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An analyst urges Melco Resorts & Entertainment to divest properties in the Philippines and Cyprus to fund the Studio City acquisition and Thai expansion. Melco Resorts & Entertainment, a prominent casino operator, is facing pressure from an analyst to divest its properties in Cyprus and the Philippines. This strategic move, according to Vitaly Umansky of Seaport Research Partners, would free up crucial capital for two key objectives: a full acquisition of Studio City International and a targeted expansion into the burgeoning Thai casino market. Umansky highlighted concerns surrounding Melco's current portfolio. While the Philippines property generates cash flow, it faces increasing competition within the Manila market, hindering significant growth. The Cyprus operation has also encountered challenges, particularly due to the impact of geopolitical events involving Russia and Israel. Melco's stock price has been underperforming, reflecting investor concerns about the company's financial trajectory. Umansky argues that divesting non-core assets would not only improve the company's financial flexibility but also significantly boost investor confidence. Melco already holds a 55% stake in Studio City International. A full acquisition, Umansky suggests, could pave the way for a merger between the two companies, streamlining operations and creating synergies. While the Thai casino market  presents a lucrative opportunity, it also demands substantial capital investment. To navigate these challenges, Umansky advises Melco to explore strategic partnerships with local entities. This approach, successfully employed by Melco in other markets, would mitigate risks and potentially unlock more favorable market entry conditions. In essence, Umansky's recommendation emphasizes a strategic shift for Melco, prioritizing capital efficiency and focusing on high-growth opportunities while addressing existing operational challenges. Read related article:   Melco, SJM Resorts announce salary increases for employees

The performance of Macau’s casinos this year may be heavily reliant on the recovery of China's real estate sector and the resurgence of consumer confidence. Macau's casino industry faces an uncertain year, with its performance heavily reliant on the recovery of China's real estate sector and the resurgence of consumer confidence, according to analysts. This was bared through a report by newswire organization Lusa, which said that while some growth is expected, a return to pre-pandemic revenue peaks remains unlikely. A key factor influencing Macau's gaming revenue is the health of the Chinese economy. With the majority of Macau's visitors hailing from mainland China, a strong economy and confident consumers are crucial for casino success. However, concerns surrounding China's housing market and declining consumer confidence paint a more complex picture. “The biggest positive factor for Macau would be if the Chinese economy grows and consumer confidence levels improve,” said Vitaly Umansky, an analyst at Seaport Research Partners said. China's real estate sector has been facing challenges, with falling property prices impacting household wealth and potentially reducing discretionary spending, including trips to Macau. This is significant as housing represents a major investment for many Chinese families. Coupled with a recent drop in consumer confidence to a 34-year low, Nicholas Chen of CreditSights suggests that Chinese consumers cut down on travel and spending in Macau as they limit consumption.  “If the outlook for Chinese consumers is not good, they may tighten their belts, cut back on travel and spending,” Chen shared.  The Chinese government has implemented various stimulus measures, including interest rate cuts and increased infrastructure spending, aimed at boosting economic activity and restoring consumer confidence. While these efforts are expected to have a positive impact, analysts predict a gradual recovery, with consumer confidence potentially rebounding in the latter half of 2025 alongside stabilization in the housing market. Despite these challenges, some growth in Macau's gaming revenue is anticipated. However, analysts agree that a return to the record-breaking figures of 2018 is not on the horizon. The Macau government has set a more moderate revenue target, reflecting a cautious outlook. Furthermore, unlike previous periods of increased scrutiny and crackdowns on the casino industry, experts do not foresee any major new restrictions in the near term, provided that illegal activities do not resurface. The previous crackdown, which saw a significant reduction in the number of junket operators, has already addressed many concerns regarding undesirable practices within the sector. In conclusion, Macau's casino industry is navigating a period of uncertainty, with its fortunes closely intertwined with the trajectory of China's economy, particularly its housing market and the sentiment of its consumers. While government efforts to stimulate the economy offer some hope for recovery, a return to pre-pandemic highs is not expected in the immediate future. Read related article:   Analyst Macau Gaming Revenue Likely to Surpass Forecasts

