Australian gaming operator The Star Entertainment Group Limited says that it has not yet received or been informed of the contents of the most recent inquiry over its Sydney operations.
The NSW Independent Casino Commission (NICC) revealed on 31st of July that it had received the final report from a second independent inquiry into The Star Sydney, marking the formal conclusion of the inquiry initiated in February.
The gaming regulator noted Adam Bell SC had presented the report to NICC Chief Commissioner Philip Crawford on Wednesday.
‘The NICC will now consider the contents of the report before it is made public. The NICC’s response to Mr Bell SC’s findings will be communicated in due course’, informed the regulator.
The findings and recommendations within will be crucial in determining the future operations and regulatory measures for The Star’s Sydney casino.
In a recent article, newspaper The Australian alleged that the inquiry into The Star Entertainment Group has determined that the company is still not fit to independently manage its Sydney casino.
The article states that despite six months of remediation efforts, significant progress has not been made since the company was initially deemed unsuitable in October 2022.
The inquiry, led by Caspar Conde and overseen by Adam Bell, SC, was said to have emphasized the necessity for continued external oversight. The final report could lead to further actions, potentially including the casino’s permanent closure
In a reply to media reports today, The Star argued that it has not yet received or been informed of the report’s contents.
‘The company’s board chairman, Anne Ward, emphasized that they are awaiting the NICC’s decisions and will respond accordingly’, the announcement noted.
The operator recently announced that its Chief Risk Officer Scott Saunders has tendered his resignation, about one and a half years since his appointment.
The company has seen a raft of executive changes recently, having announced the appointment of a new group CEO and Managing Director last month, with the group’s Chairman – David Foster – resigning, following the resignations of CEO Robbie Cooke and CFO Christina Katsibouba in the first quarter.
The group has also been the target of speculation regarding a potential takeover, and of an Australian Stock Exchange (ASX) price query after a sudden share price hike.
MGM Resorts International underscored substantial growth and strategic developments in the Asian market, with the group’s CEO, Bill Hornbuckle, revealing he will travel to Thailand next month together with MGM China’s executive director, Pansy Ho, to assess its market potential.
“That is a venture that we’re interested in. And if we do that, we’ll do it through MGM China Holdings”, Hornbuckle commented in MGM’s second-quarter conference call.
In the previous quarter, the MGM Resorts President and CEO had stated that the cost of doing business in Thailand and the estimated margins would make the possible future gaming market “very compelling”.
In the most recent conference call, Jonathan S. Halkyard, Chief Financial Officer, detailed the financial achievements of MGM China, stating, that “in Macau, MGM China net revenues grew 37 percent year-over-year, achieving a market share of 16 percent”.
This robust performance resulted in adjusted property EBITDAR of $294 million for the quarter, reflecting a 40 percent increase with margins at 29 percent.
Halkyard emphasized the company’s efforts to fortify MGM China’s financial position, including the issuance of $500 million notes due 2031 to pay down outstanding borrowings, enhancing their balance sheet’s strength.
Meanwhile, Hornbuckle also provided updates on the company’s international projects, particularly its MGM Resorts/Orix consortium project in Osaka.
Osaka IR
“I just recently returned from Japan and it’s moving along nicely. We are in the ground as we speak, and we hope to start pylons by May or June of next year with a target state still middle of 2030 for opening”, he said.
Hornbuckle also highlighted MGM’s strategic positioning in the UAE and ongoing progress in New York, with notable developments expected in Dubai and anticipated submissions for the New York project by the end of 2025.
“With the UAE, I think the great news is now that they’ve announced the lottery, which is something that they say we’d do. I’m encouraged that the rest of this will roll out as defined,” Hornbuckle commented.
The United Arab Emirates (UAE) General Commercial Gaming Regulatory Authority (GCGRA) launched its official website and issued its first federal lottery license this week.
“Now the timing is still unknown. It kind of keeps moving around. But I can’t imagine by the end of this quarter or early next – we won’t know with some specificity, around what it means for Abu Dhabi and then potentially what the umbrella language is as it relates to all of the other Emirates. We’re excited by it.”
