internationalcasinoreview Business NEWS


Casino operators in France believe that the market has hit the bottom after the latest annual figures show it declining at a much slower pace. Visitors are returning but they are spending less - unless they are playing poker either in the casinos, online and often both.


Empire Resorts plans Rights Offer Operator of the Monticello Casino and Raceway in New York state, Empire Resorts, has announced plans for a Rights Offer through which it hopes to raise some $35m (E26.9m) less expenses. It wants to use the proceeds to repay bridge loans and interest totalling that amount from its principal shareholder Kien Huat Realty III Ltd, made in November last year. Kien Huat itself will also take part in the Rights Offer.


French casinos hope for better 2011 after fall continues


nottoast FRANCE


For the third year running, the 196 casinos in France have together reported a fall in turnover, but a signifi- cantly less steep decline than in previous years, with a good deal of help from poker. In a combined press


release, the three profes- sional casino associations - Casinos de France, Syndicat des Casinos Modernes de France and Association des Casino Indépendants Français) - said that for the year to the end of October, the industry saw gross gaming revenues down 2.1 per cent on the previous year to E2.29bn.


The organisations said:


“This fall brings to 20 per cent the contraction experi- enced over the last three years.” Several casino operations


have experienced business difficulties, including Société Française des Casinos, with three casinos, which went into administration in the summer. The court in Nice also declared the Partouche Casino de Beaulieu insolvent. However, the industry association said it believed it had “seen some encouraging signs over the last few months of the financial year”, especially following falls of nine per cent in 2007/8 and of 8.2 per cent in 2008/9. Those falls, they said, were


Galaxy RMB bond issue oversubscribed


starattraction GALAXY ENTERTAINMENT GROUP


Macau operator Galaxy Entertainment Group (GEG) successfully closed a fixed-rate senior unsecured bond issue in December, to an aggregate principal amount of RMB1.38bn (E160m). When trading began on December 17, it was the first time a Chinese Renminbi (RMB)-denominated non- financial-institution corpo- rate bond ever listed on the Hong Kong Stock Exchange. The three-year bonds offer an attractive interest rate of 4.625 per cent.


The company said the


issue, which was increased 38 per cent from its original RMB1bn (E116m) target after being oversubscribed 13 times, was a strong vote of confidence. It will use the money to help create reserve funding for development of non-gaming businesses as well as for general working capital and in hedging pro- grammes to help eliminate currency risk. The company also con-


firmed that it was on track to open its Galaxy Macau resort on Cotai early in 2011. The fully integrated resort represents an invest- ment of the HK$14.9bn (E1.47bn).


90 February 2011 • businessnews Chairman of Galaxy, Dr


Che-Woo Lui, said: “I am delighted that GEG’s RMB bonds have been well received by the market, with demand far exceeding supply… This support con-


Galaxy Macau: almost finished


firms our decision to launch such an innovative and groundbreaking financial product… The increasing demand for offshore RMB products has created a tremendous opportunity for us to raise capital on very favourable terms for our non-gaming businesses and to further boost our finan- cial flexibility on top of our recent club loan.”


caused mainly by the smoking ban. They added: “The number of visits is now rising slowly again with guests returning. Although their purchasing power has been severely restricted by the economic crisis.” This,


they said,


explains the fall of 2.9 per cent in GGR generated by the roughly 22,000 slot machines in the country. Machines, nevertheless,


brought in the lion’s share of gaming revenues, totalling E2.09bn. Table games saw a slight


improvement nationally, raising E206.8m. The opera- tors believe that despite the 91-9 per cent split, it repre- sents the beginning of a


rebalancing between slot machines and table games. There’s a very long way to go.


Another positive develop- ment is the arrival of new younger guests, who come mainly to play poker, espe- cially Texas Hold’em, which has been legal in French casinos only since 2008. Even if there is only a two per cent margin on poker for opera- tors, they are still very keen to promote and encourage it, as player use other facili- ties, including the restau- rants and bars and often slot machines and other table games.


Restaurants and entertain- ment shows, said the associa- tions’ statement, “are moving


forward, reassuring opera- tors about their attempts to open their establishments to a more varied clientele.” The number one venue


remains Casino Barrière d’Enghien-les-Bains,


just


north of Paris, which gener- ated GGR of E150m in the year. It was followed by Par- touche’s Casino d’Aix-en- Provence, Tranchant’s Casino d’Amneville and the iconic Casino Barrière de Deauville. Georges Tranchant,


founder of the group that bears his name, told the French press that his company’s GGR had fallen by just 0.5 per cent and that he hoped next year would see it back in the black at one or two per cent ahead. This


Still number one, the Casino Barrière d’Enghien-les-Bains saw GGR of E150m in 2009/10


would be the result of a “heavy”


programme of


investment in new casinos, refurbishment and in new machines. He added: “The industry


remains very attentive to the competition from on-line gaming.” Revenues from legal online poker in the last four months of the financial year, in which several traditional casino operators are involved, are believed to have reached E120m, three times the annual revenues gener- ated by the game in terres- trial casinos in France.


Melco shareholders turn down Ho options


notthistime MELCO INTERNATIONAL DEVELOPMENT


Independent shareholders at Melco International Develop- ment, one half of the Melco Crown joint venture, have voted down a proposal to allow chairman Lawrence Ho an option to subscribe to 38m shares at HK$4.58 (E0.45) each (a total price of HK$174m or E17.2m). Other directors and senior


staff were also in line for options under a company scheme.


The ballot was taken at an EGM on December 29, with more than 85 per cent of the shareholders votes that were allowed to participate on the day against the move. Ho and his associated companies hold 419.4m shares of the more than


Lawrence Ho


1.23bn in issue. However, he agreed to abstain from vote.


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