On Monday morning, James Packer will wake up in Macau to his moment of truth.
In the 3 1/2 years since the death of his legendary father, Kerry, Packer has transformed the family empire from one focused predominantly on media into the international casinos conglomerate Crown.
Monday's opening of Macau's City of Dreams casino -- one of the Chinese territory's most opulent and expensive -- is a crucial psychological marker on whether that transformation has been successful.
One of Packer's close confidants told The Weekend Australian this week the 42-year-old "always had a real belief in Macau and he's backed his belief". "City of Dreams is the culmination of that," the friend says. "It will be the jewel in the crown, in terms of size, of all of his casinos."
But with size comes risk. Packer has bet hundreds of millions of dollars of his money -- but more importantly his reputation as a major player on the international gaming scene alongside casino legends Stanley Ho, Steve Wynn and Sheldon Adelson -- on Macau.
Packer and Stanley Ho's son, Lawrence Ho -- his partner in the Melco Crown Entertainment joint venture behind the casino -- unveiled their plans for City of Dreams in the midst of an unseemly rush to develop a new Asian Las Vegas.
But today, such developments face pretty strong headwinds. In particular, gaming revenues in Macau are under pressure as the financial crisis and restrictions on Chinese citizens travelling to the former Portuguese colony bite. Even major players, such as the Las Vegas Sands, have reportedly delayed projects. Packer's fortunes have certainly fallen in line with the global crisis, with BRW magazine this week estimating his worth at $3 billion, down from $6.1 billion this time last year and the $7.3 billion he reportedly inherited from his father.
Still, Crown shares, of which the Packer family owns 36 per cent, have rallied strongly ahead of the City of Dreams opening. The run was spurred in part by Crown's escape from a proposed $US1.75 billion ($2.2 billion) takeover of Cannery Casino Resorts in the US. But one source close to Packer describes him as "quietly confident" about the future of City of Dreams. "I think we benefited from the fact there are a hell of a lot of cranes up there on unfinished projects," he says. "It is the only big new casino opening, and it will be the only one for some time."
The importance of Monday night's spectacular opening ceremony and first few months of trading are not lost on Melco Crown finance chief Simon Dewhurst. "City of Dreams is our flagship development," he says.
"It has consumed over 60 per cent of our investment capital and it represents our first opportunity in Macau to compete for the integrated resort middle ground that represents the future for the market. The opening of CoD marks the culmination of more than six years hard work. We are taking a transformational step from being primarily a development company, to being primarily an operating company."
Crown chief Rowen Craigie agrees the opening of City of Dreams represents "a major milestone". He says: "City of Dreams will be an exciting and attractive property and will benefit from being the only major casino entertainment complex to open in Macau in 2009."
City of Dreams, on Macau's popular Cotai strip, will be Melco Crown's second in the territory, following the opening of the $US760 million Crown Macau (now the Altira Macau) in 2007.
Analysts say City of Dreams is the first casino in Macau to break the $US2billion investment threshold. Its opening will be the culmination of a process that started before Kerry Packer's death when James settled on Macau as the first focal point of his global gaming ambitions.
In November 2004, Packer struck a joint venture agreement with the Hong Kong-listed leisure and entertainment group, Melco Development, run by Lawrence Ho. While there was little concrete announced at the time, it was soon made clear the joint venture company had big plans.
Once his father died in December 2005, Packer moved quickly to transform what was then the media-driven Publishing and Broadcasting Limited into a gaming empire. This transformation was highlighted late in 2006 with the top-of-the-market sale of PBL Media -- owner of the Nine Network and ACP Magazines -- to private equity firm CVC Asia Pacific for more than $5billion, just before the value of the assets started to decline amid both structural and cyclical change.
The PBL empire was left as largely a casino-focused one, and a subsequent split of the group in 2007 saw the casino assets hived off into the new casinos group, Crown.
But the move that signalled Packer's serious intent for gaming in Macau was his joint move with Melco just three months after his father's death to buy Macau's last available casino sub-concession from Wynn, the US casino entrepreneur, for $US900 million. The move cemented Packer and Ho as major players at the table of Macau's casino industry.
Altira Macau and City of Dreams are now held through Melco Crown Entertainment, which is listed on the Nasdaq index in the US and counts Crown as a 36.4 per cent shareholder.
Since 2006, Crown has also made a series of casino purchases independent of the Melco Crown venture in North America. These include stakes in the US-based Fontainebleau Resorts, Canada's Gateway Resorts group, Stations Casino Group and Harrah's Entertainment, underlining Packer's intense focus on gaming assets.
With the fall-off in casino values worldwide since the purchases, critics -- acting with the benefit of 20/20 hindsight -- have questioned the wisdom of his moves in both Macau and North America shortly before the global economic downturn. Even Crown's Rowen Craigie reportedly admitted earlier this year that the group had bought some of its US assets at the top of the market.
Crown's woes in the US were on full display in the company's interim profit result, with the group posting a reported net loss of $409.7 million due to a non-recurring $454.9 million writedown to the value of its minority US casino investments -- namely Fontainebleau, Stations and Harrah's.
But Packer's supporters assert that while there has been a fall in value of the US ventures in particular, he is well up on his Macau investments. After its $US45 million investment in Melco Crown's $US180 million capital raising this month, Crown has now invested a total of $US500 million in the group. That stake is now worth more than $US1 billion. Friends point out that Packer has effectively doubled his money and, in the process, gained a major say in a business that has two casinos fully funded, one of only six casino licences in Macau, and assorted hotels, retail complexes and entertainment venues supporting the casinos.
