Macau’s Studio City Will Default on Debt, Warns Analyst

Macau’s<span id="more-9154"></span> Studio City Will Default on Debt, Warns Analyst

Studio City Macau: Despite its many non-gaming tourist attractions it’s neglecting to attract the mass market crowds.

Studio City Macau, Lawrence Ho and James Packer’s $4.5 billion casino that is integrated on the Cotai Strip is in trouble and might default on the $1.41 billion loan utilized to complete the construction for the hotel.

That’s the word from rating agency Standard and Poor’s Financial Services, which this week issued an outlook that is negative the resort’s bonds, off the back of a 42.5 percent slide in their value.

Macau’s first ever television and movie-themed resort opened in October 2015, with Packer’s girlfriend Mariah Carey headlining the opening night, as the likes of Robert De Nero and Leonardo DiCaprio mingled on the list of crowd. It even had its own night that is opening, The Audition, a short film directed by Martin Scorsese and starring De Nero, DiCaprio and Brad Pitt.

Packer called it the ‘coolest 15 minutes ever made,’ but, with an $80 million price tag, it could equally be described as probably the most expensive advertisement ever made.

Brand New Concept Fails to Drive Crowds

But for all the glitz, Studio City was conceived in a markedly different climate that is economic before Chinese President Xi Jinping’s anti-corruption drive halted the location’s success tale and delivered profits tumbling for 26 straight months.

Studio City went big on non-gaming amenities, positioning itself as a non-VIP gaming destination so that you can woo China’s burgeoning middle-income group.

It offers everything from television and film production facilities to a Batman themed 4-D flight-simulator roller coaster ride and a figure-eight Ferris wheel, but because of a slowing Chinese economy, visitor numbers to Macau are falling and the hordes of middle classes have failed to materialize.

Melco Distances Itself

Melco Crown owns a 60 % stake in the home, while US hedge funds Silver Point Capital and Oaktree Capital own a 40 percent stake. Bloomberg reported this week that Melco Crown has sought to distance itself from any kind of rescue package for the casino.

‘Studio City Casino Macau is at a credit that is entirely separate and its own debt is non-recourse to Melco Crown Entertainment Limited. […] Investors must not assume that Melco Crown Entertainment Limited will give you any monetary support to Studio City Casino Macau or so it would part of for Studio City Casino Macau,’ said a Melco Representative.

There is speculation that that Melco is trying to put the find yourself the hedge funds because it wants to buy them out for a good cost, and that the negative score from Standard and Poor’s will strengthen its position.

Duterte Takes Shock U-turn on Online Gambling

‘Gamble until you die. I do not care,’ said Philippine President Duterte Wednesday, clearly in a far more mood that is forgiving. (Image: rapeller.com)

Philippine President Rodrigo Duterte’s hardline crackdown on online gambling took a twist that is unexpected this week.

On Tuesday the federal government’s gambling operator-regulator, PAGCOR, announced that it was in the entire process of ‘readying applications. it had been ready to license online gambling firms that targeted ‘non-locals’ and’

‘We don’t know yet how saleable it is; there could be no takers,’ PAGCOR Andrea that is chief Domingo to Reuters.’Or there could possibly be many applicants,’ she added brightly.

PAGCOR hopes that the brand new licenses might offset some of the revenue lost by Duterte’s systematic dismantling associated with country’s online gambling giant, Philweb. Until recently, Philweb operated 299 online gambling boutique cafés through the Philippines, which offered online video poker and slots via approximately 8,000 terminals.

Last the company’s operations contributed around $12.2 million in taxes to the government year.

Zero-tolerance

Duterte swept to power in on an agenda that promised to wipe out crime and drugs june. Literally. pelican pete slots The president has leant his help to vigilante death squads that carry out the extra-judicial killings of criminals and drug that is habitual with impunity.

As soon as sworn in, he instantly set his sights on the Philippine online gambling industry, as well as in particular Philweb and its chairman, the billionaire Robert Ongpin.

