Changing law on slots at tracks iffy

August 31, 2008 at 1:04 pm · Filed under Online Gambling

Within a couple of years, the horse and dog track faces the certainty of having a nearby casino with hotel, bars, restaurants and other accouterments for attracting people and their money.

On Aug. 23, the Woodlands ran its final dog races and went dark. Co-owner Howard Grace says all options are on the table to reopen with slots, if it can agree on a contract with the Kansas Lottery, which owns the gambling.

The problem is that the law at best gives the track 40 percent of the revenue, which track officials say isn't enough to make it worthwhile. That would require changing the law.

The Woodlands isn't the first track to close. The Wichita Greyhound Park shut it doors after Sedgwick County voters rejected slots at the track. The long-closed Camptown Greyhound Park in Frontenac has stopped trying to reopen.

The situation with the Woodlands isn't unique.

Will Cummings, a consultant who studies casino and racetrack markets throughout the country, told the Kansas Racing and Gaming Commission recently the growing trend is that tracks lose business to emerging casinos.

"They're in a tough spot," Cummings said. "It's doable but it's not a pleasant prospect."

Those hoping lawmakers will ride to the rescue might want to think about coming up with a Plan B.

"I think gaming needs to be off the legislative table for awhile," said Senate Majority Leader Derek Schmidt, who supported the bill.

"Gaming can consume a lot of time and passion and those are resources that can better spent on other issues like the budget, health, education and transportation," said the Independence Republican.

Doug Lawrence, Kansas Greyhound Association executive director who helped write the gambling bill, said the Woodlands needs to reopen if it expects any help from legislators.

"I have to believe that if you are going to ask the Legislature to make an adjustment, they are going to have to at least try to make it work," Lawrence said.

The closing didn't sit well with Rep. Tom Burroughs, a Kansas City Democrat who supported the gambling bill.

"They said 'give us slots, give us slots'. Well, we gave them slots and now they want to close," Burroughs said.

Lawrence said a lot depends on whether the track owners, horse and dog breeders and casino supporters can unite, as they did last year.

"It's going to be hard to change unless everybody has something they need in a piece of legislation. That's the politics of the meat grinder. You have to reflect the interest of the folks involved," Lawrence said.

One mitigating factor is that by January, the four casino contracts will have been awarded and many legislators will be thinking up ways to spend the millions in expected state revenue from the casinos.

"It may not require a perfect storm like it did the last time because the Legislature is counting on the revenues," Lawrence said. "If you can show it has potential revenue for the state, it may change some minds."

One concern is that reopening the issue could give opponents a chance to rework it to kill the gambling law, sinking casinos, tracks and all those state spending plans.

"There would be some who are willing to revisit it to open it up and kill it," Burroughs said.

Supporters for changing the law say even if that happened, Gov. Kathleen Sebelius would veto the bill. But even if she does, if enough legislators want the gambling repealed, her veto will be overridden as it was on another emotional issue - the right to carry concealed guns.

Burroughs said the Wyandotte casino will bring far more money to the state than any track.

"Legislators should be cautious about giving a higher percentage to the tracks because it could put the casino investments at risk," he said.

How much gambling support will exist in the Legislature in January depends on the outcome of November's general election.

Sen. Chris Steineger said he's willing to change the law if there's enough votes to keep casinos alive. The Kansas City Democrat said he believes there will more "moderate minded" people elected.

"We put a tax burden on a business that was too high and caused job losses," Steineger said. "The Legislature should always look at ways to help businesses succeed."

But there are those who feel a government governs best when it governs least.

"The state of play is likely to remain unchanged and the various market players will just have to sort it out for themselves," Schmidt said. "The Legislature doesn't need to be in there figuring out the winners and losers."

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Man killed in Edmonton casino shooting

August 31, 2008 at 12:53 pm · Filed under Online Gambling

A man is dead and a woman is in hospital after an apparent shooting outside the River Cree Casino west of Edmonton early Saturday morning.

The Stony Plain RCMP were called to the casino at 1:26 a.m. by reports of fighting inside the Touch Lounge, a nightclub inside the resort. While police were on their way, the fight moved out of the club.

A few minutes later, the man was dead outside the casino's main entrance.

"RCMP officers attended, and there were fights outside as well, and they reported that a shooting had just occurred by the front doors of the River Cree Casino," explained Stony Plain RCMP spokeswoman Const. Barb Roy. "I can confirm that there is one male deceased. There was a female also injured, and taken to an Edmonton hospital."