Melco Crown is not without problems. It booked a March quarter net loss of $US35.3 million, compared to a profit of $US43.2 million for the same period last year, prompting Ho to admit the casino market was not out of the woods yet. One analyst noted that Crown Macau had a "very poor opening" in 2007, with Packer's reputation suffering as a result. City of Dreams, he says, represents "a very critical moment".
Then again, Deutsche Bank last week raised its price target on Melco Crown from $US4.40 to $US6 a share, saying it was "now more confident on the success of City of Dreams after we walked through the property early this month".
City of Dreams certainly sounds impressive. Ho promises the water- and fantasy-themed complex will be a "next-generation resort like no other in Asia, or perhaps the world".
Located directly opposite the biggest casino in Macau -- the Las Vegas Sands Venetian Macau -- it will boast several distinctly branded casino floors, three world-class hotels and a shopping precinct to be known as The Boulevard.
On Monday, Melco Crown opens the first phase of that project, which will include the Crown Towers and Hard Rock hotels, 20 bars and restaurants, The Boulevard, plus a casino with 520 gaming tables (a third of which will be VIP) and 1350 gaming machines. It will be the only major casino to open in Macau this calendar year.
The casino's Bubble Theatre will feature a 10-minute "Dragon's Treasure" multi-media lights show. Theatre of Dreams, a 2000-seat theatre, will feature a Cirque Du Soleil-style water production when it opens in the December half. By December, the third hotel, the Grand Hyatt, will open, giving the complex a total of 1400 rooms. And there is even the future prospect of a further apartment development in the complex, subject to Macau regulatory approval. Melco's Dewhurst says Melco Crown is "very confident". He says: "We have spent a very significant amount of time, energy and resource into understanding what's working and what's not working throughout the market. We think City of Dreams is right."
Success for Melco Crown and City of Dreams will come down to a number of things. But one key measure will be foot traffic. "We expect that we will have something in the order of 35,000 guests a day passing through the property," Dewhurst says. "I have no doubt that we will have in excess of that number on the first day. In the first 100 days what's important for us is that on any of those 100 days we see that volume of traffic into the building."
In the current climate, that could be a challenge. Its performance will hinge on the recovery of the Asian economy -- and in particular how quickly Asian high-rollers return to the territory's casinos after the tough recent times.
Credit Suisse analyst Gabriel Chan said in a note last week that "with concerns about swine flu remaining vital, and signs that the recovery pace of the Chinese economy may have slowed, we see certain execution risks for the opening".
Indeed, visitor numbers to Macau, as recorded by the Statistics and Census Service, were down 3.5 per cent in April from the same period last year and steady over the previous month. Visitors from mainland China were down 13.5 per cent year on year.
Gaming revenues have suffered as a result of weaker visitor arrivals, but the pace of the decline has stabilised in the past few months. And there are hopes, from Ho down, for a swift rebound, partly driven by the buzz from the City of Dreams opening.
Some analysts believe that as Macau's most expensive casino, City of Dreams may be able to take market share from other players.
Janet Brashear, senior gaming analyst with US investment house Sanford C. Bernstein, says she expects City of Dreams to "make a splash, garnering $US1.4 billion in gross gaming revenues in 2010 and a 10 per cent share of the market". She also predicts City of Dreams could cannibalise the market share of some of its competitors in Macau, such as the Venetian Macau and Wynn resort.
For analysts, success will come down to one thing -- City of Dreams achieving an earnings before interest, tax, depreciation and amortisation of about $US300 million in the first year.
"You look across the road at the Venetian and they're doing about $US120 million EBITDA a quarter -- $US500 million a year," says one analyst. "So you would have thought $US300 million would be achievable for City of Dreams."
If City of Dreams achieves better than that -- say $US500 million a year -- then it will be a strong position against its rivals. There is growing speculation that casino giant MGM may have to sell its Macau interests after US regulators raised concerns about its local joint venture partner, Pansy Ho -- the daughter of Stanley and brother of Lawrence. Las Vegas Sands is also looking to sell some plots.
One close Packer confidant is hedging his bets ahead of Monday's event. He says: "On the assumption that the Macau economy will start to improve, Melco and City of Dreams are going to be in a very good place." (The Australian)
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Sunday, May 31, 2009
James Packer's biggest casino venture opens in Macau today - The Daily Telegraph - 1st June 2009
It is arguably James Packer's biggest and boldest venture, a key pillar in the man's grand plan of global gaming dominance. And it opens today.
It is the much-hyped City of Dreams, a colossal casino resort on Macau's glitzy Cotai Strip and the second instalment from Melco Crown (MPEL), the company jointly owned by Packer's Crown Limited, and Melco.
There is no disputing the fanfare with which the grandiose complex will open, but what is a hot topic is whether the venture will be a success.
The timing, amid a global meltdown and hampered by a forced slowdown of tourists entering Macau, is not helpful.
But it does have one key advantage. It is the only casino opening in Macau this year, after much-larger projects were postponed.
One gaming analyst told The Daily Telegraph the City of Dreams "was a sink or swim moment" for MPEL.
But UBS analysts believes product offering, and most surprisingly timing, will make City of Dreams a success.
"Against the context of limited supply growth, improving market revenue trends, and City of Dream's scale and product, MPEL is arguably in the right place at the right time," the analysts said in a report.
Melco Crown suffered an inglorious start to life in Macau with Crown Macau failing to attract the punters due to its location and public perceptions that the complex had Feng Shui design issues.
Recently reborn as Altira Macau, the complex has since flourished thanks to the significant revenue generated by VIP gamblers ferried in from Hong Kong.