Ongpin was agent of the ‘oligarchs,’ which he believed were ’embedded in federal government’ and practiced ‘influence peddling.’ Meanwhile, stated Duterte, online gambling ‘had to prevent’ because too many Filipinos had been deciding to gamble rather of working for a living. It appeared that PAGCOR was taken completely by surprise by the announcement.

Restoration

the month Philweb was forced to announce it might wind down its operations, as a result of the non-renewal of its license by PAGCOR. Ongpin stepped straight down as president associated with the company and, as a bid that is last-ditch approval, wanted to transfer nearly all of his majority stake within the company to PAGCOR, in an attempt to save the business and its own 6,000 workers. PAGCOR had been forced to refuse.

But on Wednesday, Duterte was clearly in a more mood that is tolerant.

‘Pay the correct taxes… Gamble until you die. I do not really care,’ he announced magnanimously.

Duterte is currently prepared to restore gambling that is online ‘taxes are correctly collected plus they [online gambling cafes] are situated or placed in districts where gambling is allowed, which means to state, not within the church distance or schools.’

‘ I happened to be mad because perhaps the youth are gambling and there was no way of collecting the proper taxes,’ he admitted.

Whether this means he is ready to permit Philweb to continue its operations as before is currently unclear.

Indiana Casino Union Does What Trump Taj Mahal Workers Couldn’t: Reaches New Deal with Majestic Celebrity Riverboats

Indiana Governor Mike Pence, the current GOP vice-presidential contender, has put their state on the map for financial gains and development during their administration. Now a new casino union contract in the Hoosier State is additionally showing up its sis chapter in Atlantic City, having successfully negotiated for benefits, where its brethren failed.

The Indiana Unite Here casino union has successfully bargained for a new contract with the 2 Majestic Star riverboats in Gary, a stark contrast from the union’s efforts in Atlantic City, which failed. (Image: Unite Here/youtube.com)

Indiana’s Unite Here casino union, representing chefs, wait staff, and housekeepers during the two Majestic Star riverboats in Gary, has now reached an agreement that is new the gambling operator. On August 19, the 2 edges officially signed down for a contract that increases wages over the next 2 yrs, while maintaining the health that is current programs being afforded to union members.

The offer operates through 2018.

Unite Here Local 1 spokesperson Noah Carson-Nelson told the Chicago Tribune, ‘Our users are content. The people were excited that it includes raises and the same health insurance. so it was settled fairly quickly and’

The Majestic Star casinos sit next to 1 another in Lake Michigan, about 30 miles southeast of downtown Chicago.

Regional 1’s parent union, Unite Here, is the same company that unsuccessfully continued strike at the Trump Taj Mahal in Atlantic City early in the day in the summer. Because of this, billionaire owner Carl Icahn announced that the casino is going to be forever shutting on 10 october.

The Trump Element

Formerly referred to as Trump Casino, Majestic Star II was renamed after Trump Entertainment Resorts sold the home to Majestic in 2005 for $253 million.

The sale was part of Trump Hotels & Casino Resorts (THCR) filing for Chapter 11 bankruptcy protection in 2004. The company emerged from liquidation under the brand new Trump Entertainment Resorts name in 2005.

Trump’s record in Atlantic City is obviously questionable. But in Indiana, Trump’s riverboat was decidedly lucrative. Within the 11 years since Majestic acquired the casino that is floating it’s never won as much cash as it did whenever Trump was the financial admiral of this ship.

In 2004, total victories eclipsed $140 million. In 2015, the Majestic Star II taken in just half of that figure.

The Majestic Stars are two of 10 riverboat gambling enterprises in Indiana. The Hoosier State is also home to the French Lick Resort Casino, the only real land-based gambling venue there, plus two racinos that provide slots and electronic table video gaming.