Cort Gallup was inside the casino when the incident happened. He said he heard a little bit of commotion outside, and then someone nearby said that there had been a shooting.

He didn't quite believe it so he went out front to look, but said he soon regretted it.

"This guy was face down on the pavement," Mr. Gallup said "There was a bunch of people running around screaming."

The victim appeared to have a serious head wound, he said.

"He died right there."

The victim is believed to be in his mid-20s.

Casino customers were moved away from the scene, and the parking lot was shut so no one could leave until all the cars could be checked, Mr. Gallup said.

Stony Plain RCMP had general investigators and drug-section officers working on the case. Edmonton's forensic identification officers and the Edmonton Major Crimes Unit were also called out.

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Isle of Capri Casinos, Inc. Casino in Natchez, Miss. Closed Due to Hurricane Gustav

August 31, 2008 at 12:46 pm · Filed under Online Gambling

Isle of Capri Casinos, Inc. (Nasdaq: ISLE) announced that the Company closed its casino inNatchez, Miss. temporarily due to Hurricane Gustav today.

"The Mississippi Gaming Commission has issued an order for our casino to close, however, our hotel, which is not located on the water, remains open. We are taking all safety precautions and encourage our guests and employees to seek shelter in a safe area," said Tony Scudiero, vice president and general manager."

Isle of Capri Casinos, Inc., founded in 1992, is dedicated to providing its customers with an exceptional gaming and entertainment experience at each of its 18 casino properties. The Company owns and operates casinos inBiloxi, Lula andNatchez, Mississippi;Lake Charles, Louisiana;Bettendorf,Davenport, Marquette andWaterloo, Iowa;Boonville,Caruthersville andKansas City, Missouri; two casinos inBlack Hawk, Colorado; and a casino and harness track inPompano Beach, Florida. Isle of Capri Casinos' international gaming interests include a casino that it operates inFreeport, Grand Bahama, a casino inCoventry, England, and a two-thirds ownership interest in casinos in Dudley andWolverhampton, England.

This press release may be deemed to contain forward-looking statements, which are subject to change. These forward-looking statements may be significantly impacted, either positively or negatively by various factors, including without limitation, licensing, and other regulatory approvals, financing sources, development and construction activities, costs and delays, weather, permits, competition and business conditions in the gaming industry. The forward-looking statements are subject to numerous risks and uncertainties that could cause actual results to differ materially from those expressed in or implied by the statements herein.

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Melco reports results

August 29, 2008 at 12:13 pm · Filed under Online Gambling

Stripping out non-cash and non-operating items, the Group's results actually improved from a net loss of approximately HK$323 million in 1H07 to a net profit of approximately HK$16 million in 1H08.

-- The Group's Macau gaming business, operated through 37.9%-owned NASDAQ listed Melco Crown Entertainment Limited ('MPEL') staged a major turnaround. The Group's attributable profit from MPEL amounted to approximately HK$131 million in 1H08 (1H07: attributable loss of HK$298 million).

-- Adjusted EBITDA of MPEL increased dramatically from a negative amount of US$13.3 million to a positive amount of US$113.5 million.

-- Crown Macau delivered impressive returns with VIP rolling chip volume increasing by 3,690% on a year-on-year basis to approximately HK$294.9 billion (US$37.9 billion) in 1H08. Crown Macau's market share jumped to around 14% in June 2008, making it one of the largest VIP casinos in the world in terms of betting volume.

-- Mocha Clubs continued to deliver a steady source of income to MPEL.

-- City of Dreams has its first phase and four hotels topped out and is scheduled for opening in 1H09.

Melco International Development Limited ('Melco' or the 'Group', HKEx Code: 200) announced its interim results for the six months ended June 30, 2008.

For the six months ended 30 June 2008, net loss attributable to shareholders amounted to approximately HK$614 million. However, stripping out those non-cash and non-operating items, results actually improved from a net loss of approximately HK$323 million in 1H 2007 to a net profit of approximately HK$16 million in 1H 2008. Please refer to the Results Announcement on the Stock Exchange website for detailed Financial Review.