MPEL does hold a licence to build a third casino complex in Macau, but has not committed to plans as yet. (Credit: The Daily Telegraph)
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It is the much-hyped City of Dreams, a colossal casino resort on Macau's glitzy Cotai Strip and the second instalment from Melco Crown (MPEL), the company jointly owned by Packer's Crown Limited, and Melco.
There is no disputing the fanfare with which the grandiose complex will open, but what is a hot topic is whether the venture will be a success.
The timing, amid a global meltdown and hampered by a forced slowdown of tourists entering Macau, is not helpful.
But it does have one key advantage. It is the only casino opening in Macau this year, after much-larger projects were postponed.
One gaming analyst told The Daily Telegraph the City of Dreams "was a sink or swim moment" for MPEL.
But UBS analysts believes product offering, and most surprisingly timing, will make City of Dreams a success.
"Against the context of limited supply growth, improving market revenue trends, and City of Dream's scale and product, MPEL is arguably in the right place at the right time," the analysts said in a report.
Melco Crown suffered an inglorious start to life in Macau with Crown Macau failing to attract the punters due to its location and public perceptions that the complex had Feng Shui design issues.
Recently reborn as Altira Macau, the complex has since flourished thanks to the significant revenue generated by VIP gamblers ferried in from Hong Kong.
MPEL does hold a licence to build a third casino complex in Macau, but has not committed to plans as yet. (Credit: The Daily Telegraph)
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Tuesday, May 26, 2009
Vic govt denies favours for Crown casino, by Katie Bradford - Fairfax - 27th May 2009
The Victorian government denies giving special favours to Crown casino but admits it has a close working relationship.
Two weeks after announcing it was allowing Crown to expand its gaming floor in return for increased poker machine tax, Tourism Minister Tim Holding defended the government's relationship with the casino while promoting its new hotel on Monday.
"We work closely with Crown but there's no deal in relation to this development," Mr Holding told reporters.
"Whether you're coming to dine in the magnificent restaurant, whether you want to stay in the fantastic hotel, whether you're wanting to gamble in the casino ... whatever you want to do here on site there are fantastic opportunities to do so.
"The government is very pleased that Crown is so confident in the tourism industry of Victoria that it has decided to build Australia's biggest hotel."
Anti-gambling campaigners accused the government of having a "cosy" relationship with Crown after permitting it to expand its gaming area by a further 150 tables.
In exchange, Crown's tax rate on its poker machines will progressively increase by 10 per cent to 32.5 per cent by 2014/15 - only then matching what other gaming venues already pay.
"We actually use this as an example of how Crown is being treated the same as other venues across Victoria," Mr Holding said.
Crown Melbourne's chief executive David Courtney refused to comment on his relationship with the government, or the tax deal.
"We're really here today to talk about the new hotel, it's a significant investment," he told reporters.
Under repeated questioning, Mr Courtney said it had been 10 years since Crown had been allowed to expand its gaming operations.
"It's very important to allow us to beat international competitors."
He refused to answer questions on whether the casino had a "sweetheart relationship" with the state government.
But Mr Courtney admitted the expansion would attract more high rollers.
Victorian opposition leader Ted Baillieu said the relationship between the government and the venue was "obviously very close".
He demanded the government answer further questions about the extra tables deal, including who initiated it and what the exact conditions were.
"Clearly, until these questions are being answered by the government, it ought to be very cautious about the relationship."
Mr Baillieu said Mr Holding would do "anything he believes was in his own interests".
"But that's the way this government operates, this is a government of political patronage, this is the government that's searching for favours all over the place but it's lost touch with the community, it's lost touch with reality and has no credibility on integrity, on corruption and on good governance." (Credit: Fairfax)
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Two weeks after announcing it was allowing Crown to expand its gaming floor in return for increased poker machine tax, Tourism Minister Tim Holding defended the government's relationship with the casino while promoting its new hotel on Monday.
"We work closely with Crown but there's no deal in relation to this development," Mr Holding told reporters.
"Whether you're coming to dine in the magnificent restaurant, whether you want to stay in the fantastic hotel, whether you're wanting to gamble in the casino ... whatever you want to do here on site there are fantastic opportunities to do so.
"The government is very pleased that Crown is so confident in the tourism industry of Victoria that it has decided to build Australia's biggest hotel."
Anti-gambling campaigners accused the government of having a "cosy" relationship with Crown after permitting it to expand its gaming area by a further 150 tables.
In exchange, Crown's tax rate on its poker machines will progressively increase by 10 per cent to 32.5 per cent by 2014/15 - only then matching what other gaming venues already pay.
"We actually use this as an example of how Crown is being treated the same as other venues across Victoria," Mr Holding said.
Crown Melbourne's chief executive David Courtney refused to comment on his relationship with the government, or the tax deal.
"We're really here today to talk about the new hotel, it's a significant investment," he told reporters.
Under repeated questioning, Mr Courtney said it had been 10 years since Crown had been allowed to expand its gaming operations.
"It's very important to allow us to beat international competitors."
He refused to answer questions on whether the casino had a "sweetheart relationship" with the state government.
But Mr Courtney admitted the expansion would attract more high rollers.
Victorian opposition leader Ted Baillieu said the relationship between the government and the venue was "obviously very close".
He demanded the government answer further questions about the extra tables deal, including who initiated it and what the exact conditions were.
"Clearly, until these questions are being answered by the government, it ought to be very cautious about the relationship."
Mr Baillieu said Mr Holding would do "anything he believes was in his own interests".
