Macau Chief Executive, who presided over gaming license re-tendering, to step down, citing health

Macau

AGBrief Editorial

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August 21, 2024

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Macau Chief Executive, who presided over gaming license re-tendering, to step down, citing health

Macau’s Chief Executive, Ho Iat Seng, has publicly announced that he is not going to be seeking a second term in office, in a historical first for the gaming hub.

In a statement published via Macau’s Government Information Bureau, it notes that Ho Iat Seng ‘would not participate in the election for the sixth-term Chief Executive’.

This would be the first time that a Chief Executive in Macau has not sought re-election, following two terms of Macau’s first Chief Executive Edmund Ho and two terms by Chui Sai On.

Fernando Chui Sai On, Macau — _{Edmund Ho}

The official noted that he would not be seeking re-election “due to the fact that my health has not been fully restored”.

The official had been out of the public eye recently due to his health issues, with speculation that he would not be running for a second five-year term.

Ho Iat Seng was lauded by the local population due to his response to the COVID pandemic, which shuttered the city for three years.

Ho was instrumental in Macau’s closing of its borders, shuttering of casinos and strict regulations regarding testing, vaccination, and movement in the city.

He also presided over the re-tendering of the city’s casino licenses, encouraging strict guidelines for non-gaming investments which mandate that the six gaming licensees effectively hold the responsibility of Macau’s diversification away from strictly gaming revenues.

In his statement, the SAR’s top official noted that “The fifth Macao SAR Government and I planned to promote Macao’s diversified development, strove to build a new pattern of Macao’s development and reshaped Macao’s new competitive advantages under the concept of “unity and efforts, change and innovation”.

He noted that he would not be running “for the sake of Macao’s long-term development and from the perspective of the overall situation”.

Ho Iat Seng noted that he “will fully support” the next Chief Executive and the SAR government.

In a note late on Wednesday, Seaport Research Partners’ Vitaly Umansky noted that “we do not expect any material changes to the gaming industry resulting from a new chief executive”. The Senior Analyst notes that “status quo will likely be the main driver of the new Chief Executive”.

Speculation has abounded regarding who would step up to assume the Chief Executive position, with the most talked-about potential candidate being the President of the Court of Final Appeal, Justice Sam Hou Fai.

Umansky indicates that “the most likely individual to take the role will be fully vetted and approved by the Chinese government and most likely will come into office with strong Macau government experience and an understanding of the importance of the gaming and hospitality industry to the economic well-being and future development of Macau”.

The elections for the top role are expected to take place in mid-October.

Dmitry Volkov, CRO at NuxGame, said: “We are always seeking to incorporate the most innovative and impactful tools from across the industry. With our new integration from Gamzix, operators now have access to cutting-edge resources designed to boost retention rates and maximize profitability.”

Lida Kosohova, CСO at Gamzix said: “This collaboration is a significant step forward for both our companies, as it allows us to combine our strengths and deliver an exceptional gaming experience to our partners.”

Speaking of the new anti-fraud initiative, a PJ representative indicated that “fraud prevention is the fundamental task for us, and thus by working with stakeholders like Binance, we look forward to helping the public to enhance their ability to identify and respond to potential risks in their daily lives.”

Tomohiro made waves when he split with his father in 2017, with Kazuo ousted from the board of Okada Manila. The divide was deepened after Kazuo instigated a hostile takeover of Okada Manila in May of 2022 – with a court ruling confirming his proper removal from his roles as CEO, Chairperson, director and shareholder of the operating company of the integrated resort: Tiger Resort, Leisure and Entertainment (TRLEI).

Tomohiro is currently a director of the parent company of Universal Entertainment, Okada Holdings.

In its Tuesday statement, Universal Entertainment noted that the group was proposing the election ‘in order to further strengthen the Company’s business activities in Japan and overseas’.

In the same notice, the group informed that it was proposing dismissal of Jun Fujimoto as Director, referencing a shareholders suit against Fujimoto which claimed compensation for damages over breaches of his ‘fiducial duty or duty of loyalty as a director’ – as ruled by the Tokyo High Court.