Mr Lawrence Ho, Group Chairman and CEO of Melco, said, 'I am delighted that Melco secured separate listing for most of its business units at different stock exchanges in major financial centres around the world. In addition to giving the different business units their independent financing platform for supporting development, the endeavour has also helped to consolidate Melco's leadership in the leisure, gaming and entertainment sector in Asia. All business units are moving on the right tracks and we are confident that their efforts in streamlining their businesses are going to bear fruits soon and in turn have better contribution to Melco.'

Business Review

LEISURE, GAMING AND ENTERTAINMENT

Melco Crown Entertainment Limited (Nasdaq: MPEL - News)

The Group's gaming operation is principally conducted through 37.9%-owned NASDAQ listed associate Melco Crown Entertainment Limited ('MPEL'). The Group's attributable contribution from MPEL swung from a loss of approximately HK$298 million in 1H07 to a profit of approximately HK$131 million in 1H08. The turnaround was primarily due to Crown Macau's strategy to enhance its focus on the VIP rolling chip segment in Macau.

Crown Macau, the Group's first hotel-cum-casino project targeting high rollers segment, reported substantially improved operating performance with VIP rolling chip volume increasing by 3,690% on a year-on-year basis to approximately HK$294.9 billion (US$37.9 billion) in 1H08. Crown Macau's market share jumped to around 14% in June 2008, making it one of the largest VIP casinos in the world in terms of betting volume.

Mocha Clubs also reported improved results with solid growth in net operating revenue and adjusted EBITDA. Average net win per machine per day also improved to US$228 in the second quarter of 2008 from US$223 for the corresponding period in 2007.

Development of City of Dreams remains on track. The first phase of the project was topped out in April 2008 and is scheduled to open in 1H09. All four hotel towers in the project, namely, Crown Towers, Hard Rock and the twin-towered Grand Hyatt hotels, had topped out and interior fit-out work is well underway.

Elixir Gaming Technologies, Inc. (AMEX Ticker: EGT)

Elixir Gaming Technologies, Inc. (AMEX: EGT - News; 'EGT'), in which the Group has an effective equity interest of 39.8%, has made solid progress. As at 12 August 2008, there were 1,262 gaming machines installed on a revenue participation basis across 14 venues in the Philippines and Indo China. As a result of some start-up problems and delay in ramping up, contribution from EGT in 1H08 was below expectation. However, management have proactively made significant effort and initiatives to improve performance. These initiatives have started to bear fruits, as evidenced by the net win per machine per day improving to US$51 in July 2008, up from US$29 for the second quarter and US$33 in the month of June. Management expects to see continuing improvement in the second half of this year.

Melco LottVentures Limited (HKEx: 8198)

Melco LottVentures Limited, in which the Group has an effective interest of 37.5% on a fully diluted basis (assuming full conversion of all outstanding convertibles), made its first move to build a Pan Asian portfolio of lottery business. In March 2008, it announced the acquisition of the entire issued share capital of KTeMS Co. Ltd., which has a 14% equity interest in Nanum Lotto Co. Ltd., a consortium holding exclusive rights to operate off-line lotto games in South Korea. The acquisition was approved by shareholders at an extraordinary general meeting on 15 April 2008. Detailed due diligence check is near completion and the transaction is scheduled for formal closing before the end of September 2008.

Melco China Resorts (Holding) Limited (TSXV: MCG, MCG.WT)

In May 2008, the Group successfully obtained a listing status for its ski resort business in China on the TSX Venture Exchange in Toronto, Canada. Through a series of complex transactions involving the reverse take-over of Virtual China Travel Services Co., Ltd. ('VCTS') (formerly NEX: CTX.H), the Group now owns 49.3% of Melco China Resorts (Holding) Limited (TSXV: MCG, MCG.WT) ('MCR'). This is an important step for MCR which aspires to build a portfolio of premier ski resort destinations in China.

MCR acquired 5 ski resorts last year and plans to develop them into world- class luxury all-year mountain resorts. These mountain resorts also have significant potential for the development of premium real estates for discerning buyers. Related works have commenced, beginning with Sun Mountain Yabuli, situated in Harbin. The development at Yabuli comprises three new five-star hotels and is expected to be re-opened for business in the coming winter season towards the end of 2008. It has topped out two of the hotels and broken ground on its first luxury home project which will be available for sale later this year. Initial improvement work of the Sky Mountain Beidahu and Star Mountain Beijing resorts were completed. Planning for the development of Adventure Mountain Changchun resort and the private Lotus Mountain Club, is also underway.

