It’s No Go Ho for MGM Resorts. Maybe Vietnam is Asia’s first big bust gambling community things aren’t 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).
In accordance with a recent securities and exchange Commission (SEC) filing, MGM Resorts International exercised its right to end their agreement to manage the home 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 buying 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 wasn’t a harbinger of good things to come.
By 2012, Pinnacle had already written off $25 million on the investment, due to delays. A prominent gaming security 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 not be associated using this project will significantly detract from the success associated with the resort/casino,’ stated Beynon in a recent report. ‘MGM not only provided an international brand title, but it was also a significant area of the design and vision for the phase that is first. It remains ambiguous who will actually manage the phase that is first of project now.’
Asian Coast Development, Ltd, the developer of this 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 a lot 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 wellness sanitorium for treatment of many different diseases using its mild environment and sea water. Along side its sister beach city Ho Coc ( we simply report these things, folks), the region is poised to become a resort that is major for the region.
The area is additionally home up to a rainforest that is 27-acre was designated as a nature book in 1975. Although nearly all of the larger wildlife ended up being either poached, killed or moved (many of the area’s elephants ended up in Thailand), many wild birds and monkeys nevertheless stay within the rainforest.
Can I Get a Witness? Adelson Heading Back to Court in Breach Case
Forget all the TV shows about how are you affected in Vegas casinos; they need to help make a show in what goes on behind the scenes. The drama is unending; take the truth of one-time Las Vegas Sands Corp. consultant Richard Suen, that is finding its way back to court in with Sands chairman and CEO Sheldon Adelson already served to appear as the defense’s lead witness april.
Served with Bodyguards
Adelson, who perhaps understandably goes every-where with bodyguards, was evidently served papers by a process server as he emerged from another deposition on September 6 of last year. Actually, it turns out the subpoena was actually handed to their lawyer, who had been needless to say with him in court; that’s the effectiveness of having an attorney that is good.
Breach of Contract Alleged
It all dates back in to Suen’s allegations which he was responsible for Sands’ now really entré that is lucrative into the Macau gaming market back in 2004. He claims to have arranged meetings with key Chinese government officials that paved the way for the deal (we can just see Illinois Gov. Pat Quinn shaking his mind in disgust here). In reality, former Sands president Bill Weidner brought Suen on in 2001 for a $5 million charge, plus 2% of any casino revenue if their ‘work,’ (i.e., connections) led to securing a gaming license. See, that’s what we like about Asian politics: there’s none of this Victorian coyness about political bribes or any of that rot that is silly.
Looks such as the presssing issue is how you determine ‘work;’ Las vegas, nevada Sands later contended that Suen never really did any. In a trial that is nearly month-long in 2008, Suen ended up being granted $43.8 million, so apparently the jury thought he did some anyway; that amount finished up being a very good $60 million once interest was tacked on.
However, that verdict ended up being overturned this year by the Nevada Supreme Court when it uncovered expected errors by the trial judge. While some thought a settlement was fundamentally reached, evidently not, as the scenario is now heading towards Round Two in that boxing ring 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.
Asia Embracing Capitalism, One Casino at any given Time
It’s always exactly the same story that is old these ex-Communist countries; the moment they get a flavor for the joys of evil capitalism, all hell breaks loose and the communal fervor is displaced by a variety of things that money can find. Gambling is no exclusion, as proven by the slow and creep that is steady of onto, gasp, mainland China.
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 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 individuals Republic of China (PRC), Hainan is now poised to become the gambling region that is newest for Asia’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 a few kind of rewards markers) was really 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 most earnings levels). Lee says that nine a lot more of the casinos that are cashless waiting to be unleashed given that the powers that be see this stuff sells a lot better than do-it-yourself furniture at Tarjay.
To Be Slowly Unfurled
Evidently some sort 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 are just counting 5-4-3-2-1 before they reopen not only Jesters, but many more too. Not just that, but in accordance with 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 rest of the licenses on the market in a brief timeframe.’
Lee also says the gaming licenses will be restricted to ‘domestic’ companies, however with Caesars Entertainment and MGM Resorts establishing ( for the present time) non-gaming presences in Hainan with brand new luxury resorts, it is possible to bet these are typically thinking differently. In the end, they’re both in the gambling business, not just the hotel business. Back in September 2011, Caesars CEO Gary Loveman announced plans to build a $470-million 1,000 room luxury resort on Hainan called Caesars Palace Longmu Bay; the home is planned for a 2014 grand opening. 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 world, China will eventually recruit Vegas-based operators to perform their gambling enterprises too real-money-casino.club, as let’s face it: nobody does it better.
Nevada Gaming Revenues Spiral Down for January
Simply whenever you think the news for nevada is picking right on up with Genting’s announcement of a brand new massive Strip task on the old Stardust/Echelon site, bad news hits: an 18.7 per cent revenue tumble on the Strip for January 2013 compared to the same time frame a year ago. 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 is a significant drop from $1.038 billion simply a year ago. For the Strip specifically, those numbers were $507 million, versus $623.5 million in January 2012.
Perhaps Not A happy New Year…Yet
One reason for the big fall may have something regarding the moving lunar dates of this very profitable Chinese New 12 months for bringing in a large amount big-money gamblers to Las 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 house benefit game for casinos, thus are not because impressive as into the same time frame in 2012, whenever Nevada had its very first billion-dollar plus thirty days because the economy fell in the toilet there right back in September 2008.
Baccarat is Bread and Butter
Lower than normal baccarat profits had been responsible for 85 percent of the downfall in January. Strip casinos pulled in $99.5 million from the game this which was a 50.8 percent downfall from 2012 year. Real amounts wagered during the game were obviously less as well, at $794.8 million, which was 48.9 % lower than a year ago. (That does, however, show a pretty nice edge for your house, regardless; no wonder gambling enterprises love this game.) At minimum the hold levels, meaning just what the casinos got to keep versus what customers won back, was pretty steady 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, examine these thoughts from Wells Fargo Securities gaming analyst Cameron McKnight, who addressed investors a week ago: ‘We believe the January-February combined comparison will offer 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 ‘Year associated with the Snake’ was good one. The poor optical outcomes 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.