Business/Financial
Japanese Pachinko Tycoon Kazuo Okada Sues Wynn Resorts
TOKYO (Associated Press) Japanese pachinko tycoon Kazuo Okada has filed a lawsuit in Tokyo District Court seeking $140 million in damages from casino operator Wynn Resorts.
Universal Entertainment said in a statement Wednesday that it is seeking damages for harm caused to its share price and business due to Wynn's decision to remove Okada as a board member and reclaim the $2.77 billion of shares in the company owned by Okada's company, Universal Entertainment Corp.
888 Poker in Talks With Facebook Regarding ‘Real Money’ Online Poker
888 Poker has begun talking with Facebook, the social media giant, to bring “real money” online poker to jurisdictions where such activity is permitted, a la Great Britain, according to a report on eGaming Review.
The news comes amidst reports that 888 Holdings second quarter costs have put a strain on margins, though the company is realizing a pretax profit of $18.36 million for the half year ended June 30, compared with loss of $22.10 million a year earlier. Revenue advanced 21% to $186.4 million.
Zynga Chief Creative Officer Mike Verdu Exits to Start New Gaming Co, Backed by Zynga
Zynga’s Chief Creative Officer Mike Verdu may be on his way out the door, but his new online gaming venture will have backing from none other than….ZYNGA.
Without revealing the name of his new venture, Verdu disclosed that Zynga will be a primary investor.
Bid Farewell My Pretty! eBay Bans Gambling Spell Potions
The online auction site eBay on Monday announced it will no longer be permitting the sale of magic potions, one of which claims to help individuals win at gambling.
“Windfall Money Riches Fortune Gambling Good Luck Spell” ($8.99) has been cut along with “magical demon destroyer potion” ($51), “powerful female succubus lover spell” ($24.99) and a number of voodoo dolls.
eBay SPELLed it out in plain English, releasing this statement regarding the policy decision:
Galaxy's H1 Net Profit Jumps Ninefold on New Casino
HONG KONG - (Reuters) - Macau casino operator Galaxy Entertainment, posted a ninefold increase in first-half net profit, beating expectations as its new casino cashed in on a steady flow of Chinese visitors keen to try their luck in the world's largest gambling destination.
Although China's economic slowdown is threatening to rein in the flow of visitors that made Macau one of the fastest-growing economies in 2011, Galaxy is seen as better positioned than most rivals as its new casino benefits from high traffic on Macau's glitzy Cotai strip.
Probe Requested Into Revel Casino Financial Troubles: Credit Relief Obtained
ATLANTIC CITY, N.J. (Associated Press) - Atlantic City's newest casino has some more room to breathe.
Revel signed a new credit deal Wednesday night allowing it to borrow up to $100 million.
That deal came hours before a union president called on state casino regulators to investigate whether Revel is financially stable - a key requirement for running a casino in New Jersey.
Revel CEO Kevin DeSanctis says the credit deal guarantees the business adequate operating funds through 2013.
Springfield Mass Might be Getting Massive New MGM Casino
SPRINGFIELD, Mass. — (Associated Press) - Casino giant MGM Resorts International re-entered the Massachusetts casino sweepstakes on Wednesday with an ambitious $800 million plan for a resort entertainment complex in the heart of downtown Springfield.
Revel Casino Downgraded by Moody’s
Troubled Revel Casino has been downgraded by Moody’s Wednesday.
The newest Atlantic City casino reported the biggest losses in that New Jersey gambling Mecca during its first several months of operation.
Ailing Revel Casino Seeks Help From Lenders
ATLANTIC CITY, N.J. -- (Associated Press) - Atlantic City's newest casino is seeking some breathing room from its lenders.
Following a slow start out of the gate and a $35 million operating loss, Revel is asking its lenders to increase the amount of credit it can draw on.
The casino, which opened in April, has $30 million worth of credit, but wants to increase that to $100 million.
Thiel Sells 20 million Facebook Shares After IPO Lockup Expired
NEW YORK — (Associated Press) - Peter Thiel, one of Facebook’s earliest investors and a member of its board, was among the insiders selling stock in the social network after a lockup expired last week.
A regulatory filing on Monday said that Thiel, a former CEO at PayPal sold about 20 million shares of Facebook through affiliates such as his Founders Fund and other entities last week. The shares were sold on Thursday and Friday for between $19.27 and $20.69, for a total of about $396 million.
Playtech, iPoker Internet Poker Network’s Teddy Sagi to Float Energy Company Genesis
Teddy Sagi, the Israeli billionaire who founded online gambling software firm Playtech and its Web poker network iPoker, is set to float his energy company on London’s AIM this week.
Genesis Energy, a Middle East focused gas explorer, is 40 percent owned by Sagi.
It is his intent to raise between $90m-$120m through the Initial Public Offering, valuing the group’s equity at as much as £500m.