Fontana Resort & Country Club's debt to CDC exceeds P203M as of Dec 2024, including unpaid lease payments, revenue shares, and penalties. Fontana Resort & Country Club’s debt to the Clark Development Corporation (CDC) has surpassed P203 million as of December 2024, according to an official. The outstanding amount includes unpaid lease payments, revenue shares, and penalties. This comes weeks after the CDC issued a cease and desist order on January 6 against both FDC and Fontana Resort and Country Club, Inc. (FRCCI) for violating their contracts. FDC and FRCCI are both owned by Chinese gambling tycoon Jack Lam.  According to CDC in an interview with Rappler, the figure is made up of unpaid minimum guaranteed lease payments, the required share of revenue from subleases, plus accumulated penalties and interest for failing to comply.  According to Noelle Mina Meneses, CDC Vice President for Business Development and Enhancement Group, this doesn’t warrant a move to find owners just yet, but a warning to ensure the companies meet their obligations. “Unlike in the take over of BCDA (Bases Conversion and Development Authority) over the Camp John Hay in Baguio, CDC has merely issued a cease and desist order. Such CDO is a preliminary step to compel FDC and FRCCI full compliance with its financial and contractual obligations with the CDC,” Meneses said. Otherwise, termination proceedings under the consolidated lease agreement will be initiated. However, if they ultimately fail to meet these obligations, the area's future development will depend on a new investor, aligning with the CDC's mandate for sustainable development and investment. “If, despite the issuance of a CDO, FDC and FRCCI shall not fulfill their financial and contractual obligations, CDC shall, in accordance with the provisions of the consolidated lease agreement, initiate termination proceedings,” she added. Read related article: Clark Authorities Shut Down Fontana Resort "Indefinitely"

Genting Casino's partial reopening hints at larger expansion plans before Lunar New Year. Find out what to expect at Resorts World Genting. Genting Malaysia is set to reopen more gaming floor spaces as the Lunar New Year approaches, a Malaysian brokerage shared in a report.  In its report published January 21, Phillip Capital said one of the scenarios it expects is for both Genting Casino 1 and 2 and other "connecting areas" to "progressively open before the festivities.  While initial visits showed a quiet atmosphere and ongoing renovations, subsequent visits revealed significantly increased foot traffic and the addition of new amenities. Philip Capital believes the casino is prioritizing expansion ahead of Lunar New Year, stating, "Given the unexpected reopening on 22 Dec 2024, we do not rule out the possibility of a quick-than-expected expansion."  They anticipate two possible scenarios before the holiday: either the progressive reopening of both Genting Casino 1 and 2, restoring about half the former floor space, or maintaining the current status quo with only Genting Casino 2 operational. The resort, nestled in the Titiwangsa Mountains, is a major entertainment destination and the only licensed land-based casino in Malaysia. The casinos within Resorts World Genting play a crucial role in the country's economy, contributing substantially to tourism revenue and providing employment opportunities. The closure of parts of the casino earlier in 2024 was attributed to planned renovations and upgrades, though some analysts suggested it might have been influenced by fluctuating demand. Regardless of the exact reasons, the closure had a noticeable impact on Genting Malaysia's financial performance. The reopening, even in a limited capacity, signals an effort to revitalize business and recapture lost revenue. The casinos are a vital component of Resorts World Genting's overall appeal, attracting both domestic and international tourists. Their operation is closely tied to the success of the entire resort, which includes hotels, theme parks, shopping malls, and other entertainment venues. Therefore, the reopening of the casinos is not just about gaming; it's about restoring the full draw of the resort as a premier entertainment destination in Malaysia. Read related article:   Genting Calls $600M Lawsuit on Resorts World Bimini "Baseless"

Genting Malaysia (GENM) is pursuing expansion, including opening a casino in Thailand, as part of its growth in diverse global markets. Genting Malaysia Bhd (GENM) is strategically positioning itself for growth by actively exploring opportunities in both Thailand's nascent gaming market and New York's competitive casino scene. According to Malaysia-based securities firm CSG International, GENM is closely monitoring developments in Thailand, where the government recently approved a draft law to legalize casinos within large-scale entertainment complexes.  This move aims to revitalize tourism, generate employment, and attract foreign investment. While specifics such as licensing details, investment requirements, and license durations are still pending, the potential for growth is significant.  Thailand’s move to explore opening a casino follows a regional trend seen in countries like Cambodia, Singapore, the Philippines, Laos, and Myanmar, all of which have gained economically from integrated resort developments. Genting Bhd's president and chief operating officer, Tan Kong Han, earlier confirmed the group's interest in integrated resort opportunities in emerging markets like Thailand and the United Arab Emirates (UAE) at the company's annual general meeting in June 2024.  He emphasized Genting's extensive experience operating in diverse jurisdictions, including successful ventures in the US and UK. Genting's impressive US portfolio includes the US$5 billion Resorts World Las Vegas, along with Resorts World New York City, Resorts World Catskills, and Resorts World Hudson Valley. In the UK, the group operates casinos in London and numerous other locations. GENM's strategic pursuit of opportunities in both Thailand and New York demonstrates a proactive approach to growth and a commitment to maximizing long-term profitability. By leveraging its global experience and existing assets, the company is well-positioned to succeed in these dynamic markets. Read related article:   Genting Calls $600M Lawsuit on Resorts World Bimini "Baseless"