"But that's the way this government operates, this is a government of political patronage, this is the government that's searching for favours all over the place but it's lost touch with the community, it's lost touch with reality and has no credibility on integrity, on corruption and on good governance." (Credit: Fairfax)
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Monday, May 25, 2009
G2E Asia to look at Asian gaming industry's future - Macau Daily Times - 25th May 2009
The Global Gaming Expo Asia (G2E Asia) 2009 will in this year present its industrial trade show and forums from June 2 to June 4 at the Venetian Macao Resort Hotel.
Hosted by the American Gaming Association, it is an annual international gaming event dedicated to the Asian gaming markets.
The three-day conferences will provide the latest trend in the Asian gaming industry and showcase of new products brought by leading manufacturers.
The conference will bring together a panel of eminent business and industry leaders from a variety of sectors related to the gaming industry, to exchange views and insights on the emerging gaming market in Asia Pacific.
Speakers will also share and discuss the impact of the global economic downturn on the gaming industry and the gaming equipment sector from the manufacturers’ perspective.
In addition, they will talk about the current and future outlook in regards to the Asian gaming industry.
The opening ceremony of G2E Asia 2009 will be held in conjunction with the Visionary Award Presentation with a keynote address by Stanley Ho Hung-sun at 10am on June 3 in the Naples Room.
It will be followed by a VIP tour with officiating guests at Exhibition Hall A and B.
The conferences and forums will be open from the morning till the afternoon, with different schedules each day.
(Credit: Macau Daily Times)
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Hosted by the American Gaming Association, it is an annual international gaming event dedicated to the Asian gaming markets.
The three-day conferences will provide the latest trend in the Asian gaming industry and showcase of new products brought by leading manufacturers.
The conference will bring together a panel of eminent business and industry leaders from a variety of sectors related to the gaming industry, to exchange views and insights on the emerging gaming market in Asia Pacific.
Speakers will also share and discuss the impact of the global economic downturn on the gaming industry and the gaming equipment sector from the manufacturers’ perspective.
In addition, they will talk about the current and future outlook in regards to the Asian gaming industry.
The opening ceremony of G2E Asia 2009 will be held in conjunction with the Visionary Award Presentation with a keynote address by Stanley Ho Hung-sun at 10am on June 3 in the Naples Room.
It will be followed by a VIP tour with officiating guests at Exhibition Hall A and B.
The conferences and forums will be open from the morning till the afternoon, with different schedules each day.
(Credit: Macau Daily Times)
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Saturday, May 23, 2009
Global downturn hammers James Packer's gambling ambitions, by Eli Greenblat - The Age - 22nd May 2009
James Packer's growing casino operation in Macau is the latest victim of the global downturn.
Dwindling patronage at Crown's Macau joint venture, which posted a $US35.3 million ($A45.6 million) first-quarter loss on a 55 per cent revenue slump, is challenging his push into the region.
Melco Crown Entertainment, which operates the Altira Macau casino and is building the $US2 billion City of Dreams casino, reported overnight that in the first quarter of this year revenue fell to $US216.5 million, down from $US482.9 million in the previous corresponding period.
Revenue from its maiden Altira development dropped 60 per cent in the period.
Although Melco Crown Entertainment's adjusted pre-tax and depreciation earnings were significantly weaker, they remained in the black at $US21.3 million. But the bottom line was deep in the red and showed a $US35.3 million loss against a $US43.2 million profit previously.
The souring performance reflects the depressed state of major casino and gambling businesses in Asia and the US, forcing companies to slash the value of their assets in the face of a drop in consumer spending on gambling and entertainment.
For Mr Packer, it is a further blow to his ambitions in the region as he tries to broaden Crown's earnings base away from Australia — where the company owns Melbourne's Crown Casino and Burswood Casino in Perth — to the Asian region and North America. In 2006, soon after the death of his father, Kerry, James Packer forged a $US8.7 billion venture with Lawrence Ho's Melco casino group to create Melco Crown Entertainment. Mr Ho is the son of Macau gambling kingpin Stanley Ho.
Crown, then called Publishing and Broadcasting Ltd, took a post-listing 41.4 per cent equity share in the joint venture that was valued at $A4.73 billion when Melco Crown Entertainment stock began trading on Nasdaq and closed its first day at $US21.55.
Since then, Crown's stake in the joint venture has been diluted to 36.4 per cent while Melco Crown Entertainment shares have fallen to $US5.85.
At Crown's half-year financial report, chief executive Rowen Craigie said its share of Melco Crown Entertainment's normalised result for the half was an $A11.3 million loss. The venture's Altira Macau casino recorded $US183.6 million net revenue for the March quarter versus $US459.9 million for the same quarter last year.
Constellation Capital Management investment analyst Peter Chilton said yesterday the Macau casino market was having earnings problems similar to those of Las Vegas.
"It probably is under some pressure with a lot of new capacity and at the same time the actual business available has slowed down, because of the downturn in China," he said. "And we have seen it in the United States as well, where people are less willing to, and have less funds available, to put into casinos.
"Las Vegas is suffering as well. I think maybe people had thought of casinos as fairly recession-type-proof businesses but there is obviously a limit in a serious downturn — people do visit these establishments less, or spend less money."
Melco Crown Entertainment co-chairman and chief executive Mr Ho said City of Dreams was scheduled to open on June 1, and the budget was unchanged.
"Our financial position remains strong and our balance sheet is one of the best in the gaming industry," he said. "We held approximately $US755 million of cash, excluding cage cash, at the end of the first quarter, and we expect to spend approximately $US244 million on construction and pre-opening preparations at City of Dreams from the start of the current quarter through its opening."
Crown shares fell 2¢ to $6.97.
