Gaming

Macau moguls’ rivalry threatens cost discipline

10 Aug 2018

High rollers pumped up revenue at Galaxy and Sands last quarter, while Wynn Macau fell behind. As casinos fight for their share of China’s $38 bln gambling hub, earnings are becoming more volatile. Investors will suffer if aggressive marketing and new attractions squeeze margins.

Hot streak at Macau’s SJM may be short-lived

1 Aug 2018

The $7 bln gambling group’s shares have soared since announcing its founder’s retirement. Yet the launch of a new casino on the Cotai Strip faces delays and the company now has a “hydra-like” leadership structure. New boss Daisy Ho needs a better hand to justify a rich valuation.

Macau casinos could lose VIPs to junket upstart

25 Jul 2018

Suncity boss Alvin Chau helps bankroll half of the gaming hub’s big-spenders. He also aspires to running his own casinos and could coax clients to try new markets like Vietnam. That may mean fewer high rollers at Wynn Macau, Galaxy and others when China’s slowdown bites.

Macau will struggle to kick its gambling addiction

28 May 2018

The Chinese region wants to be more like Las Vegas, and focus on varied nightlife and family fare. One official says resorts could generate 40 pct of revenue beyond the casinos. It's a worthwhile target for Galaxy and peers, but Macau's infrastructure is one of many hurdles.

Paddy Power turns M&A into a fantasy sport

23 May 2018

The Dublin-based group is merging its U.S. assets with fantasy-sports business FanDuel. If a recent Supreme Court ruling leads to nationwide legal sports betting, loss-making FanDuel’s users could become valuable punters. The catch is that payback could be a while in coming.

Viral game can unlock Tencent’s treasure chest

16 May 2018

The online giant has shed $95 bln of market value this year amid worries about falling margins. A 48 pct jump in first-quarter revenue helps ease those concerns. The Chinese launch of Fortnite, the game that has gripped teens across the world, also plays to Tencent’s strengths.

Time for Elaine Wynn to take break from the table

15 May 2018

The director targeted by the casino’s co-founder is leaving, as is another. With a refreshed board and new CEO, Wynn Resorts is well placed to move on from recent scandals. Unless she has suddenly hit on a new grand plan, Elaine Wynn would do well to leave them to it.

Get ready to gamble – on U.S. sports betting

15 May 2018

The Supreme Court ruled that the feds can’t stop states legalizing wagers on basketball and other games. It will push a $150 bln black market into the light and gives firms like DraftKings and Paddy Power, sports leagues and media outlets like ESPN a grab at the revenue pot.

A tale of two super-voting stakes – and steaks

3 May 2018

Zynga’s Mark Pincus converted his founder’s stock into regular shares, cutting his vote from 70 pct to 10 pct. Though overdue, it liberates the online-gaming firm. Meanwhile, the owner of Steak n Shake jammed through a dual-class structure – a backward step, as investors showed.

Japanese odds may be growing longer for casinos

3 May 2018

MGM and Melco are among those keen to bet on the new market, estimated at $25 bln. They got lucky with Prime Minister Shinzo Abe, who helped advance plans in the face of opposition. His political woes, though, could deal the efforts some public backlash and crippling regulation.

Elaine Wynn needs to turn up the heat

2 May 2018

The casino company’s co-founder wants to replace a director, but not with herself or an associate. The soft approach was rebuffed by the company, which claims it’s changed since her ex-husband quit. Elaine needs a sharper approach – or activist help – if she wants to be heard.

Sony offers an increasingly entertaining story

27 Apr 2018

The Japanese group made a record annual operating profit of nearly $7 bln, helped by a rebound in music sales and continued success in games. Yet Sony’s sprawl, including hardware, means it is stuck with an unglamorous valuation despite a global race to acquire content.

Nintendo aims splat bomb at Japan’s gerontocracy

26 Apr 2018

The maker of hit video game Splatoon is getting a 46-year-old boss. That’s refreshing in an ageing country where seniority counts for so much. Youth can be a liability too, as evidenced by the growing pains of Uber or Facebook. But Nintendo’s business is a young man’s game.

Bookie investors misjudge odds in political casino

24 Apr 2018

William Hill, Paddy Power Betfair and GVC collectively lost 1 bln stg in value on reports Britain may cap betting-machine stakes and hike levies. That’s worse than feared, but not unimaginable given low UK gambling taxes. Smarter investors would have seen the writing on the wall.

Poker group bets $5 bln on Sky-high sports growth

23 Apr 2018

Canada’s Stars Group is buying UK online sports-gambling specialist Sky Bet. The price is more than current owners CVC and Sky would have got in a mooted IPO. For Stars, the debt-heavy punt only works if Sky Bet’s rapid growth continues - or the U.S. relaxes sports-gambling laws.

Wynn tosses female directors into boardroom brawl

18 Apr 2018

The $21 bln casino giant has added three women to an expanded group. This marks a serious attempt to move on from a sexual harassment scandal, but co-founder Elaine Wynn wants a full overhaul. With a battle brewing, these women had best come ready to rumble.

China builds South Sea free-trade-zone bubble

16 Apr 2018

President Xi plans to turn the island province of Hainan into a special area with new commodity markets and lower trade barriers. The plan muddles a regional development strategy around Hong Kong and Shenzhen, but it benefits speculators – and embattled local champion HNA.

Retiring Macau mogul had first-mover disadvantage

13 Apr 2018

Stanley Ho is stepping down at 96. The casino boss enjoyed a decades-long head start in what is now the world’s top gambling hub. But his $5 bln SJM quickly lost ground to Wynn, Galaxy and others. When competition arrives, former monopolists can struggle to master a new game.

Wynn presents MGM with Vegas-like temptations

11 Apr 2018

The Bellagio owner has a rare chance to bid for its $20 bln casino rival as scandal-struck Wynn grapples with its future. The numbers are a stretch, and the vagaries of Macau make it difficult for MGM to justify a premium. Nonetheless, chances like this don’t arise often.

Holding: #MeToo is putting corporate law on trial

29 Mar 2018

Claims of sexual misconduct at the likes of Fox and Wynn Resorts have led to suits over board duties and disclosure. They’re long shots, largely because business governance is an awkward tool for social change. Yet investors and victims are giving it a new and useful purpose.