It’s No Go Ho for MGM Resorts. Maybe Vietnam is Asia’s first bust that is big community things are certainly not looking cheery for the MGM Ho Tram Strip these days ( only for want of a ‘p’ are the jokes on that name maybe not endless).
Based on a recent securities and exchange Commission (SEC) filing, MGM Resorts International exercised its right to terminate their agreement to manage the property based on a lack of 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 investing in a $95 million stake in Asian Coast Development, with Harbinger Capital Partners being the majority owner. Pinnacle was 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, brought on by delays. A prominent video gaming safety analyst, Chad Beynon of Macquarie Securities, told investors he expected that Pinnacle could well simply take even more write-offs on the Vietnamese property.
‘The fact that MGM Hospitality will no longer be associated with this particular project will greatly detract from the success for the resort/casino,’ stated Beynon in a report that is recent. ‘MGM not only provided an international brand name, but it had been also a significant an element of the design and vision associated with phase that is first. It remains not clear who will actually manage the first phase associated with task now.’
Asian Coast Development, Ltd, the developer of this Ho Tram Strip integrated resort complex in Vietnam, is currently in the first of five planned stages for the property. The plan is for a group that is integrated of 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 with its mild weather and sea water. Along with its sister beach city Ho Coc ( we just report these things, folks), the region is poised to become a resort that is major for the region.
The area is also home to a 27-acre rainforest that was designated as a nature reserve in 1975. Although the majority of the larger wildlife was either poached, killed or moved (many of the region’s elephants finished up in Thailand), many birds that are wild monkeys still stay in the rainforest.
Can I Get a Witness? Adelson going Back to Court in Breach Case
Forget all the shows about what goes on in Vegas casinos; they require to make a series about what continues on behind the scenes. The drama is unending; simply take the situation of one-time Las Vegas Sands Corp. consultant Richard Suen, that is 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 every-where with bodyguards, was apparently served papers by a process server when he emerged from another deposition on September 6 of final year. Actually, it turns away the subpoena was really handed to their attorney, who had been of course 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 lucrative entrée into the Macau gaming market back in 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 mind in disgust here). In fact, 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 video gaming permit. See, that is what we like about Asian politics: there’s none of the Victorian coyness about political bribes or any of that silly rot.
Looks like the presssing issue is how you define ‘work;’ Las Vegas Sands later contended real money online pokies australia that Suen never really did any. In a trial that is nearly month-long in 2008, Suen had been granted $43.8 million, therefore apparently the jury thought he did some anyhow; that amount finished up being a cool $60 million once interest was tacked on.
However, that verdict ended up being overturned this season by the Nevada Supreme Court whenever it uncovered supposed 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 band 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.
China Embracing Capitalism, One Casino at a Time
It’s always exactly the same old story with these ex-Communist countries; the moment they get a taste for the joys of evil capitalism, all hell breaks loose and the communal fervor is displaced by all types of things that money can buy. Gambling is no exception, as proven by the slow and constant creep of casinos onto, gasp, mainland China.
It’s Not Just Macau Anymore
It all began, of program, 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 of the individuals Republic of China (PRC), Hainan is now poised to end up being the newest gambling region 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 managing that is iGamiX Ben Lee, the ‘cashless’ casino (patrons were paid in a few form of benefits 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 income levels). Lee says that nine more of the casinos that are cashless waiting to be unleashed given that the abilities that be see these things offers a lot 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, causing the speedy shuttering; but we know they truly are just counting 5-4-3-2-1 before they reopen not only Jesters, but a lot more also. Not only that, but based on Lee, Beijing will ultimately turn these cashless casinos into real-money gambling joints, but he says that may 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, however with Caesars Entertainment and MGM Resorts establishing ( for the time being) non-gaming presences in Hainan with brand new luxury resorts, you’ll bet these are typically thinking differently. After all, they truly are both in the gambling business, not just the hotel business. Back September 2011, Caesars CEO Gary Loveman announced plans to create a $470-million 1,000 room luxury resort on Hainan called Caesars Palace Longmu Bay; the home is prepared for a 2014 opening that is grand. Meanwhile, the MGM Grand Sanya is already open for business and wowing tourists. We are guessing that, like so many casino properties across the globe, China will fundamentally recruit Vegas-based operators to perform their casinos as well, 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, nevada is picking 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 on the Strip for January 2013 compared to the same time frame a year ago. What’s going on??
New figures simply 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 video 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 pleased New Year…Yet
One explanation for the drop that is big have one thing regarding the moving lunar dates of the very profitable Chinese New Year for bringing in many 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, always a big household benefit game for casinos, thus are not as impressive as within the same timeframe in 2012, when Nevada had its first billion-dollar plus month since the economy dropped in the toilet there straight back in September 2008.
Baccarat is Bread and Butter
Less than normal baccarat profits had been accountable for 85 percent regarding the downfall in January. Strip gambling enterprises 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 also, at $794.8 million, which ended up being 48.9 per cent lower than a year ago. (That does, however, show a pretty edge that is nice the home, regardless; no wonder casinos love this game.) At minimum the hold levels, meaning just 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 revenues Might be Snake Charmed month
It all, consider these thoughts from Wells Fargo Securities gaming analyst Cameron McKnight, who addressed investors last week: ‘We believe the January-February combined comparison will offer a more meaningful look into annual growth,’ McKnight told the gathering before you sob uncontrollably at the sadness of.
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 poor optical results had been significantly affected by the timing of the New Year that is chinese.’
Good thing, that, or a number of their jobs might have been rattled.