'Melco is expanding its portfolio of leisure and entertainment facilities to serve the needs of an increasing number of middle-income leisure seekers in Asia. Despite economic uncertainties and tightening of travel restrictions for Mainland tourists visiting Macau, we remain optimistic on the medium and long term growth potential of China and the Asia-Pacific region. We will continue to respond to changing dynamics with well-thought-out strategies and imaginative products. While pursuing these ambitious goals, Melco will continue upholding the highest standards of corporate governance and social responsibility, while remaining committed to bringing its shareholders the highest possible returns,' Mr. Ho concluded.

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CET to sell casino stake

August 29, 2008 at 12:11 pm · Filed under Online Gambling

Cape Empowerment Trust (CET) - which expended much effort accumulating gaming assets over the last three years - on Friday made the surprise announcement that it intended selling off its significant minority holding in recently listed Grand Parade Investments (GPI).

The timing of the announcement is rather curious as GPI, which owns a major empowerment stake in the GrandWest casino in Cape Town along with smaller casino interests, is due to announce results early next week.

CET's sale of its GPI stake will be done "a competitive process", which means the best bid (or bids) for all or part of CET's GPI shares will be considered.

It would seem CET is hoping to get a better price for its GPI shares by this process. Selling the shares on the open market would be tricky because GPI has traded rather weakly since listing on the JSE a few months ago.

CET CEO Shaun Rai said GPI - while still "a very attractive company" - did not fit with CET's investment approach of investing in businesses it could control or enjoy significant influence over.

Rai told Fin24.com at the group's annual general meeting on Thursday night that CET was keen to focus on its property business and service sector offerings (like its fast growing security business).

On Friday Rai said much of the proceeds from the GPI sale could be used to reduce debt, chase new opportunities and re-invest in existing CET businesses.

He said CET would also consider buying back shares - something that would show directors' confidence in the group's longer term prospects.

GPI holds roughly 50m GPI shares, which means at current prices the group could fetch between R150m to R200m for its stake. A good number of GPI shares are held indirectly via trusts and empowerment companies, which might make selling the whole parcel of shares difficult.

The bottom line is that CET will realise a fair profit on its GPI shares - most of which were bought at markedly lower levels than GPI's current share price.

Possible buyers for CET's shares could include Trematon Capital Investments and Blue Bay Fund Managers, which rank as two of the bigger GPI shareholders.

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Mohegan Sun Opens Casino of the Wind with a Full House

August 29, 2008 at 12:09 pm · Filed under Online Gambling

An eager crowd, all wanting to be the first on the shiny, new slots and un-christened tables, were among the first to see Mohegan Sun’s 64,000 square-foot Casino of the Wind, which opened Friday.
After a Tribal blessing ceremony and brief press conference, the 100-foot curtain that has masked the casino as it was prepared for the public, was parted to reveal the space designed to reflect Mohegan Tribal traditions honoring the wind.

The space opened just 14 months after it broke ground in June 2007.

Designed by the Rockwell Group and WATG, the space includes a 42-table poker room and additional slots and table games, creating 45,000 square feet of new gaming space. Jimmy Buffett’s Margaritaville and Chief’s Deli, which returns to Mohegan Sun after a two-year hiatus, are also located within Casino of the Wind.

“Today, we begin a new phase of Mohegan Sun’s continuing growth as one of the premier gaming and entertainment destinations in the world,” said Bruce “Two Dogs” Bozsum, Chairman of the Mohegan Tribe. “Following in the footsteps of Casino of the Earth and Casino of the Sky, the Rockwell Group again utilized our Tribal traditions in their design and conception for the new Casino of the Wind.”

Casino of the Wind draws inspiration from solar phenomena, artistic representations of some of the Mohegan Tribe’s most timeless traditions are highlighted, including the spirits of the four winds: north, south, east and west.

“The central idea behind the design of Casino of the Wind is the re-interpretation of wind as it moves through space, transforming the surface it touches,” said Rob Holecek, CEO of WATG. “WATG has created an addition that blends gracefully and seamlessly, both aesthetically and functionally with the existing Casino of the Sky entrance, and yet is large enough to contain gaming, food & beverage and casino support functions.”

Some of the key design elements of the new space include a 35-foot high by 50-foot wide electronic and animated waterwall which acts as a projection screen, four 35-foot stacked solid glass clad columns and a custom chandelier over the new 30-seat bar.

