Gaming

Pricey Japan is best game in town for U.S. casinos

4 June 2019

Operators like Las Vegas Sands and MGM have vowed to spend $10 bln each developing new resorts, and may pledge more. A tough rule book makes the country particularly attractive to Americans, given compliance risks in other emerging markets. But a bidding war will reduce returns.

Macau’s Las Vegas ambitions face reality check

29 May 2019

Millions of Chinese visitors are swarming the tiny territory across a new bridge. The $38 bln gaming hub doesn’t seem to know what to do with them, and is mulling a tourist tax to reduce congestion. The city’s Nevada-inspired economic diversification strategy is due a rethink.

China’s game makers face a shapeshifting boss

24 April 2019

New rules provide some clarity and point toward fewer and blander video-game titles after a freeze on approvals last year. That should be manageable for giants including the $475 bln Tencent. Yet the whims of a revamped regulator finding its feet still warrant a discount.

Singapore raises stakes for Macau casino permits

24 April 2019

Las Vegas Sands and Genting will invest some $7 bln and endure harsher rules to extend their duopoly in the city-state. Investors flinched, wiping $2 bln off shares. It increases the odds that the Chinese gambling hub will demand more onerous terms from Wynn, MGM, and rivals, too.

Australia’s Crown could be Plan B for Japan losers

12 April 2019

James Packer’s $6 bln casino operator is effectively up for sale after Wynn submitted an offer and then ended talks. Crown would be a decent option for rivals that don’t win a licence in Osaka or Nagoya. The likes of Galaxy, Genting or Melco may yet train their sights Down Under.

Wynn splurges on a new beginning Down Under

9 April 2019

The casino giant wants to buy Australia’s Crown Resorts for $7 bln. Both companies are on the rebound after break-ups with billionaire bosses Steve Wynn and James Packer, and seeking fresh starts. But a hefty 26 pct premium bets too many chips on the return of big spenders.

Cambodia’s casino king faces new poker hands

11 March 2019

Malaysian tycoon Chen Lip Keong is enjoying an extraordinary monopoly in Phnom Penh: his $6 billion flagship group, NagaCorp, grew net profit by more than 50 percent last year. But new rules and an influx of Chinese tourists will inspire upstarts to try their luck too.

Macau’s festive blowout defies economic worries

27 February 2019

The $38 bln Chinese gambling hub looks resilient despite concerns about slowing consumption onshore. Visits rose by 27 pct over the Lunar New Year holiday; quarterly results at Melco and MGM also inspire optimism. Efforts to attract the up-and-coming middle class are paying off.

Caesars can meet its activist high-roller halfway

22 February 2019

Carl Icahn has amassed roughly 10 pct of the casino operator and wants it to consider a sale. Even at Caesars’ apparent low valuation there’s no easy buyer, nor any reason to sell in haste. Icahn isn’t a bad bet for helping turn things around, though.

Nintendo brushes up gaming skills for 2019

31 January 2019

The $36 bln Japanese video-games giant smashed quarterly earnings expectations thanks to new titles. Even after cutting its Switch console sales target, the maker of Super Mario hits looks on track to challenge rival Sony’s PS4. Nintendo’s beaten-down shares are due a boost.

Messy Manila casino deal is worth the gamble

23 January 2019

Japanese tycoon Kazuo Okada wants to stop a backdoor listing for Universal Entertainment’s $2.4 bln resort that bears his name. Going public amid a nasty ownership brawl invites extra risks, but the fast-growing Philippine market holds too much promise. Better to roll the dice.

Fortnite outplays media titans in a battle royale

18 January 2019

The video game may have raked in as much as $2.4 bln in sales last year, more than any 2018 Hollywood blockbuster. Now Netflix says it is threatened too. Success comes from mass appeal: both young and old gamers are hooked. Streaming giants and movie outfits are right to be alarmed.

Ethical investing is cherry on private equity cake

18 December 2018

Bridgepoint is bidding $1 billion for Swedish gaming firm Cherry. The buyout group’s scope to pay a big premium and still get a good deal is due to public markets’ aversion to “sin stocks”. Ethical investing is supposed to improve behaviour, not private equity coffers.

China’s video-game bulls are running out of lives

3 December 2018

Developer iDreamSky will list in Hong Kong at a price tag of roughly $1 bln, less than 10 times expected earnings. Its backer and larger peer Tencent trades at 30 times. The discount signals a mainland online crackdown is taking its toll: valuations have further to fall.

Chip industry’s new paradigm looks like old one

16 November 2018

As cutting-edge semiconductors got harder to make and demand boomed from new fields like bitcoin mining, top manufacturers seemed invulnerable. Shrinking sales forecasts from Nvidia and Applied Materials show companies are as prone as ever to economic cycles and excess inventory.

Casino M&A regulatory pushback worth the gamble

8 November 2018

More trouble at Wynn could make it a takeover target. MGM may place its chips on Caesars. Watchdogs take a hard line on casino deals. But with legalized sports betting and a drop in table gambling challenging the Las Vegas Strip, bulking up may be the safest way to beat the odds.

Democratic donors claim tarnished returns crown

7 November 2018

Casino magnate Sheldon Adelson has little to show for the $113 mln he gave the GOP in the midterms. Financier Tom Steyer donated less than half as much to Democrats and saw them win the House. But with fundraising hitting a record $5.2 bln, divided government is a meager result.

Henry Kravis joins gaming value “emote routine”

29 October 2018

The billionaire’s private-equity firm is investing in the company behind the Fortnite craze at a $15 bln valuation. Epic has shown free games can be lucrative. But the deal clocks in at what seems an over-enthusiastic price. It’s a bet Epic can stay ahead of teenage fads.

Record lottery threatens Silicon Valley self-worth

23 October 2018

A few months unclaimed has left the top U.S. prize at $1.6 bln. A successful punter or several will become at least as well off as founders of a hefty tech unicorn. Rubbing shoulders on rich lists might rankle with startup billionaires – but their wealth owes plenty to luck, too.

Movie-themed casino IPO sticks to messy script

19 October 2018

Macau-based Studio City, part of Lawrence Ho’s $9 bln gambling empire, made a stellar New York debut with a 24 pct pop. The listing provides some needed capital and could help existing minority investors eventually stage an exit. It also features Melco’s costly complex structure.