A Macau-based investor has raised their stake in Australia’s The Star Entertainment Group to 6.52 percent of the company’s voting power. A Macau-based investor has increased their stake in Australia’s The Star Entertainment Group, now holding 6.52 percent of the company’s voting power. On January 10, Xingchun Wang bought more shares, raising their stake to 5.52 percent, which required notifying authorities. As of Tuesday, Wang owns about 186.98 million shares, giving them 6.52 percent voting power in the company. This slightly surpasses JPMorgan Chase & Co’s 181.97 million shares, or 6.34 percent voting power. Wang started investing in The Star in 2024, initially buying 50 million shares at more than twice the current stock price. Company records list Wang’s address as Windsor Arch, a residential building in Taipa, Macau. There isn’t much information about Wang’s other business interests. However, someone with the same name has been linked to several Hong Kong-listed companies and appeared in the Panama Papers, connected to an address in Macau’s NAPE district. Being named in the Panama Papers doesn’t imply any wrongdoing, but The Star has faced issues before with investors linked to questionable activities, particularly junkets from Macau. Authorities have also reviewed The Star’s partner in the Queen’s Wharf Brisbane project, Chow Tai Fook (CTF). After investigating alleged ties to Macau’s former top junket Suncity, regulators in Queensland cleared CTF as a suitable partner in early 2024. Read related article:   Macau Casinos Eye Strong Rebound with Lunar New Year Surge

Marina Bay Sands Expansion budget reaches $9B, featuring a new hotel tower, arena & more, strengthening Singapore’s position as a premier tourism hub. The budget for Singapore's Marina Bay Sands (MBS)'s expansion project will rise to to $9 billion, a $1 billion increase from recent revisions.  The MBS IR2 project, originally budgeted at $3.3 billion, has been adjusted to account for higher land premiums, pre-opening costs, and design changes, as detailed in a new agreement with the Singapore Tourism Board (STB). A filing by Las Vegas Sands, MBS's parent company, revealed that the updated agreement mandates MBS to pay the land premium for 2,000 square meters of new gaming space and 10,000 square meters of supporting space, along with adjustments to floor area allocations.  The agreement also extends MBS's lease with STB to August 21, 2066. This $9 billion investment will deliver a fourth hotel tower with 570 luxury suites and expanded gaming, including a distinctive "sky gaming" area in the tower's podium.  The expansion also includes a 15,000-seat arena, 110,000 square feet of meeting and exhibition space, a SkyPark, and several upscale dining options. MBS earlier said it planned to pay US$1 billion more to the Singapore Tourism Board (STB) to expand the budget of the project. The construction will still run as planned, from July 8, 2025 to July 9, 2029. The escalating costs, now 2.5 times the initial estimate, are attributed to evolving design and operational needs.  Despite the significant budget increase, MBS remains dedicated to delivering a world-class expansion that reinforces Singapore's position as a leading global tourism and entertainment hub. Read related article:   Las Vegas Sands to Invest $8B in Marina Bay Sands Expansion

Thailand's cabinet approves a draft law to legalize casinos within entertainment complexes. The bill now awaits parliamentary approval. Thailand’s cabinet has approved a draft law legalizing casinos, Prime Minister Paetongtarn Shinawatra said on January 13 through a statement. The ball is now on Thailand’s parliament to deliberate the law, which targets legalizing casinos within entertainment complexes. Paetongtarn expressed hope that the project would stimulate the economy and tourism. Currently most forms of gambling are illegal in Thailand, with the exemption of state-controlled horse races and official lottery. However, most forms of underground gambling remain rampant, with operations happening left and right around the border of the Kingdom.  Paetongtarn emphasized the benefits of swift implementation, citing Singapore's successful model where casinos comprised only 10% of a similar entertainment complex, yet significantly boosted tourism, economic growth, and GDP. She hopes for similar results in Thailand. A 5,000 baht entrance fee will be required for Thai citizens accessing the casino. Addressing concerns about potential increases in illegal or grey market businesses, the Prime Minister stated that transparency would benefit the country, generating increased tax revenue. The draft law will also be submitted to Thailand House of Representatives for consideration and enactment, though no timeline has been set. A report earlier said Thailand's Council of State   was planning to oppose a measure that would legalize casinos within Integrated Resorts, claiming it was breaching government policy.  Thailand is also studying the possibility of legalizing online gambling operations in the Kingdom, with Deputy Prime Minister Prasert Jantarauangtong saying this would be "good for the economy." Read related article:   Thailand Council of State to oppose Integrated Resort bill

