Your Daily Asia Gaming eBrief: Sands narrow loss, pandemic looms

Good morning.

Shares in Crown Resorts slipped for a second day in the row as investors ponder whether the casino company will be losing its casino license at its flagship property in Melbourne. 
In Macau, it’s clear that Sands China’s recovery is continuing to gain ground after the posting of its 2021 second quarter results, though LVS CEO Rob Goldstein has flagged pandemic-related travel restrictions as a continuing headwind for the company. 
Meanwhile, there is speculation that SJM Resorts’ long-awaited property, the Grand Lisboa Palace will open sometime before September 1, after the company indicated it is planning to host an art exhibition at the venue starting on that date.
Finally, there has finally been some solid movement in the IR space in Japan this week, after the MGM/ Orix consortium submitted its official proposal to the Osaka to develop an IR in Yumeshima which government said in in line with their vision. Meanwhile, Canada-based Clairvest has been officially selected to partner with the Wakayama prefectural government to develop an IR there.

First, the news

What you need to know

Sands China further narrows loss in Q2, but pandemic continues to shadow

Macau casino operator Sands China continues to display strong recovery signals, with a narrower loss of $166 million in the second quarter of 2021, though LVS’ chairman says the company continues to suffer from the economic effects of the pandemic. Total revenues increased to $849 million, compared to only $40 million in the second quarter of 2020. The lion’s share came from its flagship The Venetian Macao, which generated $391 million in revenue in the quarter. Despite the year-on-year gains, Las Vegas Sands chairman and CEO Robert Goldstein said that pandemic-related travel restrictions in both Macau and Singapore have continued to hinder the wider group’s financial performance. 

Your Daily Asia Gaming eBrief: Sands narrow loss, pandemic looms

Crown stock slips as investors ponder potential license loss

Shares in Crown Resorts slipped for a second day as investors begin to mull the impact of the potential loss of a casino license at the company’s flagship property in Melbourne. In the aftermath, some analysts quoted in local media said that if the license was lost they expected a domino effect, with a separate inquiry in Western Australia also likely to reach the same conclusion. Shares in the company fell a further 1.7 percent in trading on Wednesday and are down more than 22 percent since May as the commission heard damaging evidence against the company.

Grand Lisboa Palace to open by Sept., event dates show

SJM Resorts’ long-awaited Grand Lisboa Palace does not have an announced opening date, the company on Wednesday indicated that it was planning to host an art exhibition at the venue starting from September 1st. The company’s last annual report had indicated it was planning to open the property within the first half of this year, while a stock exchange filing at the end of June stated it would open the flagship property “soon.” The new statement from an event on Wednesday, regarding the group’s planned art exhibitions, affirms that the property will be opening within the third quarter, although the company did not disclose further details.


Osaka IR in line with government vision, Wakayama approves Clairvest

MGM Resorts and Orix Corp.’s $9 billion IR in Osaka Japan has been delayed due to Covid, but the plans are in line with what the government had envisaged, Governor Hirofumi Yoshimura said. The consortium is proposing a JPY1 trillion (US$9.1 billion) investment level for its Osaka Yumeshima IR, with an opening expected sometime between 2028 and 2030. In turn, the Wakayama prefectural government has officially approved Clairvest Neem Venture’s plans to develop an integrated resort in the city.  The initial investment amount pledged by Clairvest for the development of the Wakayama IR is JPY470 billion (US$4.3 billion).

Corporate Spotlight

Pragmatic Play Asia footprint set to expand

Your Daily Asia Gaming eBrief: Sands narrow loss, pandemic looms

The well-known content provider in the iGaming industry— Pragmatic Play will continue to expand its footprint in emerging markets worldwide. The increasing acceptance of iGaming has resulted in a gradual shift in attitude toward regulation, with more and more markets taking an approach to deliver legislative roadmaps that will drive business in a period of hyper-growth.

Industry Updates

Your Daily Asia Gaming eBrief: Sands narrow loss, pandemic looms
Agbriefings, june, 2021