Marked Market Differences Between Two States

Back east in Atlantic City, Unite Here Local 54 was also fighting for higher wages and health insurance at the Trump Taj Mahal. But the bankruptcy procedure already underway when Carl Icahn purchased the casino allowed the billionaire to temporarily suspend pension and healthcare benefits as he worked to upright the casino’s dire financial situation.

But Icahn, who had been reportedly losing $100 million in the endeavor, said he needed more time before restoring benefits. Workers strolled off the task in disgust, and Icahn called their bluff in a move that ultimately caused both edges to lose.

The marketplace is quite different in northwest Indiana than in Atlantic City. Whenever the Taj Mahal closes its doorways in October, it will become the fifth casino to shutter down since 2014 in nj.

The Blue Chip Casino and Hotel in Michigan City, Indiana also recently negotiated effectively with Unite Here Local 1. Ameristar Casino resort did as well, albeit after having a lengthy and process that is tedious.

‘We’re happy to move on, and happy in an equitable manner,’ Majestic Star General Manager Barry Cregan said of the new contract that we did it.

So why would the smaller Indiana gaming union find more success with its boss compared to the much larger Atlantic City market? Because the Taj was already losing millions each month, and the union’s demands would only drive those losses further into the muck. In Indiana, while perhaps not thriving like they might have been more than a decade ago, casinos are apparently nevertheless making enough of a profit to make union benefits a worthwhile investment.

Paddy Power Betfair Reports £47.5 Million Loss Due to Costs of Merger

Breon Corcoran, Paddy energy Betfair CEO, said that the company would not rule away further consolidation if the right opportunity arose. (Image: Sunday Business Post)

Paddy Power Betfair has reported operating losings of £47.5 million ($62.6 million) for the half that is first of in comparison with profits of £106.5 million ($140.5) for the corresponding duration of 2015.

CEO Breon Corcoran this week attributed the losses to one-off expenses related to the merger between the two wagering powerhouses, amounting to £195 million ($257 million) in total. Paddy energy and Betfair agreed terms of their £5 billion ($6.5 billion) merger in September year that is last the deal was only finalized on February 2, 2016.

Thus, short-term losings incurred during through integration, including some £29 million ($38.2) in advisory fees alone, are anticipated to be handsomely offset by cost saving synergies regarding the newly combined company further down the road.

In reality, Paddy Power Betfair has upped its estimate of future expense saving from £50 million ($65 million) per year by 2018 to £65 million ($85.7 million) per year from next year.

A lot of those savings have come from job losses, with 650 of the combined company’s 7,200-strong workforce having found themselves surplus to needs following the merger.

Revenue Up 18 Per Cent

‘People have been really diligent, there is been an awful lot of difficult work done, and promptly,’ said Corcoran of this integration effort. ‘Paddy Power Betfair has sustained good energy through a period of considerable modification.’

Corcoran also pointed to an 18 per cent rise in revenue for the period, to £759 million ($1 billion), as well as double-digit growth across all four of its core divisions. Discounting merger expenses, would have reported underlying earnings of £181 million ($238 million), Corcoran said.

On the web revenue was up 20 percent at £440 million ($580 million), while Paddy Power’s land-based bookmaking stores recorded a 12 percent rise in revenues to £147 million ($193 million). The company’s US and operations that are australian reported growth.

More Consolidation Viable

‘The restructuring is now largely complete and the merger synergies are being delivered in front of schedule,’ said Corcoran. ‘Our company is producing a world class operation by exploiting the unique assets and abilities of each legacy business, particularly in the key functions of technology, advertising and trading.

‘While our industry continues to be highly competitive and is exposed to the prevailing economic and regulatory surroundings, our strong market roles, increased scale and enhanced capabilities position us well for sustainable, lucrative growth.’

Corcoran also refused to rule the possibility out of more consolidation. If the right asset came up at the right price his company will be well placed to obtain it, he said, nevertheless the moment he had been focusing on the integration process.