Online Casino Edition – Casino News News about online casinos and gambling

June 8, 2012

Spanish Authorities Demand Taxation

Filed under: Casino — Tags: , — OCE News @ 12:00 am

Only weeks ahead of the first issuing of Spanish gambling licenses, the authorities did a volte-face and demanded that the applicants return backdated taxes for the previous four years. This unfortunate and game-changing surprise was not welcome and the poker information website Pokerfuse reported that many big Spanish gambling operators may face huge financial losses as a result. Of these, Bwin.Party is estimated to be losing around Euro 60 million, whereas it is a whopping Euro 200 million for PokerStars! The latter is actively considering repaying the amount, but the others may find it rather difficult to afford it and could end up withdrawing their license applications. According to Pokerfuse, the Gaming Act passed during the previous year had forced operators to get their licenses from January, 2012. But, deadlines were missed and there were consequent delays in regulation. The gambling operators were permitted to continue their operations till the licenses came through. When the licenses would finally come through, they would have to be prepared to meet the tax bills from July 2011, when the Act had been passed. This new move by the Spanish government for retrieving four year taxes is bound to have a lasting impact both on the business and monetary calculations of these companies.

Nutblocker bids adieu

Nearly a year and a half after it was launched, the poker educational website Nutblocker finally bade farewell. This website had been the brainchild of many leading internet stalwarts to enhance the player’s knowledge regarding pot Limit Omaha & Mixed Games. It was designed to improve interaction among the players and contained expert advice for their benefit including interviews with the most successful players. In March of this year, the company which had launched the Nutblocker magazine for less than $30 discontinued it. In a specification it was upheld that all the buyers had been duly compensated for all purchases made. The magazine and other content were left free on the website as a goodwill gesture.

Irish Bill to raise Euros

The politicians in Ireland are all set to pass an enactment prior to the summer break in the Parliament. This is directed to impose a one percent tax on the turnover for all gambling operators that are dealing in Irish bets. It is believed that during the first year, the taxes are going to be paid by 77 percent operators. This is expected to bring in 50 million Euros. The companies like Boyle Sports and Paddy Power are regarded as the most targeted betting companies. A Betfair commissioned report conducted by experts at PricewaterhouseCoopers holds that the taxes are expected to absorb 77 percent of the market from 2013 to 2016 and generate nearly 50 million Euros.

Partnership for Gaming

Buzz Sports which is based out of Leeds is all set to partner with Boylesports to launch ZonePlay vis-à-vis the sports betting site called Boylesports.com. This launch will then allow UK and Irish punters to bet on something which happens next in addition to the current betting markets which this sports site already offers. ZonePlay will include English Premier League soccer, cricket, tennis, baseball, basketball, and NFL.

November 24, 2011

Entertainment Gaming Asia To Increase Revenue Sharing In The Philippines

Filed under: Casino — Tags: , — OCE News @ 12:00 am

Entertainment Gaming Asia Inc. has announced on October 23rd that the company has entered into an agreement to increase its revenue sharing rights in its Philippine gaming participation operations. The Entertainment Gaming Asia is a leading provider for electronic gaming equipment and it intends to increase its revenue sharing rights in one of its best performing venues in San Pedro VIP club, Philippines.

The agreement further states about the company’s strategy to improve focus on its assets and returns on the highest potential venues in the gaming market. It is now focusing to increase the revenue share of this venue in Philippines net win to 35 percent. The strategy is also to take control over the marketing as well as promotional campaigns and strategies.

Under the participation contract in the Philippines, San Pedro VIP Club proves to be the most promising venue as it is very popular, located in suburban district of San Pedro, Laguna. This place is approximately 20 minutes from Manila. In the San Pedro VIP Club, around 180 electronic gaming machines seats are in operation. The average daily win per machine is approximately $70 to $80, which makes total win on 180 machines as $12600 to $14400.

New Agreement, Increase in Revenue Share

The Entertainment Gaming Asia’s existing participation business in Philippines is operated by the Government operator PAGCOR, which entered into a machine lease contract with the “Proponent.” As per the terms of the PAGCOR contract and the Agreement of Lease, the net win after tax was to be shared among PAGCOR, the Proponent, and Entertainment Gaming Asia in the ratio of 65 percent, 18 percent, and 17percent, respectively.