MGM is developing a non-gaming resort in Dubai, the UAE’s largest city, with three hotel towers totaling 1,500 rooms branded under the Aria, MGM Grand and Bellagio names.
The MGM CEO indicated the group is “excited” by its positioning in Dubai. ”We’re driving pylons right now. And that facility has accommodation for a large-scale casino”.
“So there’s a lot of opportunities throughout the region. Probably the initial license is going to be spoken for, I believe. But I would suggest that each Emirate will have its own opportunity to issue a license”, he commented.
Macau’s gross gaming revenue for July reached a total of MOP18.59 billion ($2.31 billion), up by 11.6 percent yearly and 5 percent monthly.
According to data from Macau’s gaming watchdog, the Gaming Inspection and Coordination Bureau (DICJ), the figure is a near-24 percent drop compared to the same month in 2019, before the pandemic.
July marks the fourth-highest GGR registered in Macau this year. Figures peaked in May, at MOP20.18 billion ($2.5 billion), while March was MOP19.5 billion ($2.42 billion) and January was MOP19.33 billion ($2.4 billion).
The slight monthly uptick is promising after the seasonally lower results in June and could set the tone for a stronger 3Q24. However, results are likely to pale compared to 4Q24, given the Golden Week which falls in October.
During the first seven months of the year, Macau brought in some MOP132.34 billion ($16.44 billion) in gross gaming revenue, a yearly rise of 36.7 percent but a drop of approximately 24 percent compared to the same period in 2019.
Good morning. The POGO stick – what goes up, must come down. The real estate sector in particular will face the brunt of the offshore gaming operators ban – with rents in Metro Manila expected to halve and vacancy rates increase, despite the sector being less exposed than before. Meanwhile, the Cagayan Economic Zone Authority is battling to keep its interactive gaming licenses, with its CEO testifying that POGOs never operated in the Philippines’ first offshore hub. And in Macau, MGM China delivered record-breaking 2Q24 results, with strong EBITDA and revenue topping $1 billion.
The impact of the ban on Philippine Offshore Gaming Operators (POGOs) is set to be heavily felt in the real estate market, despite operators already having largely shielded themselves from the backlash. Experts expect rental rates to as much as halve, with vacancy rates to rise by up to 19 percent in Metro Manila. However, this could provide a promising opportunity for local investors willing to snap up properties during the downturn.
Online gaming fraud is on the rise in the iGaming industry. In Q1 2022, there was an 85% increase in fake account registrations compared to Q4 2021. While players are undoubtedly affected by gaming fraud, iGaming platforms also suffer due to damaged reputations, huge financial losses, and legal consequences.
Macau gaming operator MGM China has reported a record second-quarter adjusted property EBITDAR of HK$2.44 billion ($312.72 million), a quarterly record and a yearly rise of 39.8 percent.
In the latest financials, released late Wednesday, the group indicates that revenue topped HK$7.95 billion ($1.02 billion),during the quarter, up by 37 percent yearly, with strong contributions from both its Cotai and Macau peninsula properties.
The group also noted that ‘the current quarter was positively affected by the continued ramp up of operations after the removal of COVID-19 related travel and entry restrictions in the first quarter of 2023.
MGM Cotai
The group’s Cotai Strip property contributed the most revenue during the quarter, at HK$4.7 billion ($601.5 million), a yearly rise of some 45.46 percent. Adjusted EBITDA figures also rose by nearly 50 percent, topping HK$1.45 billion ($186.75 million).
This was propped up by strong mass floor play, with main table games drop up by 45 percent yearly, to HK$15.65 billion ($2 billion).
Meanwhile, VIP table games turnover fell slightly year-on-year – by 1.5 percent, to HK$23.62 billion ($3.023 billion).
Slots also saw growth, with the slot machine handle totaling HK$7.31 billion ($936.3 million), up by 38 percent yearly.
The group also saw a slight uptick in its room occupancy rate, at 94.2 percent, a rise of 2 percentage points.
