Gaming

For Macau investors, all bets are off

4 Feb 2020

The territory is closing casinos for two weeks to contain the virus. Visits to Sands and rivals may be postponed, not lost, but only a real gambler would double down on Macau now. Home entertainment from the likes of iQiyi, China Literature or Perfect World offer better odds.

Underdog will take home Japan’s casino jackpot

3 Jan 2020

Malaysia’s Genting is not the bookies' favourite as it competes for a coveted licence in the new market, worth $10 bln or more. But while it lacks Galaxy’s glitz or the scale of Las Vegas Sands, the betting group’s success in super strict Singapore will give it a winning edge.

E-betting boss opens all his presents in one go

23 Dec 2019

DraftKings CEO Jason Robins is raising cash, buying a company and going public by merging with a SPAC. It could be a smart bet on U.S. online gambling growth. But investors’ willingness to hand him supervoting rights shows they’ve learned little from the WeWork and Uber debacles.

Gaming’s strongest opponent will be regulation

23 Dec 2019

New Microsoft and Sony consoles come out in 2020. Apple and Google want to be the Netflix of online play, and game makers like Activision Blizzard, Epic and EA hold a strong hand. But tighter scrutiny of gambling-style digital prizes will temper the $130 bln industry’s growth.

Anime hero toys with Japan’s robotic governance

22 Nov 2019

Bandai Namco, the $14 bln creator of Pac-Man, wants to buy the rest of Sotsu, the company behind the iconic Gundam empire. A Chicago-based investor has flown in to fight a flawed deal unfair to minority shareholders. It may, however, take regulators to save the day.

China’s Tencent shows early signs of aging

13 Nov 2019

Quarterly sales rose 21% to $14 bln, a third of the pace two years ago. A crackdown on video games is to blame but that core business is maturing too. Shareholder returns have lagged Alibaba and peers. That will pressure boss Pony Ma to deliver on payments and other bets.

Super Mario turbo-charges case for Sony breakup

29 Oct 2019

Shares of $45 bln Nintendo have gained 30% this year, partly thanks to a mobile hit featuring its iconic plumber. A richer valuation should also be an inspiration to sprawling rival Sony. Separating its video-games and entertainment business could be one way to narrow the gap.

Hong Kong’s meeker neighbour faces its own perils

17 Oct 2019

Macau, run under similar rules to the former British colony, has been untroubled by anti-government protests across the water. History and size explain its model behaviour. The result, though, is less ideal: a $55 bln casino monoculture that relies on China’s tourists and favour.

Alibaba finds a new ally against an old foe

6 Sep 2019

The Chinese titan is buying part of video-games group NetEase's e-commerce business for $2 bln. More significantly, the two are forging closer ties in music-streaming, where rival Tencent’s dominance is under antitrust scrutiny. That combination paves the way for further deals.

Crown’s China troubles upset Melco’s grand gamble

6 Aug 2019

Fresh allegations around the Aussie casino giant's dealings with Chinese high-rollers have drawn scrutiny Down Under. That leaves new shareholder Melco in an uncomfortable spot. It hoped to use its Crown stake to push overseas; instead, the bet is adding to investor worries.

Macau’s medium-big spenders are spoilt for choice

29 Jul 2019

Las Vegas Sands says revenue from wealthy middle-class punters in the Chinese gambling enclave is falling – the first slump since 2016. Local rivals like Melco and MGM, as well as other Asian competitors, invested heavily in serving them. They may have over-built.

Gamer favourite Razer’s next level demands focus

23 Jul 2019

The Hong Kong-listed maker of pro-keyboards wants to widen its appeal beyond gamers. It already sells phones, and is dabbling in payments. Distractions can be costly, though, and Razer's main business is doing fine. Doubling down on e-sports instead might help it turn a profit.

Tencent holds key to China’s e-sports bonanza

15 Jul 2019

DouYu, which lets fans live-stream top video gamers, wants to raise $1 bln in a New York IPO. Competition for star players has crushed margins. Investors will bet backer Tencent, which also owns a stake in a rival, can limit the destruction and push for consolidation.

Asia’s online gambling jackpot proves hard to win

12 Jul 2019

Web-based betting shops have been booming in the Philippines since local rules were reworked. Despite a glut of punters in the broader region, a market estimated at some $11 bln, seasoned operators have been hesitant to place wagers. For now, the regulatory odds remain too long.

Odds are on for Macau mogul’s gutsy global play

10 Jul 2019

Lawrence Ho has built Melco Resorts and Entertainment into a $12 bln casino empire stretching from Manila to Melbourne. Next, he’ll chase a licence in Osaka. Even if he doesn’t hit the Japanese jackpot, diversifying into a true global operator looks like a good bet.

Nexon suitors must clear three tough levels to win

3 Jul 2019

Plans to sell control of the $13 bln maker of “MapleStory” and other video games have stalled, but may yet be revived. Bidders like KKR will have to get past a messy corporate structure. Then there’s South Korean nationalism to slay. And the last big challenge is China's Tencent.

Pricey Japan is best game in town for U.S. casinos

4 Jun 2019

Operators like Las Vegas Sands and MGM have vowed to spend $10 bln each developing new resorts, and may pledge more. A tough rule book makes the country particularly attractive to Americans, given compliance risks in other emerging markets. But a bidding war will reduce returns.

Macau’s Las Vegas ambitions face reality check

29 May 2019

Millions of Chinese visitors are swarming the tiny territory across a new bridge. The $38 bln gaming hub doesn’t seem to know what to do with them, and is mulling a tourist tax to reduce congestion. The city’s Nevada-inspired economic diversification strategy is due a rethink.

China’s game makers face a shapeshifting boss

24 Apr 2019

New rules provide some clarity and point toward fewer and blander video-game titles after a freeze on approvals last year. That should be manageable for giants including the $475 bln Tencent. Yet the whims of a revamped regulator finding its feet still warrant a discount.

Singapore raises stakes for Macau casino permits

24 Apr 2019

Las Vegas Sands and Genting will invest some $7 bln and endure harsher rules to extend their duopoly in the city-state. Investors flinched, wiping $2 bln off shares. It increases the odds that the Chinese gambling hub will demand more onerous terms from Wynn, MGM, and rivals, too.