But, under the terms of the contract signed on 23rd October, 2011, the Company will take over the role of the Proponent and will work with PAGCOR directly. Therefore, its revenue shares will increase from 17 percent to 35 percent and PAGCOR will maintain the share of 65 percent. In this process, Entertainment Gaming Asia will also incur some of the venue’s operating expenses. These operating expenses include property rental, equipment maintenance, and marketing.

Final Closing after Approval of Other Things

The final closing of this agreement will depend on some other things like PAGCOR’s consent and approval and agreement on the extension of the PAGCOR contract with the Company till the mid-2016. After fulfilling these conditions, the Agreement will be closed and it will be effective retroactively from August 1, 2011. In this process, the total consideration payable by the Entertainment Gaming Asia is around $1.3 billion, which will be funded by the internal cash resources of the company.

The CEO of Entertainment Gaming Asia, Clarence Chung, commented that the company is pleased to have the opportunity to work directly with PAGCOR. He also commented on the company’s strategy to improve the growth potential of their Philippines operations by focusing the resources on this promising market. With greater flexibility and control over operations and marketing, the Company intends to implement some initiatives based on customer service and loyalty programs.

The company hopes to strengthen its overall position in the Asian market by this investment and new agreement. This positions the company better to look forward to gaming expansion opportunities including their casino development plans in Indo-China region as well.

September 19, 2011

MGM’s New Macau Casino Deal

Filed under: Casino — Tags: , , — OCE News @ 12:00 am

The MGM Grand, Macau, is one of the many casinos and resorts that come under MGM Resorts International. The hotel cum resort opened its doors in Macau in 2007. The Grand stands as a 35-story structure with 600 rooms. The casino houses more than 1000 slot machines and as many as 427 gaming tables. Like all its casinos, the golden lion stands in front of the casino welcoming the guests to the MGM experience. The resort was opened in Macau as a joint venture with Chinese casino magnate Stanley Ho’s daughter Pansy. The joint venture started as a 50–50 deal.

In 2011 the 50–50 venture changed. MGM Resorts International was finally getting controlling interest in the Macau venture. This is on account of a new deal with Pansy. The new deal would give MGM 51 percentage, which is controlling interest in the casino. Pansy would get 29 percent and the remaining would be offered as public offering. The proceedings from the public offering would go to Ho’s ventures. Miss Ho would also receive $300 million worth of MGM’s senior convertible notes. Controlling interest in a casino in the gambling capital of the world is the target. This they have been able to achieve with this new deal with Pansy Ho. With the deal, MGM also aims to lead in the Macau gambling industry where other casino giants like Wynn and Las Vegas Sands are already leading the show.

The IPO is worth $1.5 billion. The fact that MGM is passing on that fortune to Pansy Ho comes as a surprise to many economists and financial experts. Though MGM would not gain from the IPO, the leaders of MGM state that the deal would only bring it benefit in the long run. In Macau casino revenues are skyrocketing every year. In the year 2010 alone, there was a rise in total gambling revenues that were somewhere near 45 percent. Therefore, the move by MGM to make a sacrifice in light of the bigger gains that await it is justified. There are also criticisms regarding Pansy’s decision to give up controlling interest in the venture. Some even criticize MGM of taking undue advantage of the lack of business expertise of Pansy. The company still claims that no such intent was there and the deal was struck after many days of negotiations with Pansy and her managers.

MGM further aims to strengthen its foothold in Macau by gaining land rights in Macau’s Cotai area. Here they plan to build a new casino. Other casinos like Galaxy and Wynn are set to open shop there. The Cotai area of Macau is the presently booming center where most gambling kings are looking on with interest.

MGM Resorts International is now more focused on its Macau operations. Las Vegas is diminishing in its capacity as a gambling destination. Macau has now emerged as the leader when it comes to gambling. More tourists and gamers prefer the grander settings of the Macau casinos to that of Las Vegas. As such, MGM’s strategy to build up the business in Macau is justified.

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