Macau

MGM China CEO Grant Bowie said the company is open to dialogue with the Macau government on how operators in the gambling hub can be responsible for imported workers’ accommodation and transport, local media reported.

Wynn Resorts said it has almost doubled its budget cap for design services for its Wynn Palace resort and for upgrades at Wynn Macau.
The original cap this year for design services was the higher of HK$78.8 million, or US$10.1 million. That has now been deemed to be insufficient and will rise to the higher of HK$156.0 million, or US$20.0 million.
The company said the increase reflects the prevailing costs in Macau and also the fact that the size and the scope of the Wynn Palace resort had not been determined when the budget was originally set in 2011.

About 84 percent of visitors to Macau are satisfied with the gaming properties, up two percent, and spending up to 17 percent more per visit from the previous quarter a Macau government survey shows. 

The Visitor Expenditure Survey by the Information from the Statistics and Census Service indicated that total visitor spending, excluding gaming, reached $2.04 billion (MOP16.3 billion) in the second quarter of 2014. Spending by overnight visitors totaled MOP13.8 billion while same-day visitors spent MOP2.5 billion, up by 18 percent and 12 percent respectively year-on-year.

Galaxy Entertainment Group posted record H1 revenue and earnings, driven by strong growth in both the VIP and mass market sectors and said the next stage in its Cotai developments remain on schedule.
Revenue rose 25 percent year-on-year to $38.4 billion, while adjusted EBITDA rose 26 percent to $7.3 billion. Net profit attributable to shareholders also hit a record of $6.0 billion, up 29 percent year-on-year. The results were in line with expectations, according to UBS.

Macau’s gross gaming revenue has continued to decline in the first two weeks of August, with the run rate down 1.5 percent year-over-year to MOP30.3 billion ($3.8 billion), including slot assumptions, according to Sterne Agee checks. From Aug. 1 to Aug. 17 table-only GGR was MOP15.9 billion ($2 billion).
The firm said its August outlook remains unchanged for a range between a decline of 3 percent to a gain of 2 percent.

Details have emerged of claims made by Taiwan prosecutors that a Melco Crown subsidiary violated foreign exchange controls by transferring $192 million between Taiwan and Macau, newswire G3 reports.
The Taipei District Prosecutors Office said the Taipei branch of MCE International channelled the funds for high-rollers to use at the company’s City of Dreams and Altira properties in Macau.

Sands China CEO Ed Tracy has played down concerns about the impact of a smoking ban and an anti-corruption drive in Macau, the world’s biggest gambling hub.
In an interview on CNBC’s Squawk Box, Tracy said he expects a positive year, despite recent figures showing a decline in gross gambling revenue for both June and July as the World Cup distracted gamblers.

Sands China posted an all-time half year record of US$1,737.4 million (HK$13,467.1 million) of adjusted EBITDA, an increase of 35.7 per cent over the first half of 2013. Total net revenues increased 24.7 per cent to US$5,075.3 million (HK$39,340.2 million) while profits increased 45.7 per cent to US$1,370.4 million (HK$10,622.4 million), the company told the stock exchange.  

The company points to the success of leveraging its integrated resort business model at the Cotai Strip, developing it as a gaming, leisure and convention destination.

Macau Chief Executive candidate, incumbent Chui Sai On, says the government will see how to make gaming operators responsible for their non-local workers' accommodation and transportation arrangements as part of his political platform announcement, local press reported. "To study an arrangement to spell out the social responsibility and role that should be adopted by the gaming corporations namely in what regards accommodation and transportation for non-resident workers", Mr. Chui said, TDM reported.

Global gaming equipment supplier IGT and LT Game, a subsidiary of Paradise Entertainment Limited, are joining forces to expand distribution in Macau and North America, in a three-year agreement. Under the terms of the agreement, IGT will distribute LT Game's live and electronic table game systems in the United States and Canada, while LT Game will serve as distributor for IGT's slot machines in Macau.

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