Gaming

Crown’s China troubles upset Melco’s grand gamble

6 August 2019

Fresh allegations around the Aussie casino giant's dealings with Chinese high-rollers have drawn scrutiny Down Under. That leaves new shareholder Melco in an uncomfortable spot. It hoped to use its Crown stake to push overseas; instead, the bet is adding to investor worries.

Macau’s medium-big spenders are spoilt for choice

29 July 2019

Las Vegas Sands says revenue from wealthy middle-class punters in the Chinese gambling enclave is falling – the first slump since 2016. Local rivals like Melco and MGM, as well as other Asian competitors, invested heavily in serving them. They may have over-built.

Gamer favourite Razer’s next level demands focus

23 July 2019

The Hong Kong-listed maker of pro-keyboards wants to widen its appeal beyond gamers. It already sells phones, and is dabbling in payments. Distractions can be costly, though, and Razer's main business is doing fine. Doubling down on e-sports instead might help it turn a profit.

Tencent holds key to China’s e-sports bonanza

15 July 2019

DouYu, which lets fans live-stream top video gamers, wants to raise $1 bln in a New York IPO. Competition for star players has crushed margins. Investors will bet backer Tencent, which also owns a stake in a rival, can limit the destruction and push for consolidation.

Asia’s online gambling jackpot proves hard to win

12 July 2019

Web-based betting shops have been booming in the Philippines since local rules were reworked. Despite a glut of punters in the broader region, a market estimated at some $11 bln, seasoned operators have been hesitant to place wagers. For now, the regulatory odds remain too long.

Odds are on for Macau mogul’s gutsy global play

10 July 2019

Lawrence Ho has built Melco Resorts and Entertainment into a $12 bln casino empire stretching from Manila to Melbourne. Next, he’ll chase a licence in Osaka. Even if he doesn’t hit the Japanese jackpot, diversifying into a true global operator looks like a good bet.

Nexon suitors must clear three tough levels to win

3 July 2019

Plans to sell control of the $13 bln maker of “MapleStory” and other video games have stalled, but may yet be revived. Bidders like KKR will have to get past a messy corporate structure. Then there’s South Korean nationalism to slay. And the last big challenge is China's Tencent.

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.