MGM Macau
Looking to the group’s peninsula property, revenue rose by 26.45 percent yearly, to HK$3.26 billion ($417.3 million), while adjusted EBITDA was up 27.66 percent, to HK$984.2 million ($125.97 million).
Main floor table games drop rose by 22.22 percent year-on-year, hitting HK$14.33 billion ($1.83 billion), while VIP table games turnover fell slightly – 1.7 percent, to HK$8.31 billion ($1.06 billion).
The slot machine handle for the property was actually higher than in Cotai, at HK$7.38 billion ($945.38 million), a yearly rise of 32.32 percent.
The room occupancy rate rose to 94.8 percent, from 94 percent in 2Q23.
MGM China
In consolidated results, the group announced that it saw a 33 percent increase in casino revenue yearly during the second quarter, at $891 million.
This was boosted by main floor table games drop of $3.83 billion, also a one-third yearly increase.
The group notes that its ‘market share remained in the mid-teens’.
MGM Resorts
Overall, the parent company of MGM China, MGM Resorts International, recorded a slight drop in net income, to $187 million, from $201 million in 2Q23.
Revenue for the group was $4.3 billion, up by 10 percent yearly which it notes was ‘due primarily to an increase in revenue at MGM China’.
The group’s Las Vegas operations contributed some $2.2 billion in net revenues, up by 3 percent yearly ‘due primarily to an increase in rooms revenue […] and an increase in catering and banquets revenue’.
Adjusted property EBITDAR was up just 1 percent yearly, to $782 million.
Regional operations revenue was flat, at $927 million, with a 2 percent fall in adjusted property EBITDAR to $288 million.
CEO statement
Bill Horbuckle, CEO and President, MGM Resorts
Speaking of the results, Bill Horbuckle, CEO and President of MGM Resorts International noted: “MGM Resorts continued to drive positive financial results and solid growth in the second quarter, with record MGM China Adjusted Property EBITDAR and further growth in Las Vegas where our Marriott relationship continues to exceed expectations and our meetings and convention business continues to strengthen thanks to our recently completed remodel of Mandalay Bay”.
The group continues on track with its Japan project, with groundbreaking on main construction works to take place in 2025, after ‘liquefaction countermeasure works’ in 4Q23. The grand opening is still expected in 2030.
Real estate experts in the Philippines predict that the government’s recent ban on Philippine Offshore Gaming Operators (POGOs) could send shockwaves through the real estate industry.
The industry insiders predict that rental rates for residential spaces could drop by 50 percent, while the vacancy rate for residential units in Metro Manila is projected to rise from the current 17 percent to 19 percent.
David Leechiu, a property sector expert and CEO of Leechiu Property Consultants
David Leechiu, a property sector expert and CEO of Leechiu Property Consultants, detailed in an interview with ANC that the secondary rental market may face considerable challenges.
“I think the secondary market will have a tough time because rents will come down by 50 percent, and it will take longer to find tenants, with most being local rather than foreign tenants,” he said.
He noted that POGO and POGO-related tenants have been significant lessees in this market. Despite the anticipated decline in rental rates, Leechiu believes that both the high-end and low-end segments of the market should remain stable.
Condo vacancy rate could reach 19%
Joey Bondoc, Director for Research at Colliers International-Philippines, notes that the vacancy rate for residential units in Metro Manila is projected to rise to 19 percent following the POGO ban.
Joey Bondoc, Director for Research at Colliers International-Philippines
Bondoc told the Philippine News Agency (PNA) that this increase will likely impact an already sluggish residential market. The POGO exodus, which began before the presidential directive during the COVID-19 pandemic, has led to significant price corrections in the sector. The vacancy rate was 17.9 percent in Q4 2021 and has remained around 17 percent since.
The complete POGO ban is expected to push this rate up to 19 percent, potentially dampening the take-up of residential units and slowing price and lease rate growth.
Approximately 20,000 foreign POGO workers have been given a deadline of September 24th to voluntarily leave the Philippines or face deportation. The Bureau of Immigration (BI) has stated that this order offers no exemptions, even for those with families and children in the Philippines.
