
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 that they plan to delist their share from the Hong Kong stock market.
According to the company, the move is being made because there was small volume of trade in their stock on the trade, and consequentially, very little possibility to raise additional equity there.
Since there are regulatory burdens as well as other costs connected 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.
However, also if the delisting does proceed, investors will be able to still purchase shares of Melco Crown on New York’s NASDAQ stock exchange, where 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 decrease into the market was largely as a result of an anti-corruption campaign from the Chinese government, which seriously curtailed the flow of funds from mainland Asia to Macau. That move battered the casinos into the second half for the 12 months, because of the industry seeing revenues decline by over 30 percent year-over-year in December.
That hit the operators hard both on their bottom lines as well as in the stock market, where investors fled from casino operators in the wake of the downturn. Melco Crown saw shares on the Hong Kong exchange fall about 35 percent over the length of the year that is last.
The delisting plan was approved unanimously by Melco Crown’s board of directors. But, it should nevertheless be approved by investors at a meeting that is general and approvals must be given by the Listing Committee of the Hong Kong stock exchange.
In the event that plan experiences, shareholders will still have the opportunity to put up onto their shares or convert them to American depository stocks that may be exchanged on NASDAQ.
Analysts Say Delisting Not Connected to Macau Battles
While it’s easy to connect the delisting using the troubles into the Macau market, analysts say that this may be a faulty connection to make, and that the move is one that makes sense for Crown Melco based on logistics.
‘ I don’t think there’s anything sinister going on in the delisting of the Hong Kong entity,’ said Nicholas Studholme-Wilson, a research that is senior at Sun Hung Kai Financial. ‘If you’ve actually looked over the trading volume of this stock, no institution could ever deal in this counter.
It is ridiculously illiquid as well as today, it’s so easy to deal in US stocks you might as well just have one listing. if your home is in Hong Kong, so’
Still, there’s without a doubt it was a year that is tough the Hong Kong change 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, all of the blue-chip stocks traded here.
The two companies had been among the list of three worst stocks that are performing the index over 2014, with Galaxy down 37 percent and Sands China down 40 percent. That was the alternative of the tale in 2013, a year by which melco, galaxy and other casino shares saw their values more than double on continued development in macau.
Online Gaming in New Jersey a Success, Says DGE
Nj-new jersey’s Year One profits may have fallen well in short supply of initial predictions but legislation has become a success nevertheless, according to the regulator. (Image: toppokersites.net)
The nj-new Jersey Division of Gaming Enforcement (DGE) has announced the year that is first of gaming into the Garden State become a success, despite revenue being much lower than pre-regulation projections.
The first platforms went inhabit nj in November 2013, nine months after Governor Chris Christie finalized a bill online that is permitting and casino gaming into law, and just over one year in the message from the DGE is 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 issues which have arisen have already been managed properly exactly like within the brick-and-mortar casinos. However, we are far from out of the forests; we must continue to be vigilant and ready to battle new challenges as they come our way.’
And even though those financial results have 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 Research study, which states that the state reports for over 90 percent of all controlled online gaming income.
From January 2014 through October 2014, internet poker generated $25 million, 75 per cent of the internet that is total revenue in the US. Meanwhile, internet gaming overall generated $120 million.
Initial Hurdles
The DGE acknowledged, but, that there have been lots of challenges early on, such geolocation and re payment processing issues, along with a certain unpreparedness from the new online gaming site themselves.
‘One surprise from the regulatory perspective ended up being just how operationally unprepared the platforms had been to implement Internet video gaming in a regulated US environment,’ it said. ‘They thought they will be able to flip a switch and start up their current system here. They quickly discovered that was not going to happen.
There was surely a learning curve for the operators to modify to your regulatory framework but that has improved significantly. Companies adapted to your new model which we believe has helped increase the industry and raised its requirements.’
Geolocation ‘false negative’ issues happen structured through hard work, diligence and technological enhancement, the DGE said, and huge progress has been made so that the machine now possesses 98 percent rate of success.
Bank Card Code to be Introduced
Looking forward to 2015, the DGE stated it had been dealing with the concept of interstate and international compacts as a priority that is high discussions have previously been entered into with Nevada and the UK to the impact.
The DGE said it had been negotiating with New Jersey Department of Banking and Insurance and the US Office of the Comptroller of the Currency (OCC) on the issue of payment processing.
Currently only around 73 % of Visa and 44 percent of Mastercard transactions are authorized, which is an obvious inhibitor of market growth. As a result of the discussions, a unique credit card rule has been released specifically for gambling deals, which should be introduced by spring of 2015.
‘Even one year in to the procedure because of the experience which has been gained, Internet video gaming remains in its initial phases of development while the industry and the regulators continue to study from each other,’ stated DGE director David Rebuck.
GTECH Wins Rights To Mexican Lottery Deal
GTECH will be tasked with helping to modernize the offerings of the Mexican lottery. (Image: GTECH logo)
Lottery provider GTECH has entered into a deal that is six-year provide lottery services and products in tandem with partner Pronósticos para la Asistencia Pública, the main online lottery operator in Mexico.
The deal will see GTECH provide a number of instant admission and draw-based games through the nation.
The contract, that was finalized by GTECH subsidiaries the GTECH Corporation and GTECH Servicios de Mexico, had been won following a competitive procedure for the deal that is lucrative.
GTECH has already been working with Pronositicos since 1987.
‘This agreement represents the continuation of our almost commitment that is three-decades-long increasing Pronosticos’ returns, which support social programs in Mexico,’ said GTECH Americas president and CEO Jaymin Patel.
GTECH to give you New Terminals, Service Support
The offer will see GTECH give you the Mexican lottery with at minimum 11,000 draw-based lottery terminals that will replace previous machines used by Pronosticos.
GTECH will also be tasked with upgrading the company’s communications network and supplying services that are ongoing online and at retail areas, like the development of new retail channels, keeping its online terminals, and helping develop their customer care operations.
‘For days gone by 27 years, GTECH has supported Pronosticos in generating 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-term partnership will help to modernize Pronosticos’ lottery system and introduce the following phase of our growth or the power of the communities it serves.’
But, the deal has not been without controversy in Mexico. Two other companies that presented bids for the contract, Sorteo Games and Win Systems, complained that GTECH achieved a unfair advantage by publishing a proposal only after their submissions have been unsealed. Mexican authorities established an investigation to the bidding process summer that is last.
The fruits of the agreement will begin to be seen in September, when GTECH’s brand new terminals will start to go 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 ladbrokes casino and games marks a major upgrade for the services provided by the Mexican lottery, it isn’t truly the only change coming to the nation’s gambling industry.
Lawmakers in Mexico showed signs to be close to passing sweeping online gambling regulations towards the conclusion of 2014, with some reports saying that legislation had been imminent month that is last.
That became a chance after a contract involving the nationwide Action Party therefore the Party of the Democratic Revolution in the issue came in November.
The newest regulations would be designed to bring an end towards the many black colored market ‘mini-casinos’ that are scattered throughout Mexico, nevertheless they would likewise have an effect on the gambling industry that is online.
In specific, numerous poker players have expressed concerns that a segregated internet poker market could be damaging to specialists in the nation, as it could limit the dimensions of player pools on Mexico’s sites.
It may also affect some US poker professionals that have moved to Mexico to continue playing at major worldwide poker sites.
The regulatory bill was passed last year 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 law.
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