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(Credit: The Age)
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Dwindling patronage at Crown's Macau joint venture, which posted a $US35.3 million ($A45.6 million) first-quarter loss on a 55 per cent revenue slump, is challenging his push into the region.
Melco Crown Entertainment, which operates the Altira Macau casino and is building the $US2 billion City of Dreams casino, reported overnight that in the first quarter of this year revenue fell to $US216.5 million, down from $US482.9 million in the previous corresponding period.
Revenue from its maiden Altira development dropped 60 per cent in the period.
Although Melco Crown Entertainment's adjusted pre-tax and depreciation earnings were significantly weaker, they remained in the black at $US21.3 million. But the bottom line was deep in the red and showed a $US35.3 million loss against a $US43.2 million profit previously.
The souring performance reflects the depressed state of major casino and gambling businesses in Asia and the US, forcing companies to slash the value of their assets in the face of a drop in consumer spending on gambling and entertainment.
For Mr Packer, it is a further blow to his ambitions in the region as he tries to broaden Crown's earnings base away from Australia — where the company owns Melbourne's Crown Casino and Burswood Casino in Perth — to the Asian region and North America. In 2006, soon after the death of his father, Kerry, James Packer forged a $US8.7 billion venture with Lawrence Ho's Melco casino group to create Melco Crown Entertainment. Mr Ho is the son of Macau gambling kingpin Stanley Ho.
Crown, then called Publishing and Broadcasting Ltd, took a post-listing 41.4 per cent equity share in the joint venture that was valued at $A4.73 billion when Melco Crown Entertainment stock began trading on Nasdaq and closed its first day at $US21.55.
Since then, Crown's stake in the joint venture has been diluted to 36.4 per cent while Melco Crown Entertainment shares have fallen to $US5.85.
At Crown's half-year financial report, chief executive Rowen Craigie said its share of Melco Crown Entertainment's normalised result for the half was an $A11.3 million loss. The venture's Altira Macau casino recorded $US183.6 million net revenue for the March quarter versus $US459.9 million for the same quarter last year.
Constellation Capital Management investment analyst Peter Chilton said yesterday the Macau casino market was having earnings problems similar to those of Las Vegas.
"It probably is under some pressure with a lot of new capacity and at the same time the actual business available has slowed down, because of the downturn in China," he said. "And we have seen it in the United States as well, where people are less willing to, and have less funds available, to put into casinos.
"Las Vegas is suffering as well. I think maybe people had thought of casinos as fairly recession-type-proof businesses but there is obviously a limit in a serious downturn — people do visit these establishments less, or spend less money."
Melco Crown Entertainment co-chairman and chief executive Mr Ho said City of Dreams was scheduled to open on June 1, and the budget was unchanged.
"Our financial position remains strong and our balance sheet is one of the best in the gaming industry," he said. "We held approximately $US755 million of cash, excluding cage cash, at the end of the first quarter, and we expect to spend approximately $US244 million on construction and pre-opening preparations at City of Dreams from the start of the current quarter through its opening."
Crown shares fell 2¢ to $6.97.
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(Credit: The Age)
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Wednesday, May 20, 2009
Crown moves to distance itself from Ho's run-in with US regulator, by Eli Greenblat - The Sydney Morning Herald - 21st May 2009
James Packer's Crown has played down the possibility of damage to its US growth aspirations after a powerful New Jersey gaming regulator classed the sister of its joint venture partner in Macau as an "unsuitable" business partner.
A confidential report by the New Jersey Division of Gaming Enforcement (DGE) has found that local casino operator MGM Mirage should be "directed to disengage" from its Macau joint venture partner, Pansy Ho, daughter of Asian gambling tycoon Stanley Ho. Among other things, the document highlighted compliance problems and deficient due diligence.
It represents the first adverse ruling against the second generation of the Ho family by a US state gaming body and might be used by other American jurisdictions to force a divestment by the clan of all of its US activities and partnerships.
News of the overnight findings sparked concerns that the contagion could also spread to Crown's billion-dollar tie-up with its Macau partner, Melco International.
Lawrence Ho, brother of Pansy, is the chief executive of Melco, which together with Crown forged a $US8.7 billion ($11.3 billion) casino business in 2006 called Melco Crown Entertainment to build a string of casinos and hotels.
But last night, Anthony Klok, the head of Crown's investor relations and director of its international business development, said the New Jersey investigation would not affect its dealings with Lawrence Ho or Crown's separate and independent operations in the US.
"It has no affect on us, our relationship with Lawrence or Melco … the Lawrence-Melco relationship has been approved in Australia and in Nevada some time ago," Mr Klok said.
He said when Crown sought approval for its purchase of the Cannery Casino Resorts business in the US for $US1.75 billion, it was fully investigated and cleared by Nevada gaming regulators. This would have included a review of Crown's associates, including Melco and Lawrence Ho.
The investigation into Ms Ho was kicked off in 2005 after MGM Mirage sought a renewal of its Borgata casino licence in Atlantic City which sub-sequently extended into a review of the $US1.25 billion MGM Grand Macau in which Ms Ho has a 50 per cent stake.
In a filing to the US Securities and Exchange Commission, the chief financial officer of MGM Mirage, Daniel D'Arrigo, said the DGE recommended that its partner be found to be unsuitable and MGM was directed to disengage itself from any association.
However, Mr D'Arrigo added that the report was merely a recommendation and was not binding on the New Jersey Casino Control Commission, which will have the final say. (Credit: The Sydney Morning Herald)
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A confidential report by the New Jersey Division of Gaming Enforcement (DGE) has found that local casino operator MGM Mirage should be "directed to disengage" from its Macau joint venture partner, Pansy Ho, daughter of Asian gambling tycoon Stanley Ho. Among other things, the document highlighted compliance problems and deficient due diligence.
