The world’s biggest casino operator, Harrah’s, which operates around 50 casinos in the United States and the UK, has cancelled its Initial Public Offering (IPO). The planned issue on offer was 31.25M shares at an estimated price of $15 to $17 to rise approximately $500M of funds. The funds were to be used to add entertainment and dining provisions in existing casinos.
With the huge losses suffered by US casinos because of recession and subsequent reduced consumer spending, these funds were believed to be a welcome breather for the company. In addition, with the stock market indices signaling a thumbs-up for IPOs, it was probably a ripe time to enter the markets for private equity and majority owners of TBG Capital and Apollo Management LP. But the company officials are being tight-lipped about why they changed their mind about the IPO issue.
Also, the 2008 decision to change Harrah’s name to Caesar’s Entertainment Corp, to capitalize on the latter’s brand recognition value among customers, has passed regulatory approvals. It is officially affected from November 23, 2010. Harrah’s owns some of the most well-known gaming tournaments such as the World Series of Poker.
Gambling.com Domain Name for Sale
The domain name Gambling.com owned by Media Corp is now up for sale. It is reported to fetch about $10 million in auction. With online gambling being a new avenue for earnings and land-based casino operators still trying to cope with the mounting losses brought on by recession, the online casino scene is brimming with potential. Along with that comes the necessity for a good domain name that will lure interested visitors. This has already been recognized as the biggest names in the business plan to compete for the name. Media Corp will use the proceeds to enter other aspects of online gaming.
Sedo Holding AG will be the exclusive broker for the sale. They have prior experience selling similar domain names for millions of dollars. The company believes that the traffic and brand recall value of Gambling.com will be largely responsible for the steep price that is expected of it.
Baccarat the Leading Earner for Casinos
Gambling revenues have been largely buoyed by money earned from baccarat play. Interest in the game has led to increased volumes and therefore winnings for the house. This has helped prop up the Strip casinos’ revenue by two to three percent in September 2010. Baccarat earnings are up by 30 percent as compared to September 2009 figures, whereas both slot and table revenues are down.
Baccarat has been the major source of earnings for casinos in Macau as well where gambling revenues are considerable.
A Clampdown on the Gambling Honeymoon in Macau
The Macau Government plans to increase regulation of gambling and casino operators. Mr. Fernando Chui, the Chief Executive of the Government, wishes to encourage other industries and further development in Macau. The gambling industry has brought with it instability owing to the random nature of gambling.
Casinos such as Sands may not be able to post the astronomical profits they have done in the past in the region because of the stricter controls.
Among some of the measures to tighten gambling in Macau, Mr. Chui will no longer allow the land built over the sea to be used for operating casinos. They prefer to promote housing and other developmental businesses and services on this land.