Melco Crown Delists on Hong Kong Stock Exchange
Melco Crown is one of just six operators licensed to provide casino gambling in Macau.
Melco Crown Entertainment, a major casino operator with holdings in Macau and throughout Asia, has announced which they plan to delist their share from the Hong Kong stock market.
Based on the company, the move is being made because there clearly was small volume of trade in their stock on the exchange, and consequentially, very opportunity that is little raise additional equity there.
Since there are regulatory burdens as well as other costs associated with keeping a stock listed on the exchange, Melco Crown now feels that it isn’t worth the difficulty to have their stock offered for trade in Hong Kong.
Nevertheless, also if the delisting does proceed, investors will still manage to purchase shares of Melco Crown on New York’s NASDAQ stock exchange, in which the company’s main listing is situated.
Macau Revenues Nosedive in Second Half of 2014
The move comes after a rough year in Macau that saw revenues for the Chinese territory’s casinos drop for the first time since foreign operators were allowed to enter the market about a decade ago.
The decline into the market was largely as a result of an anti-corruption campaign through the government that is chinese which seriously curtailed the flow of funds from mainland Asia to Macau. That move battered the casinos within the half that is second of year, because of the industry seeing revenues decline by over 30 per cent year-over-year in December.
That hit the operators hard both on their bottom lines plus in the stock exchange, where investors fled from casino operators in the wake of the downturn. Melco Crown saw shares on the Hong Kong trade fall about 35 per cent within the course of the year that is last.
The delisting plan was approved unanimously by Melco Crown’s board of directors. However, it should still be approved by shareholders at a meeting that is general and approvals must be issued by the Listing Committee of the Hong Kong stock exchange.
In the event that plan experiences, shareholders will have the opportunity still to keep onto their shares or convert them to American depository stocks that may be traded on NASDAQ.
Analysts Declare Delisting Not Connected to Macau Struggles
While you can connect the delisting aided by the troubles into the Macau market, analysts say that this is a faulty connection to make, and that the move is one that is practical for Crown Melco based on logistics.
‘ I do not think there is anything sinister going on in the delisting of the Hong Kong entity,’ stated Nicholas Studholme-Wilson, a senior research analyst at Sun Hung Kai Financial. ‘If you’ve really looked over the trading volume of this stock, no institution could ever deal in this counter.
It is ridiculously illiquid as well as this very day, it’s really easy to deal in US stocks if you live in Hong Kong, so you might also just get one listing.’
Nevertheless, there is undoubtedly it had been a tough year on the Hong Kong exchange for companies tied up heavily into the Macau market. Both Galaxy Entertainment Group and the Las Vegas Sands’ subsidiary Sands China are listed in the Hong Kong stock exchange’s Hang Seng Index, a listing of blue-chip stocks traded there.
The two companies were among the three worst stocks that are performing the index over 2014, with Galaxy down 37 percent and Sands China down 40 percent. That was the contrary of the tale in 2013, an in which melco, galaxy and other casino stocks saw their values more than double on continued growth in macau year.
Online Gaming in New Jersey a Success, Says DGE
New Jersey’s Year One revenues may have fallen well short of initial predictions but regulation has been a success nevertheless, in line with the regulator. (Image: toppokersites.net)
The New Jersey Division of Gaming Enforcement (DGE) has declared the first year of online gaming into the Garden State to be a success, despite revenue being much lower than pre-regulation projections.
The very first platforms went inhabit New Jersey in November 2013, nine months after Governor Chris Christie signed a bill online that is permitting and casino video gaming into legislation, and just over one year in the message from the DGE is the fact that the system is working.
‘There have been no major infractions or meltdowns or any systematic regulatory failures that would make anyone doubt the integrity of operations,’ said the DGE in a declaration. ‘The dilemmas which have arisen have already been handled accordingly just like in the brick-and-mortar casinos. However, we are definately not out of the woods; we must carry on to be vigilant and ready to battle new challenges as they come our way.’
And while those results that are financial been disappointing, the New Jersey market soars above the other regulated states, Nevada and Delaware, said the DGE, citing a University of Las Vegas Center for Gaming study, which states that the state records for longer than 90 percent of all regulated online gaming income.
From January 2014 through October 2014, internet poker generated $25 million, 75 percent of the total Internet poker revenue in the US. Meanwhile, internet gaming overall generated $120 million.
The DGE acknowledged, however, that there have been lots casino ladbrokes reel slots type of challenges early on, such geolocation and re payment processing issues, also a certain unpreparedness from the new on line gaming site themselves.