The company noted that ‘it is appropriate to dismiss Mr. Jun Fujimoto from his position as a director of the Company in order to ensure thorough compliance and maintain a sound governance of the Company’.

Fujimoto resigned as president of Universal Entertainment in April, after the drawn-out lawsuit which commenced in August of 2019. It’s alleged that he pushed the company to transfer up to $43.5 million out of Universal Entertainment without proper justification and without adhering to internal decision-making procedures.

Universal Entertainment had announced the special board meeting to dismiss the former CEO in July of this year.

The ACMA can take action against services that provide prohibited gambling options, such as online casinos and slot machines, to Australian customers. It can also target unlicensed online betting services that lack a valid Australian license and those advertising prohibited or unlicensed gambling services.

Since the ACMA began its blocking efforts in November 2019, it has successfully blocked 1,026 illegal gambling and affiliate websites.

Additionally, over 220 illegal services have withdrawn from the Australian market due to stricter enforcement of offshore gambling regulations.

The ACMA has warned consumers to be cautious of services that seem legitimate, as they often lack important consumer protections.

Good morning. It’s good to know somebody’s got your back. That’s exactly what analysts are predicting for Resorts World Las Vegas, stating that its parent company – Malaysia’s Genting Berhad – will provide ‘extraordinary support’ to the operator in resolving its issues with the Nevada gaming regulator. Meanwhile, regulators in Australia continue on the warpath against betting adverts, leveling a record fine at online gaming operator PlayUp Interactive for promoting gambling inducements.

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This follows a disciplinary complaint filed by the Nevada gaming regulator against RWLV, its parent company, and affiliates. The complaint accuses the company of failing to fulfill its responsibilities as a holder of a privileged Nevada gaming license by allowing individuals with suspected or known ties to illegal activities to gamble on its premises.

In a non-rating commentary, S&P highlighted that the Genting group has over five decades of experience in gaming operations across various jurisdictions. The group also holds strategic importance in expanding its presence in the US gaming market. S&P expects RWLV to collaborate with regulators to address and resolve the issues raised.

RWLV’s current BB+ rating with a stable outlook reflects its highly strategic importance within the Genting group. S&P believes that RWLV will receive extraordinary support from Genting Bhd under almost any foreseeable circumstances.

The stable outlook for RWLV aligns with that of its parent company, reflecting expectations of ‘stable operating performance’. The rating agency also anticipates that RWLV’s market position will help maintain a funds-from-operations-to-debt ratio above 30 percent over the next two years.

Regarding the complaint, the report mentions that possible penalties include monetary fines and actions against the gaming licenses of the ownership and property operators.

In January 2024, MGM Grand and The Cosmopolitan, both Las Vegas casinos, agreed to pay a total of $7.45 million to settle charges involving alleged violations of AML laws and the Bank Secrecy Act.

This complaint also comes after the departure of former RWLV President and Chief Operating Officer Scott Sibella in September 2023. Sibella pleaded guilty on January 24th, 2024, to violating AML laws at MGM Grand, where he served as president until February 2019. He joined RWLV afterward.

Macau’s Chief Executive, Ho Iat Seng, has publicly announced that he is not going to be seeking a second term in office, in a historical first for the gaming hub.

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The world’s largest cryptocurrency exchange, Binance, is expanding an anti-scam campaign to the world’s largest casino hub, Macau.

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The parent company of Okada Manila, Universal Entertainment, has announced that the son of its ousted founder Tomohiro Okada is up for election as a Director of its board and that it plans to dismiss its former CEO from his directorship role.

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The Australian Communications and Media Authority (ACMA) has ordered internet service providers (ISPs) to block four more illegal gambling and affiliate marketing websites that violate the Interactive Gambling Act of 2001.

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What you need to know

On the radar

PENALTIES

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Industry Updates

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Resorts World Las Vegas (RWLV) is expected to receive ‘extraordinary support’ from its parent company, Malaysia’s Genting Bhd, according to S&P Global Ratings.

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Wynn Resorts has announced the internal appointment of Max Tappeiner to the role of President of Wynn Al Marjan Island, the group’s property currently under development in the United Arab Emirates (UAE).

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