Despite these challenges, Bondoc sees a silver lining for local investors. The price correction, driven by reduced demand from POGO workers, presents opportunities for local buyers. In 2019, during the POGO boom, prices per square meter increased by 10.9 percent quarter-on-quarter. With the decline in POGO activity, price growth has slowed to around 2 to 3 percent, with lease rates expected to recover gradually from 2024 to 2026.
Meanwhile, developers have continued to deliver new residential units, with 11,300 units turned over in 2023, close to the 11,700 units delivered in 2018. These projects, initiated during the POGO boom, are now expected to attract local investors and overseas Filipino workers as the market adapts to the new conditions brought about by the POGO ban.
Office market
The full impact of the total POGO ban on the real estate market in Metro Manila remains uncertain until concrete regulations and policies are issued. Despite this lack of clarity, property management consultancy firm Colliers International-Philippines anticipates that the ban will still significantly affect the office market in the region.
According to a study shared with AGB by Colliers’ Executive Director of Office Services, Dom Fredrick Andaya, although POGO-occupied spaces have decreased to a modest 3.5 percent of the total office stock in Metro Manila, the ban’s repercussions are expected to be significant.
The firm notes that while the proportion of POGO-occupied spaces has diminished, the overall influence of this sector cannot be entirely dismissed.
In a previous interview with AGB in February of this year, Colliers revealed that POGO operators comprised 20 percent of office space deals in 2023. At the height of POGO demand in 2019, the sector occupied an estimated 1.3 million square meters of office space, accounting for 11 percent of the total office supply in Metro Manila.
As of the first half of 2023, only 656,000 square meters of office space are currently occupied by POGOs (including IGLs) in Metro Manila, representing about 5 percent of the total office supply. Fifty percent of the remaining POGO-occupied spaces are located in the Bay Area.
Meanwhile, in the latest research, Dom Fredrick Andaya notes that there is some reassurance in the fact that major developers’ exposure to the POGO industry has also significantly decreased.
Other demand drivers, such as IT-BPM companies, traditional, local, and multinational businesses, and government agencies, continue to drive demand for office spaces. This diversification of demand is seen as a positive counterbalance to the decline in POGO-occupied spaces.
Ambiguity in policy
To ensure the effective implementation of the POGO ban, it is crucial for government agencies like the Department of the Interior and Local Government (DILG) and the Philippine Amusement and Gaming Corporation (PAGCOR) to coordinate and develop detailed policies and implementing rules.
Currently, the ban lacks specifics regarding affected entities and the process and timeline for winding up operations. A key issue to resolve is whether Internet Gambling Licensees (IGLs) and back offices supporting gaming within special economic zones, such as Philippine Economic Zone Authority (PEZA) and Cagayan Economic Zone Authority (CEZA), which have operated independently of PAGCOR and existed prior to the creation of POGOs, will be included in the ban.
Until the implementing rules and regulations are finalized, Colliers expects that POGO occupiers will adopt a wait-and-see approach. The uncertainty surrounding the implementation method—whether it will be through an executive order, a law passed by Congress, or PAGCOR regulations—adds to the ‘ambiguity’.
Colliers cites Pasig City’s approach in December 2022, where an ordinance effectively banned POGOs by not renewing existing business permits and denying new applications, as a potential model for executing the national ban.
Gaming Realms, a leading provider of mobile-focused gaming content, has renewed its Rainbow Riches licensing deal with Light & Wonder, extending the parties’ already successful partnership.
The award-winning game Slingo Rainbow Riches, a reimagining of Light & Wonder’s legendary hit, has become a leading title for Gaming Realms in the UK. Simultaneously providing mechanics and aesthetics attributed to the original release, the title transforms the slot format to align with the Slingo genre, offering players a fresh gameplay experience.
The renewed licence provides the option for Gaming Realms to create another Slingo iteration from Light & Wonder’s popular slot brand.
Extending the agreement will take the licensing partnership in excess of a decade, which is testament to the game’s success in the UK market and Gaming Realms’ proficiency for creating successful slots from established IPs.
