Weekend Conversation Corner – June, 13
Welcome to the most recent installment of our Focus Gaming News Weekend Conversation Corner, where we delve into the week’s top headlines that have captured global interest. We will condense the whirlwind of events into a focused summary, highlighting the key stories that have molded the narrative, impacted policies, and sparked conversations. Join us as we cut through the noise to provide a concise overview of the week’s significant developments, keeping you informed on what truly counts in today’s fast-paced world.
Stay informed, stay motivated, and keep gaming on. Wishing you a fantastic weekend ahead!
Study suggests closure of Macau satellite casinos will negatively impact property values
Realtor Jones Lang LaSalle predicts that the closure of satellite casinos in Macau by the end of the year will negatively impact the value of related properties and surrounding commercial real estate. The agency’s senior manager, Mark Wong, highlighted that the rental income per square foot will significantly drop, leading to a decrease in property valuation. The government announced that 11 satellite casinos will close, with gaming concessionaires agreeing to compensate affected employees. However, concerns have been raised about the reassignment of around 5,600 workers who may lose their jobs. Lawmaker Ella Lei emphasized the need for the government to ensure that gaming companies prioritize hiring the affected workers. The effects of the closures are expected to extend into early next year.
New South Wales lacks targets on gambling harm, audit office says
The Audit Office of New South Wales found that the Independent Liquor and Gaming Authority and the Department of Creative Industries, Tourism, Hospitality, and Sport regulate gaming machines but do not effectively support harm minimization. The audit identified weaknesses in data on compliance and enforcement activities, with a lack of clear targets for reducing harm related to gaming machines. The report recommended increasing focus on harm minimization outcomes and ensuring the gaming machine forfeiture scheme achieves its objectives. Despite a law to reduce gaming machines since 2001, their numbers have actually increased. Currently, there are 87,789 gaming machines in Australia, with more than half located at the Star Casino in Sydney. The government abandoned plans to phase out 9,500 gaming machines following recommendations from an independent panel on gambling policy.
CNMI Senate vice president questions order to abolish Commonwealth Casino Commission
Karl King-Nabors, Vice President of the Northern Mariana Islands Senate, criticized Governor Arnold I. Palacios’s order to dissolve the Commonwealth Casino Commission (CCC) and transfer its functions to the Lottery Commission. King-Nabors argued that this move oversteps the legislative branch’s authority and violates the constitution. He emphasized the need for legislative action to amend statutory frameworks and maintain checks and balances. The executive order, if not modified or disapproved by a majority of lawmakers, will take effect in sixty days. Governor Palacios defended the decision, citing economic hardships and the prolonged closure of Imperial Pacific International’s casino. King-Nabors urged lawmakers to carefully review the order’s implications on the government’s structure and legal risks.
S&P Global changes Universal Entertainment outlook from stable to negative
S&P Global Ratings has changed Universal Entertainment’s outlook from stable to negative, affirming its non-investment grade ratings. The company’s performance in gaming and casino businesses fell short, leading to a potential deterioration in financial condition. Risks are associated with new pachinko machine compliance. The company aims for recovery through new models but may face challenges if they fail compliance tests. Okada Manila’s earnings are expected to see only modest improvement due to slow tourism growth and increased competition. Steps are taken to enhance non-gaming activities and reduce costs. Earnings for the first quarter declined, with a decrease in net sales and operating profit. The company faces challenges in the amusement equipment business, with a decrease in sales volume leading to an operating loss.
Macau satellite casinos to shut by year-end, government says
The government of Macau has announced the closure of 11 satellite casinos by the end of the year, affecting around 5,600 local employees. SJM Resorts, Melco Resorts, and Galaxy Entertainment Group have agreed to compensate affected employees and ensure their continuous employment. SJM Resorts plans to acquire properties for two casinos and offer job opportunities to all affected employees within their portfolio. The government will provide full assistance to the affected employees and monitor the situation to protect their rights and interests. Negotiations for property acquisitions and employee reassignments are ongoing to mitigate the impact of the casino closures on local employment in Macau.
Sri Lanka Central Bank warns junkets not addressed in Gambling Regulatory Authority bill
The Central Bank of Sri Lanka and the Financial Intelligence Unit raised concerns about the lack of detail on junket operators in the draft bill for the Gambling Regulatory Authority Act. The bill does not address taxation or regulation of junket activity, posing risks for local operators and gaps in anti-money laundering enforcement. If approved, the Act would modernize existing ordinances and establish a new regulator overseeing all gambling activities, including online gambling and operations in the Colombo Port City. City of Dreams Sri Lanka recently opened Phase I in Colombo, with Phase II expected to open later this year. Bluehaven Services, a subsidiary of Melco Resort, holds a 20-year license for the project.