‘One surprise from the regulatory perspective was exactly how operationally unprepared the platforms had been to implement Internet gaming in a regulated US environment,’ it stated. ‘They thought they is able to flip a switch and begin up their current system here. They quickly found out that had not been going to happen.
There was surely a learning curve for the operators to modify to the framework that is regulatory but has enhanced considerably. Companies adjusted to your new model which we believe has helped enhance the industry and raised its requirements.’
Geolocation ‘false negative’ dilemmas have been streamlined through hard work, diligence and technological enhancement, the DGE said, and huge progress has been made so that the device now has a 98 percent rate of success.
Bank Card Code to be Introduced
Looking forward to 2015, the DGE said it had been treating the concept of interstate and international compacts as a priority that is high discussions have been entered into with Nevada and the UK to this impact.
On the issue of payment processing, the DGE said it had been negotiating with New Jersey Department of Banking and Insurance and the usa Office for the Comptroller for the Currency (OCC).
Currently only around 73 per cent of Visa and 44 percent of Mastercard transactions are authorized, which is an obvious inhibitor of market growth. As an effect of the discussions, a particular credit card rule has been released specifically for gambling deals, which should be introduced by spring of 2015.
‘Even one year into the process with all the experience which has been gained, Internet gaming remains in its initial phases of development plus the industry as well as the regulators continue to study on each other,’ said DGE director David Rebuck.
GTECH Wins Rights To Mexican Lottery Deal
GTECH will be tasked with helping to modernize the offerings of the lottery that is mexican. (Image: GTECH logo)
Lottery provider GTECH has entered into a deal that is six-year offer lottery items in conjunction with partner Pronósticos para la Asistencia Pública, the main online lottery operator in Mexico.
The deal will see GTECH provide lots of instant ticket and draw-based games through the nation.
The contract, that has been signed by GTECH subsidiaries the GTECH Corporation and GTECH Servicios de Mexico, ended up being won following a competitive procedure for the deal that is lucrative.
GTECH has already been working with Pronositicos since 1987.
‘This agreement represents the extension of our almost three-decades-long commitment to increasing Pronosticos’ returns, which help social programs in Mexico,’ said GTECH Americas president and CEO Jaymin Patel.
GTECH to Provide Brand New Terminals, Service Support
The deal will see GTECH provide you with the Mexican lottery with at minimum 11,000 draw-based lottery terminals that will replace previous machines used by Pronosticos.
GTECH will even be tasked with upgrading the company’s communications community and supplying ongoing services both online and at retail places, including the growth of brand new retail channels, maintaining its online terminals, and helping develop their customer support operations.
‘For the past 27 years, GTECH has supported Pronosticos in creating a sustainable and source that is robust of for social programs in Mexico,’ said Pronosticos director general Maria Esther de Jesus Scherman Leano. ‘The continuation of this long-lasting partnership will help to modernize Pronosticos’ lottery system and launch the following phase of our growth or the benefit of this communities it acts.’
Nevertheless, the deal will not be without debate in Mexico. Two other companies that presented bids for the contract, Sorteo Games and Win Systems, complained that GTECH achieved a unjust benefit by publishing a proposal only after their submissions was indeed unsealed. Mexican authorities established a research in to the bidding process final summer time.
The fruits of the agreement will start to be seen in September, when GTECH’s brand new terminals begins to get into service. GTECH has projected revenue of over $130 million over the six years covered by the deal that is new.
Mexican Gambling Regulatory Bill Imminent
While this agreement marks a major upgrade for the services provided by the Mexican lottery, it’s not the actual only real change visiting the world’s gambling industry.
Lawmakers in Mexico showed signs to be close to passing sweeping online gambling laws towards the conclusion of 2014, with some reports saying that legislation had been imminent last month.
That became a possibility after an agreement between the National Action Party while the Party of the Democratic Revolution in the issue came in November.
This new laws would be designed to bring an end towards the many black market ‘mini-casinos’ that are scattered throughout Mexico, nevertheless they would also have an effect on the online gambling industry.
In specific, numerous poker players have expressed concerns that a segregated online poker market could be damaging to specialists in the nation, as it might limit the size of player pools on Mexico’s sites.
It may also impact some US poker pros that have moved to Mexico to continue playing at major worldwide poker sites.
The bill that is regulatory passed away a year ago by the Chamber of Deputies by a 297-32 vote. The bill will still must be approved by the Mexican Senate before it can pass into legislation.