CASINO

Macau estimates cut by analysts; Cotai developments have to demonstrate non-gaming commitment; Wynn files new suit

TAGs: Cotai, Galaxy Entertainment Group, Macau, Melco Crown Entertainment, Wynn Resorts

macau newsbitesMacau has seen estimates for their casino industry cut by analysts due to weak growth in the VIP market. Deutsche Bank analyst Karen Tang dramatically cut her earlier estimates of 11 percent to 7 percent. In a client note she explained that poor VIP growth is set to worsen in Q4 2012. This also led her to issue a growth estimate of 0 percent for VIP gross gaming revenue in 2013, down from her original prediction of 5 percent. She also downgraded all operators to hold from buy, except for Melco Crown Entertainment and Galaxy Entertainment Group. Talk about toys outta the pram!

Future gaming developments will have to demonstrate a commitment to non-gaming activities if they are to be granted a higher number of live gaming tables. Secretary for Economy and Finance, Francis Tam Pak Yuen, told the assembled media on Friday that each new Cotai property would be allocated tables depending on the non-gaming elements. Tam is quoted by government-owned TDM as saying: “We decide the number of gaming tables according to the non-gaming components and the overall development plan. When the operators are making their proposals they would want to have, for example, 500 gaming tables. But that’s just a number written down in their proposals.”

Wynn Resorts is back on the lawsuit trail and is suing an executive now working for Melco Crown Entertainment. Las Vegas Sun reports that Wynn International Marketing filed a suit last week against Yi Lu who worked as a marketing executive for the firm until resigning in May 2012. Wynn claim Lu broke a three-year employment agreement that was signed in February 2010 as well as handing over confidential information to Melco Crown about Wynn.

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