LET Group & Summit Ascent will to focus on a new $1.1B Manila casino (opening 2025). They're selling non-core assets, including a Japan property & Russian casino stake. LET Group and its subsidiary, Summit Ascent, are restructuring their business to focus on a new US$1.1 billion casino-hotel project in Manila, slated to open in late 2025. This streamlining effort involves selling off non-core assets, including a property development project in Miyako, Japan, initiated in 2019, and their stake in the Tigre de Cristal casino in Russia. The sale of the Russian casino has been complicated by the war in Ukraine and associated sanctions, which have created significant challenges for their operations there. Despite these difficulties, selling their stake in Tigre de Cristal remains a priority. “The hotel and gaming operations of the Group in Russia continue to face significant challenges and uncertainties due to the ongoing and escalating Russia-Ukraine conflict, along with the associated sanctions levied against Russia,” Summit Ascent said.  While dealing with the fallout from the situation in Russia, the companies are pushing forward with the Manila project, with construction progressing as planned and new contractors being brought on board. This restructuring comes after a period of significant change for the group. The current leadership took over after the previous chairman of Suncity Group (now LET Group) was arrested in late 2021. Furthermore, trading of both companies' shares on the Hong Kong Stock Exchange remains suspended due to regulatory concerns stemming from a previous attempt to sell the Russian casino without proper shareholder approval. In essence, LET Group is streamlining its operations to prioritize the Manila development while addressing past regulatory issues and navigating the complexities of its Russian holdings. Read related article: Okada Manila Operator Named IGSA Member

Galaxy Entertainment Group (GEG) plans to bid for a Bangkok IR license in Thailand, per Goldman Sachs. Targeting Bangkok for its tourism potential. Macau-based gaming giant Galaxy Entertainment Group (GEG) has signaled its intention to bid for an integrated resort (IR) license in Thailand, focusing exclusively on a Bangkok location, according to a recent report from Goldman Sachs.  Galaxy's interest comes as Thailand progresses towards legalizing casinos, with a draft bill currently under review by Parliament. If approved, the bill could trigger a Request for Proposal (RFP) process as early as mid-2025, allowing major international operators like Galaxy to submit their bids. Goldman Sachs, based on observations from their November 2024 Non-Deal Roadshow (NDR), reports that Galaxy views Thailand as a potentially lucrative market, estimating a conservative annual gross gaming revenue (GGR) of $3-5 billion. The timeline for legalization anticipates potential approval of entertainment complex legislation by May 2025, potentially paving the way for legal casinos by the end of the decade. This timeline aligns with previous targets of opening an IR by 2029, ahead of Osaka. While Thailand plans to issue around five gaming licenses, with three outside of Bangkok, Galaxy has strategically chosen to concentrate solely on the capital. The company believes Bangkok’s status as a global tourism hotspot offers greater certainty for return on investment. This focus aligns with Thailand's recent tourism success, with over 35.54 million foreign tourists visiting in 2024, a 26.27% increase year-on-year, driven by relaxed entry rules and visa exemptions. Goldman Sachs also revealed that Galaxy is open to forming partnerships with local businesses or companies with strong regional ties to strengthen their bid. This collaborative approach could prove beneficial in navigating the local landscape and securing a license. Furthermore, the Thai government is reportedly considering legalizing online gaming, a development that Goldman Sachs believes could significantly boost the market. Drawing parallels with the Philippines' experience, estimates suggest a potential online gaming market size of $2-3 billion in Thailand. This dual approach, encompassing both land-based and online gaming, could position Thailand as a leading gaming jurisdiction in Asia, rivaled only by the Philippines. Experts at the Thai Entertainment Complex Summit, attended by Asia Casino News (ACN) as lead media partner, highlighted Thailand’s potential to draw gamblers from large existing markets   such as China, India, and Russia.  Experts doubled-down on Thailand’s appeal in drawing more heavily from nations with existing gaming interest.  Ben Lee of IGamiX Management and Consulting Ltd. suggested Thailand would capitalize on this existing demand, while Lilly Choi-Lee of TravConsult noted the distinct cultural and entertainment offerings of Thai IRs would differentiate them from regional competitors, particularly appealing to Chinese gamblers. CLSA Ltd. analyst Jeffrey Kiang further emphasized the importance of catering to Thailand's diverse existing tourist base with unique experiences, rather than solely pursuing new visitors, to establish a distinct identity for Thai integrated resorts. Read related article:   Thailand Proposed IRs to Draw Gamblers From These Countries

