanitorium for treatment of many different diseases using its mild weather and ocean water. Along with its sister beach city Ho Coc ( we just report these items, folks), the location is poised to become a resort that is major for the region.
The area is additionally home to a rainforest that is 27-acre was designated as a nature reserve in 1975. Although most of the bigger wildlife was either poached, killed or moved (many of the location’s elephants finished up in Thailand), many wild wild birds and monkeys still remain into the rainforest.
Forget all the TV shows about what are the results in Las Vegas casinos; they want to create a series about what continues on behind the scenes. The drama is unending; just take the actual situation of one-time Las Vegas Sands Corp. consultant Richard Suen, who’s returning to court in April with Sands chairman and CEO Sheldon Adelson already served to appear as the defense’s lead witness.
Served with Bodyguards
Adelson, who perhaps understandably goes everywhere with bodyguards, was evidently served papers by a process server as he emerged from another deposition on 6 of last year september. Actually, it turns out the subpoena was really handed to their attorney, who was of course with him in court; that’s the power of having an attorney that is good.
Breach of Contract Alleged
It all dates back in to Suen’s allegations that he was responsible for Sands’ now really lucrative entrée into the Macau gaming market back in 2004. He claims to have arranged meetings with key Chinese government officials that paved just how for the deal (we can just see Illinois Gov. Pat Quinn shaking his mind in disgust here). In fact, previous 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 gaming license. See, that is what we like about Asian politics: there’s none of the Victorian coyness about political bribes or any of the silly rot.
Looks like the presssing issue is how you determine ‘work;’ Las Vegas Sands later contended that Suen never ever really did any. In a nearly month-long trial straight back in 2008, Suen had been granted $43.8 million, so apparently the jury thought he did some anyhow; that amount finished up being an awesome $60 million once interest had been tacked on.
Nonetheless, that verdict had been overturned this season by the Nevada Supreme Court whenever it uncovered expected errors by the test judge. While some thought a settlement was ultimately reached, apparently not, as the scenario 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.
It’s always exactly the same old tale with these ex-Communist countries; the moment they get a flavor for the joys of wicked capitalism, all hell breaks loose and the communal fervor is displaced by a variety of things that money can buy. Gambling is no exclusion, as proven by the slow and steady creep of gambling enterprises onto, gasp, mainland Asia.
It’s Not Just Macau Anymore
It all began, of program, with Chinese Special Administrative District Macau, now the revenue-producing gambling zone that is highest 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 of the individuals Republic of China (PRC), Hainan is now poised to become the gambling region that is newest for China’s betting-hungry population.
Even though first entrant into the Chinese gambling juggernaut, the recently shut-down Mangrove Tree Resorts Sanya Bay, is temporarily closed, you’ll bet your last yen that that defintely won’t be the case for long. According to iGamiX managing partner Ben Lee, the ‘cashless’ casino (patrons were paid in a few types of benefits markers) was really 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 income levels). Lee says that nine more of the casinos that are cashless waiting to be unleashed given that the capabilities that be see this stuff sells much better than do-it-yourself furniture at Tarjay.
To Be Slowly Unfurled
Apparently some type of furor ensued once word leaked out about the Jesters Casino Bar at Mangrove Tree, inducing the shuttering that is speedy but we understand they’re just counting 5-4-3-2-1 before they reopen not only Jesters, but a lot more as well. Not only that, but based on Lee, Beijing will ultimately turn these cashless casinos into real-money gambling bones, but he says that will happen in stages so because not to ‘dump the residual licenses available on the market in a short timeframe.’
Lee also says the gaming licenses will be restricted to ‘domestic’ companies, but with Caesars Entertainment and MGM Resorts establishing ( for now) non-gaming presences in Hainan with new luxury resorts, you are able to bet they have been thinking differently. Most likely, they are both in the gambling company, not just the hotel business. Back September 2011, Caesars CEO Gary Loveman announced plans to construct a $470-million 1,000 room luxury resort on Hainan called Caesars Palace Longmu Bay; the property is planned for a 2014 opening that is grand. Meanwhile, the MGM Grand Sanya is already open for business and wowing tourists. We’re guessing that, like so casino that is many round the world, China will fundamentally recruit Vegas-based operators to run their gambling enterprises besides, as let’s face it: nobody does it better.
Just when you think the news for Las vegas, nevada is picking up with Genting’s announcement of the new massive Strip project on the old Stardust/Echelon site, bad news hits: an 18.7 percent revenue tumble on the Strip for January 2013 compared to the same time period this past year. What’s happening??
New figures just released by Nevada’s Gaming Control Board revealed a 12.4 percent drop overall in the Silver State for January, with $909.2 million in gaming revenues, which really is a significant fall from $1.038 billion just a year ago. For the Strip specifically, those numbers were $507 million, versus $623.5 million in 2012 january.
Not A delighted New Year…Yet
One explanation for the big drop may have something related to the shifting lunar dates for the very lucrative Chinese New Year for bringing in many big-money gamblers to Vegas. Whereas January 2012 encompassed the vacation this past year, this year, it dropped in February. Gambling dollars from high-end baccarat play, always a big home benefit game for casinos, thus were not since impressive as within the same timeframe in 2012, when Nevada had its very first billion-dollar plus thirty days because the economy dropped in the bathroom there straight back in September 2008.
Baccarat is Bread and Butter
Less than normal baccarat revenues had been accountable for 85 percent for the downfall in January. Strip gambling enterprises pulled in $99.5 million through the game this 12 months, that was a 50.8 % 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 edge that is nice the house, regardless; no wonder casinos love this game.) At minimum the hold levels, meaning just what the casinos surely got to keep versus what customers won back, was pretty constant with 2012; at 12.02 this year in comparison to 12.47 in 2012.
Combined revenues Might be Snake Charmed month
Before you sob uncontrollably at the sadness of it all, evaluate these thoughts from Wells Fargo Securities gaming analyst Cameron McKnight, who addressed investors a week ago: ‘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 boasted that the ‘Year associated with the Snake’ was a great one. The poor optical outcomes were significantly affected by the timing of the New Year that is chinese.’
A valuable thing, that, or a few of their jobs might have been rattled.