It represents the first adverse ruling against the second generation of the Ho family by a US state gaming body and might be used by other American jurisdictions to force a divestment by the clan of all of its US activities and partnerships.
News of the overnight findings sparked concerns that the contagion could also spread to Crown's billion-dollar tie-up with its Macau partner, Melco International.
Lawrence Ho, brother of Pansy, is the chief executive of Melco, which together with Crown forged a $US8.7 billion ($11.3 billion) casino business in 2006 called Melco Crown Entertainment to build a string of casinos and hotels.
But last night, Anthony Klok, the head of Crown's investor relations and director of its international business development, said the New Jersey investigation would not affect its dealings with Lawrence Ho or Crown's separate and independent operations in the US.
"It has no affect on us, our relationship with Lawrence or Melco … the Lawrence-Melco relationship has been approved in Australia and in Nevada some time ago," Mr Klok said.
He said when Crown sought approval for its purchase of the Cannery Casino Resorts business in the US for $US1.75 billion, it was fully investigated and cleared by Nevada gaming regulators. This would have included a review of Crown's associates, including Melco and Lawrence Ho.
The investigation into Ms Ho was kicked off in 2005 after MGM Mirage sought a renewal of its Borgata casino licence in Atlantic City which sub-sequently extended into a review of the $US1.25 billion MGM Grand Macau in which Ms Ho has a 50 per cent stake.
In a filing to the US Securities and Exchange Commission, the chief financial officer of MGM Mirage, Daniel D'Arrigo, said the DGE recommended that its partner be found to be unsuitable and MGM was directed to disengage itself from any association.
However, Mr D'Arrigo added that the report was merely a recommendation and was not binding on the New Jersey Casino Control Commission, which will have the final say. (Credit: The Sydney Morning Herald)
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Sunday, May 17, 2009
PartyPoker.com Reissues Paris Hilton Challenge!
One Night In Paris? Here's One Night To Win A Bentley!
14th May 2009 -- http://www.partypoker.com has seen the recent news that Paris Hilton has had her beloved blue Bentley vandalized, with reports suggesting eggs were also thrown. It is not the only reported problem the heiress has had with her luxury four wheels as in April 2006 it was suggested that the multimillionaire had lost a Bentley Continental GT in a poker game. That month, PartyPoker.com offered her the chance to win her car back and now, more than three years later, the online poker room is repeating its offer! The rules are simple - she takes on poker legend Mike Sexton in a heads-up poker tournament for the chance to win a Bentley!
A PartyPoker.com spokesman said: “Forget one night in Paris, we’re offering her one night to win a replacement for her vandalized Bentley! Fortune may be on her side in many ways but when it comes to Bentleys it certainly doesn’t seem to be the case so we’re confident Mike Sexton would win.”
“We challenge her to take us up on the offer. Three years is a long time in showbusiness and we’re sure she’d jump at it now - it is a simple offer for the former Simple Life star. Following the original offer in 2006 the likes of Clonie Gowen also made public challenges to the heiress but so far Paris has resisted.”
“It is reported that in January this year Paris met Lady Gaga but she didn’t show the pop sensation her poker face. We encourage her to not walk on eggshells and show it to Mike Sexton instead!
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14th May 2009 -- http://www.partypoker.com has seen the recent news that Paris Hilton has had her beloved blue Bentley vandalized, with reports suggesting eggs were also thrown. It is not the only reported problem the heiress has had with her luxury four wheels as in April 2006 it was suggested that the multimillionaire had lost a Bentley Continental GT in a poker game. That month, PartyPoker.com offered her the chance to win her car back and now, more than three years later, the online poker room is repeating its offer! The rules are simple - she takes on poker legend Mike Sexton in a heads-up poker tournament for the chance to win a Bentley!
A PartyPoker.com spokesman said: “Forget one night in Paris, we’re offering her one night to win a replacement for her vandalized Bentley! Fortune may be on her side in many ways but when it comes to Bentleys it certainly doesn’t seem to be the case so we’re confident Mike Sexton would win.”
“We challenge her to take us up on the offer. Three years is a long time in showbusiness and we’re sure she’d jump at it now - it is a simple offer for the former Simple Life star. Following the original offer in 2006 the likes of Clonie Gowen also made public challenges to the heiress but so far Paris has resisted.”
“It is reported that in January this year Paris met Lady Gaga but she didn’t show the pop sensation her poker face. We encourage her to not walk on eggshells and show it to Mike Sexton instead!
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Friday, May 15, 2009
Second high-roller deal for Crown casino, by Michael Warner - Herald Sun - 16th May 2009
EXCLUSIVE: CROWN casino has hit the jackpot for the second time this week.
The state's gambling watchdog revealed it had given preliminary approval for Crown to expand its rich high-roller Mahogany Room.
It comes just days after Premier John Brumby announced the casino would be granted an extra 150 gaming tables in a sweetheart deal with its billionaire owner, James Packer.
The Mahogany Room expansion will see a new VIP facility built above the Crown Towers driveway at the casino's eastern end.
High-stakes roulette, blackjack and baccarat tables will cater for bets of up to $280,000.
And smoking will also be permitted under special international exemptions, despite the vast majority of patrons hailing from Victoria.
"We've told them (Crown) that, based on how they've described it to us, we see no impediment to it proceeding," Victorian Commission for Gambling Regulation chief Peter Cohen said.
"They've sought some boundary changes to the room."