“We have worked countless hours with the Mohegan Tribe to ensure their vision became a reality,” said David Mexico, Senior Designer for the Rockwell Group.

Casino of the Wind is part of Mohegan Sun’s second major expansion, Project Horizon, a $925 million expansion which will be complete in 2010. The first major expansion, Project Sunburst brought Casino of the Sky, The Shops at Mohegan Sun and Mohegan Sun’s hotel to the property in 2001.

“Just months shy of the 13th anniversary of Mohegan Sun, we stand here today to celebrate yet another major milestone in our history – the opening of Casino of the Wind,” said Mitchell Etess, President and CEO for Mohegan Sun. “As we get ready to celebrate Labor Day this coming weekend, I would like to thank the core of our success, our employees, and congratulate those staff who have recently been hired as we grow with Casino of the Wind.”

Over 350 new permanent positions were created for Casino of the Wind, as well as over 850 construction jobs. In total, Mohegan Sun projects adding 1,500 jobs to Mohegan Sun upon completion of Project Horizon in 2010.

Poker Room

With classic games like Texas Hold’ Em, Seven-Card Stud and Omaha, the 42-table poker room is designed to please gamers of all levels. Whether a novice or a pro, the new room filled with over twenty-three LCD 50-inch television, will have something for everyone, including a semi-private high-level area featuring seven high-limit tables.

Jimmy Buffett’s Margaritaville

The island experience is coming to New England just in time for the autumn chill, as Jimmy Buffett’s Margaritaville prepares to open its doors in late September to early October.

“We’re very excited about bringing the Margaritaville experience to Mohegan Sun,” said Craig Wilson, General Manager of Jimmy Buffett’s Margaritaville. “We believe we’ve found a perfect complement to that island state of mind in New England’s largest and most exciting gaming destination.”

The new 16,000 square-foot two-level restaurant, designed like a marina, will feature two unique floors of dining space, a retail boutique, concert stage and multiple bars and will be the only venue at Mohegan Sun with a waterfront view of the Thames River. The second floor will have open-air seating that will allow guests unobstructed views for miles while dining and relaxing. Besides serving up some serious margaritas, frozen concoctions, boat drinks and cold beer, Margaritaville offers its signature Cheeseburger in Paradise alongside island-inspired favorites such as Jamaica Mistaica Wings, Calypso Mahi Mahi and Key Lime Pie.

Chief’s Deli

After a two-year hiatus, Chief’s Deli makes its triumphant return to Mohegan Sun in the new Casino of the Wind. The walk-up restaurant will feature seating for over fifty to enjoy soups, salads, lox, grilled and cold sandwiches and desserts. The centerpiece of the menu is The Sturges, a Roasted Turkey Sandwich with American Cheese on White Bread, made just the way the late Chief Ralph Sturges ordered it at Chief’s Deli’s previous location in Casino of the Earth.

Gaming Galore

Complimenting the 300,000 square feet of existing gaming space in Mohegan Sun, Casino of the Wind adds 45,000 additional square feet of gaming space. With games like Blackjack, Roulette and Craps, the new 28 traditional table games under four decorative trellises offer something for everyone. For slot lovers, over 650 new machines from leading slot manufactures like WMS, Bally, Aristocrat and IGT will be on-hand.

With the addition of Casino of the Wind, Mohegan Sun is now home to over 6,700 slot machines and has over 375 table games throughout the 3.5 million square-foot facility.

About Mohegan Sun

Mohegan Sun is currently in the midst of Project Horizon – a multi-million dollar expansion that calls for a new 920-room hotel, featuring 261 House of Blues-themed rooms and an exclusive members-only House of Blues Foundation Room™. The expansion also includes additional retail and restaurant space, and the newly-opened 64,000 square-foot Casino of the Wind. Upon full completion in 2010, Project Horizon is expected to add more than 1.4 million square feet to Mohegan Sun’s existing structure.

Mohegan Sun, owned by the Mohegan Tribe, is one of the largest, most distinctive and spectacular entertainment, gaming, shopping and meeting destinations in the United States. Situated on 240 acres along the Thames River in scenic southeastern Connecticut, Mohegan Sun is within easy access of New York, Boston, Hartford and Providence and located 15 minutes from the museums, antique shops and waterfront of Mystic Country.