Innovative provider expands into Belgium with StarCasino, bringing classic slot games and a smart subscription-based model to its second market via a new deal. Cherry Play, the in-demand content provider with a unique subscription-based commercial model that’s taking the market by storm, has expanded into the Belgian market through a deal with leading online casino brand, StarCasino.  The partnership means players at StarCasino.be can now access the provider’s proven slot content including titles like Multi Banks, Super Coin, Chef Super Bet and others as well as its Golden Cherry Jackpot System. These games, which have been built on Bragg Gaming’s cutting-edge technology stack to provide unrivalled quality for players and a smooth, seamless integration for operators, have already hit the mark with players in the Netherlands where they are live with several top-tier casino brands.  StarCasino becomes the first operator in Belgium to offer Cherry Play’s games to players and to take advantage of the supplier’s innovative subscription-based model. Instead of the industry-standard revenue share, StarCasino pays a monthly licence fee to access the provider’s games.  This allows StarCasino to give Cherry Play’s titles much better lobby positioning and increased promotional spend as the operator gets to keep the vast majority of the revenue each title generates.  Cherry Play only made its debut in January this year but has already built huge momentum behind the studio, launching its first six titles and integrating with big-name operators in the Netherlands and now Belgium.  Olga Bejela , Cherry Play CEO , said: “Launching in Belgium with StarCasino is another milestone moment for Cherry Play as we continue to bring our proven slot games and innovative subscription model to operators in regulated markets across Europe and beyond.  “Demand for slot content is high in Belgium and titles such as Multi Banks and Super Coin have been designed to deliver thrilling gameplay, and potentially big wins, so will absolutely hit the mark with StarCasino’s players.  “It’s also great for the operator to be able to take advantage of our subscription-based model which is proving to be a big draw.”  S. Maene, Director at StarCasino , added: “Cherry Play’s first run of games captures the essence of a slot but with its own unique twist on the gameplay to ensure a thrilling player experience from the first spin to the last.  “If its games caught our attention, its unique subscription model was a catalyst for getting the deal over the line as soon as possible and we are genuinely pleased to be the first brand in Belgium to be able to offer its games to our players.” Related article: Cherry Play Names New Commercial Account Director

The financially embattled The 13 Hotel has a license to operate until the end of 2025, according to reports, keeping its doors open despite ongoing challenges. Macau's The 13 Hotel now has the license to operate until the end of 2025, according to a news report. The embattled hotel was hit with financial strains in the past, which included an apparently thwarted plan to establish a casino.  The Macao Government Tourism Office (MGTO) confirmed this in an exclusive report by Inside Asian Gaming which was published on January 8. While the license allows the hotel to stay open, there are some limitations. The hotel's two restaurants are currently closed for repairs and maintenance.  Originally, reports suggested the license was valid until the end of 2024, with a renewal period between October and December. However, the MGTO later confirmed the license extends through 2025. This comes after the hotel's parent company went bankrupt and a failed attempt to sell the property.  Online booking attempts consistently show "no vacancy," even for future dates. This was also an issue last year when the hotel reportedly only accepted bookings by phone or in person. Recent phone calls to the hotel have not been answered. The MGTO has stated that there are no current rules about how hotels take reservations. Businessman Stephen Hung envisioned it as a luxury destination for high-rollers, but construction and funding delays, along with the failure to secure a gaming license, caused major setbacks. It finally opened in 2018, years behind schedule, without a casino and with unfinished rooms, costing US$1.6 billion. Its location and design have also drawn criticism. The hotel had trouble attracting guests. One reason was its failure to partner with a Macau gaming operator for a casino, according to Asia Gaming Brief. Documents filed with the Hong Kong Stock Exchange showed the hotel had discussed a casino partnership with Melco, led by Lawrence Ho. However, when The 13’s parent company started to fail, Melco denied any plans to help the hotel open a casino. The hotel’s former parent company, South Shore Holdings, became insolvent in 2021. This led to the bankruptcy of The 13 Hotel Management Company and an attempted sale in March 2024. Although 24 companies showed interest, the sale's outcome is still unknown. Read related article: What Will Happen to Satellite Casinos of Macau?