Mr Cohen revealed sections of the casino's public gaming floors were also set to increase.
But a spokeswoman for Gaming Minister Tony Robinson said last night the two rulings were unrelated.
"I've just had a few more discussions, and my understanding is that all of this is at very preliminary stages between Crown and the VCGR. And so at this point, the minister has not been formally advised of any expansion of the Mahogany Room," Rebecca Harrison said.
Mr Brumby revealed on Tuesday - just hours before the handing down of the federal Budget - that he had handed Crown 150 new tables in exchange for higher tax on the casino's poker machines.
He defended the timing of the announcement and rejected criticism that he had tried to hide the deal.
But sources suggested the agreement was signed more than 10 days ago, and its announcement delayed until Budget day.
Mr Brumby admitted to private discussions with Mr Packer at a taxpayer-funded suite at the Albert Park Grand Prix six weeks ago.
He initially refused to detail the discussions, claiming they were private, but has since said they talked about Tiger Woods' visit to Melbourne in November and not the lucrative casino deal.
Mr Packer described the talks as "casual" and unrelated to the arrangement. (Credit: Herald Sun)
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The state's gambling watchdog revealed it had given preliminary approval for Crown to expand its rich high-roller Mahogany Room.
It comes just days after Premier John Brumby announced the casino would be granted an extra 150 gaming tables in a sweetheart deal with its billionaire owner, James Packer.
The Mahogany Room expansion will see a new VIP facility built above the Crown Towers driveway at the casino's eastern end.
High-stakes roulette, blackjack and baccarat tables will cater for bets of up to $280,000.
And smoking will also be permitted under special international exemptions, despite the vast majority of patrons hailing from Victoria.
"We've told them (Crown) that, based on how they've described it to us, we see no impediment to it proceeding," Victorian Commission for Gambling Regulation chief Peter Cohen said.
"They've sought some boundary changes to the room."
Mr Cohen revealed sections of the casino's public gaming floors were also set to increase.
But a spokeswoman for Gaming Minister Tony Robinson said last night the two rulings were unrelated.
"I've just had a few more discussions, and my understanding is that all of this is at very preliminary stages between Crown and the VCGR. And so at this point, the minister has not been formally advised of any expansion of the Mahogany Room," Rebecca Harrison said.
Mr Brumby revealed on Tuesday - just hours before the handing down of the federal Budget - that he had handed Crown 150 new tables in exchange for higher tax on the casino's poker machines.
He defended the timing of the announcement and rejected criticism that he had tried to hide the deal.
But sources suggested the agreement was signed more than 10 days ago, and its announcement delayed until Budget day.
Mr Brumby admitted to private discussions with Mr Packer at a taxpayer-funded suite at the Albert Park Grand Prix six weeks ago.
He initially refused to detail the discussions, claiming they were private, but has since said they talked about Tiger Woods' visit to Melbourne in November and not the lucrative casino deal.
Mr Packer described the talks as "casual" and unrelated to the arrangement. (Credit: Herald Sun)
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Thursday, May 14, 2009
Media Man Brands Blog: Online News, Digital News and Digital Business
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Classic Slots Online - Most Popular Classic Slot Games
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Tuesday, May 12, 2009
Crown expansion plan draws fire from critics, by Sarah-Jane Collins and Jason Dowling - The Sydney Morning Herald - 13th May 2009
Crown Casino has been granted its biggest expansion in gambling capacity since opening at its Southbank location more than a decade ago, in a deal attacked yesterday by campaigners for responsible gaming.
The casino, now one of the biggest in the world, will be able to increase its number of gambling tables by more than 40 per cent to 500 tables.
"Clearly the casino is being treated as the primary and first citizen of the state, with privileges that are really a cosy deal without the rest of the community having any say," the Reverend Tim Costello said.
The Victorian Gaming Minister, Tony Robinson, said the Government had agreed with Crown to alter their licence agreement to allow for 150 extra gaming tables and an expansion of the gaming floor. In exchange, Crown will pay about 10.5 per cent extra in poker machine taxes, bringing it into line with other pokie machine operators across Victoria. The increase will be implemented in 1.7 per cent increments over six years.
"This is bringing the tax that they pay on their poker machines up to the level that is paid by other entities across the state, so it's a good deal for taxpayers," Mr Robinson said.
He said allowing the expansion would ensure Crown remained the first choice casino destination in Australia.
"If people ultimately want to have the boiled sweets experience of casinos, let them go to Sydney. If they want the rolled gold dark chocolate experience they're going to keep coming to Melbourne and we're going to ensure that."
Gary O'Neill, from Crown Casino, said the deal meant Crown would be able to keep up with growing rivals in Macau and Singapore. "The new mega complexes are very big. They will be very competitive and they will compete for the tourist dollar in this part of the world."
Mr O'Neill said the gaming floor at Crown would expand but final approval for an expansion rests with the Victorian Commission for Gambling Regulation.
Mark Zirnsak, from the Interfaith Gambling Taskforce described the expansion as appalling. "This, coming at a time when there's a global financial crisis, it's going to push more Victorians into being in hardship and vulnerable," he said.
Dr Zirnsak said the deal pointed to the "very cosy relationship between the Government and Crown".
"There's been no consultation on this expansion, which we believe there should have been, and the timing is indeed appalling," he said.
He said Crown did not need an expansion to remain competitive. "They've got a monopoly [in Victoria] and most of their patrons aren't millionaires flying in from overseas. They are locals," he said.
But he said he supported the increase in pokies taxes.