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Eastside Cannery Casino & Hotel Now Open to the Public

August 29, 2008 at 11:59 am · Filed under Online Gambling

Eastside Cannery Casino & Hotel opened its doors to the public Thursday, August 28 at 8 p.m. The $250 million Eastside Cannery Casino & Hotel is the latest addition to the Cannery Casino Resorts family and is the newest casino in the Boulder Highway gaming area.

"Eastside Cannery is an outstanding addition to Cannery Casino Resorts,"said William Wortman, co-owner and principal of Cannery Casino Resorts. "We are excited to have opened our doors to the public and we are confident the property will set the standard for casinos catering to the local Las Vegas market."

Located in the Boulder Highway gaming corridor, Eastside Cannery Casino & Hotel features a 16-story tower of bronze, glass and steel, with a distinctive saw-tooth roofline, making an iconic impression. Within the new 16-story hotel tower, there are 307 guest rooms and suites that showcase floor to ceiling glass windows giving the guests spectacular views of the mountains and the bright lights of the Las Vegas Strip. The oversized 450 square foot guest room decor and furnishings are reminiscent of the ongoing industrial theme of the property, but have a fresh 21st Century feel with wide screen plasma televisions in every room. Guests who book the corner suites are treated to an exceptional view while soaking in their in-room spas in their 600 square foot surroundings. Guests who book one of the five executive suites on the top floor are able to enjoy all the amenities in their 900 square foot surroundings.

On the casino level, guests can enjoy 65,000 square feet of gaming space complete with more than 2,000 slot machines, 26 table games, a 450-seat bingo hall, a live keno lounge, a first-class poker room and a top-of-the-line Race & Sports Book. For meeting planners, the Eastside Cannery Casino & Hotel has 20,000 square feet of ballroom and meeting space to service a variety of meeting and convention needs. The main ballroom is 17,000 square feet and can be divided into five rooms. There are two additional meeting rooms as well as two boardrooms off the main ballroom.

In addition, Eastside Cannery offers an array of dining options to fit any budget and craving, from the succulent prime rib served at Carve(SM) to the delectable seafood ceviche at Casa Cocina(R). Sweet Lucy's Tableside Buffet(SM) offers up a warm family atmosphere with a variety of dishes to choose from that the whole family can enjoy. The Deli(SM) provides a quick pick-me-up while watching the action in the Race & Sports Book or taking a break from the excitement of the casino floor. Snaps 24-Hour Cafe(SM) features traditional favorites from super-sized sandwiches to garden-fresh salads to hand-cut steaks. Slated to make its debut in the fall is the much-anticipated lounge and kitchen, ONE SIX(SM). Set atop the 16th floor, the ONE SIX will feature an amazing view of the Las Vegas skyline.

Cannery Casino Resorts, LLC, owns and operates the Cannery Casino & Hotel in North Las Vegas; the Rampart Casino within the Resort in Summerlin, also home of the J.W. Marriott Resort; and the brand new Eastside Cannery Casino & Hotel which will open its doors in August 2008. The company also owns and operates the Meadows Racetrack & Casino in Washington County, PA.

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Amax Enters into Agreement to Sell LCD Business

August 27, 2008 at 6:19 am · Filed under Online Gambling

Amax Entertainment Holdings Limited (HKSE: 0959) (“Amax” or “the Company”) announced today that it has entered into a Sale and Purchase Agreement (the “Disposal”) pursuant to which the Company has agreed to sell to an independent third party (the “Purchaser”) 100% of its equity interest in Profit Goal, which is principally engaged in the sales of LCD and LCD modules through a subsidiary. Profit Goal recorded a net liabilities of approximately HK$30.8 million as at 31 March 2008 and the Purchaser has agreed to acquire Profit Goal for a nominal consideration of HK$1.00, subject to shareholders approval and additional customary closing requirements. As a result of the planned Disposal, Amax expects to record a gain of approximately HK$30.8 million for the year ending 31 March 2009 and an increase in the Company’s net assets of approximately HK$30.8 million.
Mr. Ted Chan, Chief Executive Officer of Amax, commented, “The sale of our LCD business represents the final step in Amax’s transition to a company solely focused on the gaming and entertainment business through our junket aggregation business in Macau and our promotion and management of the Greek Mythology Casino in Taipa, Macau. Following the disposal of this non-core asset, our operating results and capital structure will more accurately reflect the significant leverage inherent in our gaming intermediary business model.