Gareth Scott, Chief Commercial Officer at Gaming Realms, said: “Extending the partnership with Light & Wonder is testament to the continued trust it has shown Gaming Realms to bring the iconic IP Rainbow Riches to an additional gaming vertical, with our Slingo iteration. Furthermore, we’re thrilled to be building upon this success and now have the option to create a second Slingo title with the property.”
Games Global has signed a deal with World Wrestling Entertainment (WWE) to see branded content development influenced by the hugely popular sports entertainment franchise.
Games Global will produce three unique WWE-themed slot titles over a three-year period, with WWE Bonus Rumble: Gold Blitz the first release to be launched in August.
WWE is an integrated media organization and the recognized global leader in sports entertainment. The company consists of a portfolio of businesses that create and deliver original content 52 weeks a year to a global audience.
With the two companies having similar target audiences, the partnership will see several opportunities to collaborate, with the successful launches of the three games allowing both parties to recruit new players and fans. The slot titles will be available across all of Games Global’s key markets, excluding the United States.
Andy Booth, Chief Product Officer at Games Global, said: “Games Global is thrilled to step into the wrestling ring with WWE and deliver powerhouse content that will appeal to our audiences around the world. Some of the most iconic WWE superstars will bring our three titles to life and ensure players are immersed in the exciting world of sports entertainment.”
Authorities in the Philippines are urging the public to provide information on POGO firms that have gone “underground” after the recent announcement of the ban on offshore gaming operators under the regulator PAGCOR.
According to the nation’s news agency, government representatives urge the public to use social media platforms or report to local government, immigration or law enforcement to ‘flush out and deport’ foreign workers of POGOs.
Surigao del Norte 2nd District Representative Robert Ace Barbers on Wednesday specifically mentioned Chinese nationals, noting that “we all know that a number of them, who have pending criminal cases from their countries of origin, are still in the country and would rather stay and hide here than face the risk of being deported and punished at home”.
The official furthered: “We know that many of them would now or later go underground and operate on small scales. But let us not allow these illegal online gambling firms, their owners and workers, to induce and corrupt our local and national authorities to turn a blind eye with the use of their laundered money”.
He also pushed for help to “identify and/or unmask […] POGO enablers, some of whom may again find new and huge financial opportunities by hiding, protecting and coddling all POGO personalities that are subjects of the ban”.
Foreign POGO workers have been given until September 24th to voluntarily leave the Philippines or face deportation. No exemptions are to be granted, even for those with families and children in the country.
The nation’s Bureau of Immigration says it has instructed approximately 20,000 foreign workers, the majority of whom are Chinese nationals, to leave the nation.
Another raid on a suspected illegal POGO operation in Pampanga province was carried out on Tuesday, with authorities saying two Chinese nationals were detained and 13 Chinese nationals were ‘rescued’.
The suspects face charges under the anti-trafficking in persons act. The victims will be deported and prohibited from entering the Philippines, if authorities follow their previous modus operandi.
The Star has announced that its five-star hotel located in Queen’s Wharf Brisbane, The Star Grand, has officially started hotel bookings from August 29th – the same day the property is scheduled to open.
According to a Wednesday press release, the hotel will open with 340 rooms – encompassing 60 suites, four Penthouse suites and 276 standard rooms.
The August 29th opening is part of the phased roll-out of The Star Brisbane and Queen’s Wharf multi-staged opening.
The hotel opens along with three restaurants and four bars, the casino, event center and leisure deck.
According to the group’s website, ‘hotel facilities such as the gym, pools, steam room and sauna are not available,’ for bookings before November.
A further six F&B venues are scheduled to open later, as well as the Dorsett Hotel and Rosewood Hotel. Luxury retail, heritage buildings and another café are ‘coming soon’ as well.
“With venue openings rolling out over the coming months, our returning guests will have the opportunity to enjoy new experiences each time they visit including a wide range of culinary delights and the unveiling of our hotel pools, steam room, sauna and gym in time for summer,” notes The Star Brisbane’s CEO Daniel Finch.
“As the team prepare to unveil a destination almost a decade in the making, we are thrilled to invite guests of The Star Grand hotel to be among the first to experience the grand possibilities that await,” noted Finch.