The Opposition's gaming spokesman, Michael O'Brien, said Mr Robinson had waited until budget day to announce the deal in an attempt to bury a bad decision. "Labor is clearly embarrassed by this gambling boost and tax grab, as it should be." (Credit: The Sydney Morning Herald)
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The casino, now one of the biggest in the world, will be able to increase its number of gambling tables by more than 40 per cent to 500 tables.
"Clearly the casino is being treated as the primary and first citizen of the state, with privileges that are really a cosy deal without the rest of the community having any say," the Reverend Tim Costello said.
The Victorian Gaming Minister, Tony Robinson, said the Government had agreed with Crown to alter their licence agreement to allow for 150 extra gaming tables and an expansion of the gaming floor. In exchange, Crown will pay about 10.5 per cent extra in poker machine taxes, bringing it into line with other pokie machine operators across Victoria. The increase will be implemented in 1.7 per cent increments over six years.
"This is bringing the tax that they pay on their poker machines up to the level that is paid by other entities across the state, so it's a good deal for taxpayers," Mr Robinson said.
He said allowing the expansion would ensure Crown remained the first choice casino destination in Australia.
"If people ultimately want to have the boiled sweets experience of casinos, let them go to Sydney. If they want the rolled gold dark chocolate experience they're going to keep coming to Melbourne and we're going to ensure that."
Gary O'Neill, from Crown Casino, said the deal meant Crown would be able to keep up with growing rivals in Macau and Singapore. "The new mega complexes are very big. They will be very competitive and they will compete for the tourist dollar in this part of the world."
Mr O'Neill said the gaming floor at Crown would expand but final approval for an expansion rests with the Victorian Commission for Gambling Regulation.
Mark Zirnsak, from the Interfaith Gambling Taskforce described the expansion as appalling. "This, coming at a time when there's a global financial crisis, it's going to push more Victorians into being in hardship and vulnerable," he said.
Dr Zirnsak said the deal pointed to the "very cosy relationship between the Government and Crown".
"There's been no consultation on this expansion, which we believe there should have been, and the timing is indeed appalling," he said.
He said Crown did not need an expansion to remain competitive. "They've got a monopoly [in Victoria] and most of their patrons aren't millionaires flying in from overseas. They are locals," he said.
But he said he supported the increase in pokies taxes.
The Opposition's gaming spokesman, Michael O'Brien, said Mr Robinson had waited until budget day to announce the deal in an attempt to bury a bad decision. "Labor is clearly embarrassed by this gambling boost and tax grab, as it should be." (Credit: The Sydney Morning Herald)
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Sunday, May 10, 2009
Chinese gambler scoops jackpot, threatens lawsuit: - 9th May 2009
HONG KONG (AFP) — A Chinese businesswoman who has blown 6.8 million US dollars in the gaming haven of Macau in two years, scooped a slot machine jackpot just as she was threatening to sue the casino, a report said Thursday.
The woman won a five million Hong Kong dollar (640,000 US) slot machine payout on Monday at the Wynn Macau, part of the gaming empire of US tycoon Steve Wynn, the Standard newspaper reported.
It was the second-highest slot machine payout in Macau's history, the report said.
Her win came a day after she threatened to sue Wynn Macau over the huge sum she has lost on slot machines since 2007. She claims that payout rates on the machines are too low, the English language daily said.
The woman, from the eastern Zheijiang province, was also unhappy because Wynn staff refused to let her, family and friends play 20 machines at the same time in a calculated attempt to beat the odds.
The report said the woman, who it described as a self-proclaimed billionaire, had insisted she was not addicted to gambling.
Despite the payout, the woman has threatened to continue her legal battle, the Standard added.
Macau has become a gambling paradise in recent years, with massive casinos springing up across the former Portuguese colony, helping the city overtake Las Vegas in terms of gaming revenue.
But income has been battered as visa restrictions placed by Beijing on Chinese visitors have stopped many of the biggest gamblers entering the territory, the only place in China where casino gambling is allowed.
A spokeswoman from Wynn Macau confirmed that a woman had won a substantial sum on the slot machines earlier this week, two days after a weekend dispute with one of the casino directors about how to use the slot machines.
The spokeswoman would not confirm if the woman had previously made large gambling losses and insisted it used state-of-the-art machines which were constantly maintained.
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The woman won a five million Hong Kong dollar (640,000 US) slot machine payout on Monday at the Wynn Macau, part of the gaming empire of US tycoon Steve Wynn, the Standard newspaper reported.
It was the second-highest slot machine payout in Macau's history, the report said.
Her win came a day after she threatened to sue Wynn Macau over the huge sum she has lost on slot machines since 2007. She claims that payout rates on the machines are too low, the English language daily said.
The woman, from the eastern Zheijiang province, was also unhappy because Wynn staff refused to let her, family and friends play 20 machines at the same time in a calculated attempt to beat the odds.
The report said the woman, who it described as a self-proclaimed billionaire, had insisted she was not addicted to gambling.
Despite the payout, the woman has threatened to continue her legal battle, the Standard added.
Macau has become a gambling paradise in recent years, with massive casinos springing up across the former Portuguese colony, helping the city overtake Las Vegas in terms of gaming revenue.
But income has been battered as visa restrictions placed by Beijing on Chinese visitors have stopped many of the biggest gamblers entering the territory, the only place in China where casino gambling is allowed.
A spokeswoman from Wynn Macau confirmed that a woman had won a substantial sum on the slot machines earlier this week, two days after a weekend dispute with one of the casino directors about how to use the slot machines.
The spokeswoman would not confirm if the woman had previously made large gambling losses and insisted it used state-of-the-art machines which were constantly maintained.
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