“Since establishing our unique junket aggregation business model in December of 2007, Amax has consistently generated market-leading monthly VIP rolling chip volume. We remain confident in our ability to deliver promising results following the expected implementation of a commission cap of 1.25% of rolling chip volume. Going forward, Amax’s resources will be fully devoted to its gaming and entertainment business model and we look forward to working with our strategic partner to extend and expand upon our success in providing the risk free liquidity that brings industry-leading VIP rolling chip volumes to their top-tier VIP gaming facilities.”

Late in 2007 Amax entered the gaming promotion business in Macau through AMA, whose business model differs from that of other junket operators in Macau. Instead of working directly with junkets and/or gaming customers, AMA aggregates the business of junket operators to whom commissions of 0.9% to 1.21% of rolling chip volume are payable.

Definition of Rolling Chip Volume

VIP Rolling Chip Turnover is used by casinos to measure the volume of VIP business transacted and represents the aggregate amount of bets players make. Bets are wagered with “non-negotiable chips” and winning bets are paid out by casinos in so-called “cash” chips. “Non-negotiable chips” are specifically designed for VIP players to allow casinos to calculate the commission payable to junket operators. Junket commissions are paid based on the total amount of “non-negotiable chips” purchased by each player. Junkets therefore require the players to “roll,” from time to time, their “cash chips” into “non-negotiable” chips for further betting so that they may receive their commissions (hence the term “Rolling Chip Turnover”).

Through the junket operators, “non-negotiable chips” can be converted back into cash at any time. Betting using rolling chips, as opposed to using cash chips, is also used by the DICJ (Macau Gaming Control Board) to distinguish between VIP table revenue and mass market table revenue.

About Amax Entertainment Holdings Limited (HKSE: 0959)

Listed on the Main Board of the Hong Kong Stock Exchange, Amax Entertainment Holdings Limited (“Amax”) is principally engaged in gaming and entertainment business in Macau. Amax conducts its casino operation in Macau via its 49.9%-owned Greek Methodology Macau Entertainment Group Corporation Limited and late in 2007 entered into gaming promotion business in Macau via AMA International Limited (“AMA”) in which it has an indirect 80% interest. The gaming promotion operation is expected to emerge as the Company’s primary source of earnings.

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Black Gaming posts $20.3 million loss for quarter

August 27, 2008 at 6:06 am · Filed under Online Gambling

If you think the slowing economy has hit casino operators in Las Vegas hard, travel 80 miles northeast to Mesquite.

Black Gaming, operator of three hotel-casinos in the town, reported an operational loss of $15 million for the quarter ended June 30, driving the company to a net loss of $20.3 million.

The latest loss is wider than the $2.6 million net loss posted for the same quarter last year. For the year, the company has posted a loss of $24.3 million.

Chairman and Chief Executive Randy Black Sr. said the company has been put in a "defensive position" and "at some point you just can't cut your way to profitability."

Late last year, Black Gaming, which owns the CasaBlanca, Virgin River and Oasis casinos along Interstate 15, began an aggressive campaign to combat the economic downturn by eliminating departments, reducing management salaries and conducting layoffs.

Black told investors the company cut more than $10.5 million in operating expenses in the first six months of the year, but it hasn't been enough.

"The combination of reduced spending by customers and price reductions we have implemented to remain competitive has impacted our profitability and continued to decrease our (cash flow)," Black said last week in a conference call with investors.

On Aug. 5, Moody's Investors Service downgraded Black Gaming's bond ratings for the second time in three months based on declining market revenues.

Black told investors that he believes an infusion of funds will be necessary next year for the company to meet "liquidity needs." However, enough money should be available to meet working capital requirements, capital expenditures and scheduled interest payments through the end of this year.

In a move to increase revenue, Black Gaming and casino industry veteran Michael Gaughan, owner of South Point, merged their sports book operations Aug. 21, in time for the start of the lucrative football season.

Anthony Toti, an executive who joined Black Gaming late last year after 28 years at Coast Casinos, said combining the operations will let the Mesquite properties increase their limits to $5,000 for college sports and $10,000 for professional sports.

"It's so we can increase our handle and our drop, take bigger bets without so much exposure," said Toti, whose father, Frank Toti, is Gaughan's business partner. "If we're linked between three or four books, it's just easier to take higher limit bets."

The merger will link the sports-book operations, but not the race books, of the three Mesquite properties, South Point and the El Cortez in downtown Las Vegas.

