Category: Casino Industry News

Casinos Are Helping Macau To Meet 5-Year Plan Goals

Casinos Are Helping Macau To Meet 5-Year Plan Goals

The gaming industry of Macau has successfully maintained a “healthy“ development for the period of 2016-2018, according to the so-called “mid-term review” conducted by the local government last Wednesday. It was considered quite a progress when Macau’s first five-year development plan is considered. The central government of China has had many five-year plans intended for the mainland economy ever since the foundation of the Communist Party of China in 1949, but this was something completely new for the governmental system of Macau.

The before-mentioned phrase “healthy development” is typically used by the officials of the Macau government when they think of their casino sector, sometimes in the meaning of the pace of the expansion in Macau’s GGR ( Gross Gaming Revenue).

Five-Year Development plan of Macau was officially announced in September of 2016, and it had a couple of economical and social aspirations for this city. Several targets were completed when the first year of the development plan came to an end. This five-year plan is intended from 2016 to 2020. Limits or targets for casino gross gaming revenue weren’t set. Although the plan did mention a few aspirations regarding the local gaming sector.

Those aspirations were that the gaming sector should probably: strengthen gaming regulations and policies; expand the proportion of the revenue which is non-gaming in comparison to the whole revenue that they generate; they should definitely concentrate on the quality of jobs as well as the employment chances available to the ID holders of Macau at the nearby casino resorts.

As it is written in the mid-term review of the five-year-old Macau plan, the non-gaming revenue of NGR accounted for in the year 2018 is precisely 9.97% of the whole revenue, which was generated by the casino operators of Macau. In the previous year, it was 10.36% of the entire revenue, while in 2016, it was 10.7% of the total revenue.

The figures have definitely exceeded the expectations of the Macau government, as it was stated in the mid-term review. The grand five-year plan has noted that the NGR or the non-gaming revenue accounting for a minimum of 9% of the entire revenue generated by the casino resorts by the revenue of 2020.

Another goal of that plan is to boost casino operators’ acquirements of local services and products as a proportion of their entire spend on outsourced supplies. In the year of 2016, those local supplies were about 58% of that spend; in 2017, the supplies were %62.69 of that spend, and in 2018, they were 65.04%, according to the mid-term review.

In the five-year Macau plan, there was also an objective of reducing to 76% by the year 2020, the proportion of gaming workers in Macau without having higher education as opposed to 80% in 2015. That goal was almost a reality in 2016 when somewhere around 77.8% of the gaming workers in Macau were without higher education. In 2018, it stood at 75.9%. 

Betfred Fined £322k After Customer Deposits £210k of Stolen Money

Betfred Fined £322k After Customer Deposits £210k of Stolen Money

Betfred, an online bookmaker, has agreed to pay £322,000 or approximately $400,000 to settle the allegations.  It has granted a fraudster who has already been convicted for that felony to deposit £210,000 or $261,000 of stolen money on their online platform. That particular customer had lost approximately £140,000 or $216,000 to Betfred when it was gambling for twelve straight days.

An investigation was led by the well-known regulatory company, UKGC, or the UK Gambling Commission, and they have concluded that Betfred has managed to break the anti-money laundering rules when they’ve failed to check the exact source of the funds of the fraudster.

“The management of this particular customer regarding the AML has raised significant worries concerning the effectiveness of the procedures and policies that this online bookmaker had in place, and also it handling of risks in relation to the licensing objectives,” by the words of UKGC. “Ever since this incident, Betfred has made many improvements to its anti-money laundering procedures to prevent these failings from reoccurring.”

The regulator has noted that the Betfred operator made a request twice for SOF, which stands for the source of funds, in the duration of 12 days in November 2017, but still allowed the fraudster to gamble and make a huge six-figure sum loss, even though the reply never came.

The UK Gambling Commission didn’t find the fraudster’s identity, which was quite unfortunate. Although a search in the UK may have found one candidate who fits the entire scenario. This September, Joyce Baker, who was a financial manager at Light Corporation situated in Berkhamsted, Hertfordshire, was sentenced for five years and ten months for fraud when she embezzled over £2,000,000 from her ex-employer at this corporation.

Caesars Entertainment Corp Is Selling Rio For Less Money Than The Valuation From 2017

Caesars Entertainment Corp Is Selling Rio For Less Money Than The Valuation From 2017

Caesars Entertainment will soon sell the Las Vegas Rio for $516 million to a principal in New York called Imperial Companies, which is a real estate investment firm. That selling price for the Rio Casino and Hotel is quite lower than the initial valuation from 2017, which was between $636 and $836 million. That valuation for Caesars was conducted by Moelis & Co. The sale of the Rio Hotel and Casino was a matter of time because it wasn’t a part of the upgrades that Caesars made.

Big chances are that the transaction is going to happen in the fourth quarter of 2019, according to the word of investors from the Deutsche Bank. For the deal to happen, it has to be approved by regulators. This Friday, Imperial has put a substantial amount of money- $5 million in an escrow amount as the first payment for the Las Vegas Rio. The terms are these; the Caesers is going to operate the venue for a minimum of 2 years, and it will also pay $45 million in rent per year. Imperial has an option to pay Caesars Entertainment Corp $7 million in order to make an extension of the lease for one extra year. After, Caesars has an option to either provide types of services or manage the property to Imperial as the venue makes the new-owner transition.

Since the year 2005, the World Series of Poker has taken place at the well-known Rio. That event will have a new location in the Caesars Forum conference center. The worth of that conference center is $375 million, and it has 550 square feet. It will open in the year 2020.

Major news is that the Caesars will likely be bought by Eldorado Resorts Inc, based in Reno, for a whopping $17.3 billion. CEO of Eldorado, Thomas Reeg made a statement that one or even two out of nine Caesars properties are going to be sold, and foreshadowed the sale of Rio. The Ceo of Caesars, Tony Rodio said that with that deal, Caesars will focus its resources towards the newly renovated Strip properties and make some big money out of them. Rodio also said that it’s a great thing that they’ve held the right to be the hosts of the Caesars Rewards Customers and the World Series Of Poker.

Their official homepage: https://www.caesars.com/corporate

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