Good Morning. Blackstone finally succeeded in securing Crown Resorts this week after a year-long battle. However, now the hard work begins. Ben Lee, managing partner of IGamiX Management & Consulting, tells us he doesn’t see the Americans in the game for the long-term. But he said there’s potential for a battle of cultures as the U.S. investment group seeks to implement its turnaround plan.
We’d also like to take the opportunity this morning to let you know about the new dates for the ASEAN Gaming Summit 2022, which will be held at Shangri-La At the Fort in Manila on 25-27 July, 2022.
What you need to know
- Sands China is well placed to benefit from the recovery and growth of Macau’s mass market and is forecast to post EBITDA of more than $4.1 billion by 2025: Bernstein
- Las Vegas Sands’ credit rating was cut to junk, with the outlook remaining negative, due to the slower-than-forecast recovery from Covid.
- The Star Entertainment Group said its earnings in 1HFY22 were significantly impacted by property shutdowns and Covid-19 related operating restrictions.
- Crown Resorts reported a widened net loss of A$196.3 million in 1HFY22, due partly to property closure costs incurred during Covid-19 lockdowns during the period.
- Asia Gaming Brief has announced that the ASEAN Gaming Summit will now be taking place at the Shangri-La At The Fort in Manila on 25-27 July 2022.
On the radar
- China calls for more effort in cross border gambling crackdown.
- Man pleads guilty to depositing $1m in criminal money in Australian/NZ casinos.
What the papers say
- Visitors from HK and TW to prove full-vaccination prior to entering Macau
- Fitch places Crown on negative ratings watch on sale to Blackstone.
- Cambodia blocks 15 websites mostly offering Vietnamese lottery products.
- Hong Kong police arrest influencer accused of online gambling, bookmaking.
AGB Intelligence
DEEP DIVE
Potential for culture clash seen in Blackstone/Crown takeover
U.S. private equity firm Blackstone Group has finally won the prize in gaining control of Australia’s largest casino operator, although the marriage may prove rocky due to differing cultures, a leading gaming consultant said. Ben Lee, founding partner at IGamiX Management & Consulting, doesn’t see Blackstone as being in the picture for the longer term. “They are likely to fly in U.S. executives and to slash costs. There’s a lot of fat in the system if you look at the payroll,” Lee said, adding he expects the new management team, which was brought in following the Bergin Inquiry in New South Wales to also be replaced. However, any efforts in this direction may face push back from Australian unions, in particular if it involves floor staff. “There is potential for a serious clash of cultures,” he said.
Industry Updates
- New July dates confirmed for ASEAN Gaming Summit 2022.
- The Star taps Tourism Australia boss Michael Issenberg.
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