Although Black Gaming continues to adopt changes to help curtail the economic slide, second-quarter net revenues fell 16.2 percent to $36 million for the three months ended June 30, from $43 million a year earlier.

Revenues for the first six months of the year fell 16.2 percent to $74 million from $88.3 million, an Aug. 14 filing with the Securities and Exchange Commission shows.

Casino revenues decreased between April and June, dropping 22.1 percent to $21.2 million from $27.2 million, and 19.6 percent to $45.6 million from $56.7 million. Gaming revenue in Mesquite slid 12.2 percent to $37.2 million for the quarter, state gaming regulators report.

Black said in May the "other guy" -- the privately owned Eureka casino in Mesquite -- controls approximately 30 percent of the local market and his company needs to "cut into" that share.

Black Gaming's other quarterly revenues dropped, too, including 16 percent in the hotel, 17.2 percent in food and beverage and 14.3 percent in other departments.

The company's aggressive room rate cuts led to a six-month revenue decrease of 19.2 percent to $16 million from $19.8 million.

The company released neither occupancy rates nor daily room rate averages for the quarter. However, a check of room rates on Monday for the upcoming Labor Day weekend found rates ranging from $59 per night to $119 per night.

Prices drop to as low as $29 per night by the middle of next week and $49 per night on Friday, Sept. 5.

"We still see that people are coming to our properties, just not as many people," Black said. "People are spending money, just not as much."

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Abuzz with casino anticipation

August 27, 2008 at 6:02 am · Filed under Online Gambling

The Sun City Aliante clubhouse is like a never-ending summer camp for the retired.

It's where the guys with 168 hours of free time each week — like 81-year-old Norman DeSellem, and Fred Schagel, a youthful 61 — pass the time by playing eight-ball pool while sharing the wisdom of old men and offering a dash of trash talk.

The picture windows overlook a golf course framed by mountains.

On the other side of the building, Aliante Station has risen, standing tall over the single-story homes that fill one of the newest planned communities in the valley. And this, as much as the weather or the grandkids or Schagel's 39th wedding anniversary this weekend, is the talk of Sun City Aliante, a community for people 55 and older.

The casino's towering modern architecture and glass exterior at Interstate 215 and Aliante Parkway can be seen for miles, making it the best — and maybe only — landmark in the area.

The casino will open in November, bringing 202 hotel rooms, a 650-seat concert venue, six restaurants and 16 movie screens to an area that three years ago was undeveloped desert. In the past year, Sun City Aliante — one of more than a dozen communities that make up Aliante — has neared completion with roughly 2,000 homes, a grocery store, a pharmacy, a gas station and a host of fast-food options.

The casino, in the eyes of men like DeSellem and Schagel, is more meaningful than a burger joint or another coffee shop.

"I absolutely cannot wait," says Schagel, a retired New York City Fire Department mechanic. "My wife likes the slots. Nothing big. Penny slots."

It will mark the end of the 15-minute drive across town for buffet dinners and a little light gambling at the 8-year-old Santa Fe Station.

More so, it will become a point of pride in the community, just as Green Valley Ranch Station Casino, Red Rock Resort in Summerlin and South Point near Southern Highlands became focal points in their communities.

(Aliante Station and Green Valley Ranch Station Casino are owned in a partnership with the Greenspun family, which owns the Las Vegas Sun.)

"We all moved in to retire and be active," says Mark Klein, a member of the Sun City homeowners association board. "The more activity close to here the better, especially with gas prices."

He says the homeowners board is planning tours of the casino.

But until the casino opens, all attention is on the pool table at the clubhouse. The old-timers are getting ready for another game.

DeSellem, the shorter of the two, smiles when he can't hear what you're saying. Schagel has the quick-talking mannerisms of a New Yorker. The two aren't sure how long they've been buddies, but it's been long enough to know DeSellem needs to work on his pool game, they say.

DeSellem, a retired Boeing engineer from Hawaii, has his Station Casinos rewards card and he's eager to try the new buffet. He figures with his points the prices will be similar to over at Santa Fe: about $12 for two dinners.

"You can't go to the grocery store and eat for that," he says.

They figure they'll take their wives over there a few times a week when it opens.

Maybe catch a movie or go bowling. Definitely have dinner.

There are no complaints from these clubhouse hustlers.

The pool table beckons.

"Want me to mess 'em up?" DeSellem says, preparing to start another game.

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