Weekend Conversation Corner – October, 30

Welcome to the newest instalment of our Focus Gaming News Weekend Conversation Corner, your concise guide to the week’s most compelling headlines that have captivated global attention. We aim to distil the past week’s dynamic events into a clear and impactful summary, highlighting the pivotal stories that have influenced the discourse, shaped policy, and sparked widespread discussion. Join us as we cut through the noise to deliver a concise overview of the week’s crucial developments, ensuring you’re fully informed on what truly counts in our fast-moving world.

Stay informed, stay inspired, and keep gaming on. And have a wonderful weekend ahead!

MGM sets out final US$2bn funding plan for MGM Osaka

MGM Resorts International will invest an additional JPY150bn-JPY160bn (US$950m-US$1bn) annually in MGM Osaka during 2027 and 2028, adding to the JPY114bn (US$722m) already invested. These payments will be financed primarily through available cash and free cash flow, with potential yen-denominated financing. The project is fully funded via MGM, ORIX Corporation, and a senior credit facility. Construction is 11 per cent complete, with approximately 70 per cent of foundation piles finished and structural steel work progressing. MGM continues to target a 2030 opening for the integrated resort. This significant investment will influence MGM’s capital allocation decisions, including its share repurchase program, though repurchases are still intended. The development is expected to open with relatively low leverage of approximately 2x.

PAGCOR net income drops 84.85% in nine months

The Philippine Amusement and Gaming Corporation (PAGCOR) reported a significant financial decline in the first nine months of 2026. Revenue fell 23.41% year-on-year to PHP64.41bn (US$1.01bn), primarily due to a 37.23% drop in electronic gaming earnings, its largest revenue source. Net income plummeted 84.85% to PHP2.17bn (US$34m), partly attributed to increased remittance obligations, including PHP3.01bn to the Philippine Sports Commission (PSC). Despite lower earnings, PAGCOR contributed PHP45.28bn (US$709m) to government programmes and statutory obligations. This included PHP27.61bn (US$433m) to the National Treasury, representing the government’s 50% share, alongside other contributions.

Australia’s Star Entertainment fined US$183m for AML breaches

Australia’s Federal Court has fined The Star Entertainment Group AU$260m (US$183m) for widespread anti-money laundering and counter-terrorism financing failures at its Sydney and Gold Coast casinos. Justice Cameron Moore imposed penalties of AU$195m on The Star Sydney and AU$65m on The Star Queensland following civil proceedings by the Australian Transaction Reports and Analysis Centre (AUSTRAC).

The court found breaches from November 2016 to November 2022, including inadequate compliance, failure to verify customer funds, and insufficient monitoring of high-risk gamblers, with transactions involving unidentified third parties. Star continued to accept funds despite evidence of links to criminal activity, undermining law enforcement. AUSTRAC chief executive **Brendan Thomas** stated the ruling reinforces gambling operators’ obligations. This penalty follows AU$200m in previous fines and ongoing regulatory supervision. The AU$260m is payable in four instalments over 19 months.

The Star returns to positive EBITDA as Sydney and Gold Coast grow

The Star Entertainment Group reported improving Q1 FY27 results, achieving AU$12m in Group EBITDA, a significant turnaround from a AU$13m loss year-on-year. Consolidated revenue rose 2 per cent to AU$284m, driven by strong performance at its owned casinos. The Star Sydney and The Star Gold Coast generated combined revenue of AU$279m, up 5 per cent, with The Star Gold Coast notably increasing revenue by 12 per cent and EBITDA by 92 per cent. The Star Brisbane also saw revenue growth. Despite this financial improvement and cost reductions, material uncertainties persist due to ongoing regulatory challenges. The Star Sydney’s casino licence remains suspended, and the deferral of the suspension of The Star Gold Coast’s casino licence is extended, highlighting continued scrutiny and the need for strategic review.

Hokkaido sits out Japan’s 2027 IR bid, eyes a possible 2030 round

Hokkaido prefecture has reportedly decided against submitting an application for an Integrated Resort (IR) licence during Japan’s 2027 national government selection window (May 6 to Nov 5). Authorities cited time constraints, as preparing the basic IR concept and selecting an operator could take over 2.5 years, making the November 2027 deadline unfeasible. Consequently, Hokkaido may instead target a potential third national application window, which industry observers expect around 2030. Japan can award up to three commercial casino licences, but only MGM Osaka was approved initially. Hokkaido had shelved its plans in late 2019 due to environmental concerns and time. The prefecture continues to assess economic benefits, with development procedures proceeding without a specific timeline.