Hot news

Dublinbet

Dublinbet

DublinBet.com is an innovative and classy casino and card room. It offers classic online casino game favourites plus some of the best live dealer games on the net for January 2012.

Through the latest webcasting technology you can interact with dealers from the privacy of your home (or office!). The sounds and dealer action is live from the Fitzwilliam Card Club and Casino, in Dublin Ireland. DublinBet's Distance Gaming® is a 'must try even if you're not fussed for live dealer games - try the unique early payout

+ More info...

888

888

Do you find it hard to get to a live casino to play poker? Then simply come to 888poker, the best poker online room in Australia and experience the same thing with no hassle.888 Casino is one of the most famous casinos in cyberspace, thanks to some of the most eye-catching promotions in the industry and an ongoing commitment to innovation. Owned and operated by a subsidiary of 888 Holdings plc, which is listed on the London Stock Exchange, 888 Casino was launched in 1997 and more than 25 million people have played here since.

+ More info...

365 Casino

365 Casino

Enjoy a huge selection of casino games at 365 Casino with monthly bonuses and weekly promotions, Play Blackjack, Roulette, Baccarat, Slots, and Video Poker and win big at 365 casino. 24hrs a day, 365 days a year Safe & secure with excellent Customer Service.

+ More info...

Elegance Casino

Smart Live Casino

The unique thing about Smart Live Casino is its live casino games. It offers live baccarat, live roulette and live blackjack where the player sees the dealer and the action unfold infront of his own eyes. They have a fully array of games as well as sports betting. The site also comes in a variety of languages.

+ More info...

Asian Casino Glut Forecast Contradicts Sheldon Adelson's 'Ten Las Vegases' Vision

E-mail Print PDF

Galaxy Macau phases 3 and 4 are part of an estimated US$21.5 billion in new gaming property development planned for the global casino hub. (Paul Yeung/Bloomberg)

© 2019 Bloomberg Finance LP

Sheldon Adelson famously declared “ten Las Vegases” may not satisfy Asia’s gaming demand. But Union Gaming analysts Grant Govertsen and John DeCree argue the current US$65 billion-plus pipeline of gaming projects may prove more than East Asia can handle, suggesting near-term development plans are “at least four times too big.” But there are still plenty of casinos putting their money on the line.

Union analysts Govertsen in Macau and DeCree in Las Vegas list more than 30 projects in the region expected to come on line by the mid-2020s. They estimate those projects will cost US$65.5 billion, roughly divided in thirds between the virgin market of Japan, global leader Macau and the rest of the region. The list doesn’t include projects that have had authorization withdrawn, such as Galaxy Entertainment’s proposed Boracay resort and Landing International’s Manila IR. Their tally also omits some projects that would seem to belong, such as Caesars Korea, a gaming addition to Laguna resort near Danang plus The Grand-Ho Tram’s expansion in Vietnam, and the Shambala casino in Russia’s Primorsky zone outside Vladivostok. Its blanket assessment of US$1 billion for Sihanoukville, where dozens of licenses have been issued, may be low. Overall, the list errs on the side of caution.

“The reality is that the current pipeline in just the existing markets (forget about Japan for now) requires Ebitda in Asia to literally double, even as the boom years in China GDP growth are behind it, and as so many of Asia’s wealthy individuals have already been captured,” the analysts write.

Union Gaming believes investments in Japan casino projects, such as Mohegan Sun's proposed Inspired Hokkaido integrated resort, stand apart from its projected Asian gaming glut.

Mohegan Gaming

They calculate major casino operators in the region totaled US$13.6 billion in Ebitda last year, drawn from primary feeder markets with GDP of US$15.5 trillion, one unit of Ebitda for every 1,141 units of GDP. Assuming “modest” annual growth of 5% for existing properties and a 20% ROI (return on investment) for new projects (ex-Japan), Ebitda for the region will need to reach US$27.7 billion by the mid-2020s, Union calculates. With no change in its ratio to Ebitda, GDP will need to growth at a compound annual growth rate of 10.7%, an unlikely prospect. (China’s annual GDP growth last topped 10% in 2010.) Viewed from the other end, annual Ebitda growth of US$1.9 billion is less than a quarter of the US$8.6 billion needed to justify projected new supply.

Goversten and DeCree separate the estimated US$22.5 billion investment in the emerging Japan casino market from their glut warning. “We view Japan as relatively insulated from the rest of Asia from an ROI perspective as 1) Japan will be a highly localized market and 2) Japan is not currently a significant contribution to GGR [gross gaming revenue] elsewhere in Asia.”

The glut argument should stimulate a thorough reassessment of gaming development across Asia. But as the authors accept regarding Japan, every development situation presents unique properties. For example, Macau can point to the city’s minuscule mainland China penetration rate–the number of visitors compared to the potential market–a fraction of the figure for U.S. gaming destinations or even regional rivals such as Manila. Moreover, even at lower rates of economic growth that depress VIP revenue, China is still minting tens of millions of middle class consumers looking for their first foreign trip, with Macau among their most logical destinations.

Phnom Penh monopoly holder NagaCorp is developing S$3.5 billion Naga3 on this site. Successful addition Naga2 is in the left background.

Muhammad Cohen

Beyond Japan and Macau, the single largest item on the region’s development menu is Hong Kong-listed NagaCorp’s Naga3 extension of its Phnom Penh integrated resort, lifting its room count above 6,000. In a new report, Morgan Stanley Asia analyst Praveen Choudhary credits Naga with the best growth prospects in Asian gaming but voices reservations about Naga3’s US$3.5 billion cost and financing.

Naga has a monopoly in Phnom Penh, but that’s no guarantee of success in  a market where locals can’t play. Strong bilateral ties between China and Cambodia help, but Naga’s strategies, including targeting ASEAN markets and second tier Chinese cities, plus relationships with China International Travel Service and constantly upgrading its offerings with Naga2 and an ongoing revamp of the original NagaWorld, are its keys to success.

“For too long Asia has been an unbelievably forgiving place to be a casino operator, thanks primarily to China’s rise,” Union warns. “With a supply glut on the horizon, factors like the quality of management and physical plant have never been more important.”

Naga’s billionaire founder and CEO Chen Lip Keong, who financed Naga2 and may finance a large chunk of Naga3, takes inspiration from a different source. “Sheldon Adelson says Asia can support ten Las Vegases,” he says. “I believe Phnom Penh can be one of them.”

Read more https://www.forbes.com/sites/muhammadcohen/2019/09/24/asian-casino-glut-forecast-contradicts-sheldon-adelsons-ten-las-vegases-vision/

You are here