If successful, the IPO would be the largest on Aim this year.
Tottenham Hotspur, Everton Football Clubs Join Forces With Betting Firms
Just days after the world’s largest sports betting company, Bwin, announced it has joined forces with publicly traded Manchester United as part of a sponsorship deal, two more betting firms have announced shirt sponsorships with Premier League football clubs.
Revel in Atlantic City Loses Money First 3 Months of Operation: Other AC Casinos See Profit
ATLANTIC CITY, N.J. (Associated Press) — Atlantic City's newest casino lost $35 million in its first three months of operation, while the gambling resort's other 11 casinos posted an increase in gross operating profit.
In a report issued Friday by the state Division of Gaming Enforcement, Atlantic City's casinos excluding Revel showed a 12.5 percent increase in profit from the same period in 2011, from $136 million to $153 million.
However, revenues at the 11 casinos fell about 8 percent compared to 2011's second quarter, from $855 million to $785 million.
Facebook Shares Hit Another All Time Low
By Alexei Oreskovic
(Reuters) - Facebook Inc (FB.O) shares sank as much 4.3 percent on Friday to set a new low, a day after early investors got the green light to sell for the first time.
More than 270 million shares owned by the early investors became available for trade on Thursday after a 3-month curb on sales ended. That's more than one-half the 421 million shares sold in its initial public offering on May 18. [ID:nL2E8JG39E]
Zynga Poker Coming to Nokia Asha Touch Devices
Nokia today announced they will bring Zynga Inc.'s global hit games, Draw Something and Zynga Poker, to Nokia Asha Touch devices in Q3 2012 as part of their partnership announced earlier this summer. Nokia Asha Touch users can soon challenge their friends to a round of the popular social drawing and guessing game, or enjoy their own virtual poker match. Zynga's Draw Something and Zynga Poker will both be free to download from the Nokia Store.
Facebook Hits New Low as IPO Lock-Up Ends
SAN FRANCISCO – (Associated Press) - Facebook's stock plunged to a new low Thursday after the expiration of a ban that had prevented some early investors and insiders from dumping millions of additional shares they own in the social-networking leader.
Zynga Adds Real Money Gambling: Spends $75k on Lobbying Efforts
The Wall Street Journal late Wednesday reported that Zynga, the publicly traded social gaming behemoth, has spent upwards of $75,000 lobbying in the United States to legalize online gambling. The primary focus up to this point appears to be in the state of California, where a current measure to legalize Web poker in the Golden State is expected to die by month’s end.
Bwin Signs Three-Year Deal With Football Club Manchester United
The world’s largest online sports betting firm, Bwin, confirmed on Thursday that it has signed a three-year sponsorship deal with England Premier League football club Manchester United for an undisclosed amount.
Facebook Insider Lockup Ending, Share Impact to be Seen Thursday
On Thursday (August 16, 2012) we will get to see how Wall Street reacts to a deluge of Facebook shares hitting the market following the end of a so-called “lockup period”.
Since the largest social media network went public back in May, the share price has fallen from a peak of $45 to Wednesday’s closing price of $20.74.
Reuters Doris Frankel suggests the stock's slump may actually work in Facebook’s favor this week as insider’s may be less inclined to dump the 271 million shares that are unlocked on Thursday, hopeful of a fast recovery.
SkyCity Profits Up Nearly 13 Percent on Year
Aug 15 (Reuters) - New Zealand gaming company SkyCity Entertainment Group on Wednesday said its profits for the year rose almost 13 percent on improving revenue.
Sky City, which owns or has interest in four of the country's six casinos and two in Australia, reported a net profit of NZ$138.5 million ($111.7 million) in the 12 months to June 30, up 12.6 percent from NZ$123 million last year.
A Reuters estimate based on three analysts forecast a profit of NZ$142.2 million.
SkyCity announced a final dividend of 8 cents per share, unchanged from a year ago.
MGM Posts 2nd Quarter Loss, but Revenue Surges 29 Percent
(Associated Press) - MGM Resorts International on Tuesday posted a second-quarter loss double what Wall Street was expecting, but revenue surged 29 percent on gambling and hotel room gains.
Shares rose 12 cents to $9.38 as the market opened.
The Las Vegas company, which runs the MGM Grand, Bellagio, Mandalay Bay and other properties, lost $145.5 million, or 30 cents per share, compared with a year-ago profit of $3.44 billion, or $6.22 per share.
Foxwoods CEO Sees Business Shift
HARTFORD, Conn. (Associated Press) — Increased gambling competition is forcing the largest casino in the Western Hemisphere to shift its business to include more non-gambling enterprises such as retail and conferences, the chief executive of Foxwoods Resort Casino said Thursday.
Scott Butera, CEO of the Indian-run casino, said in an interview with The Associated Press that Foxwoods anticipated the success of New York's Aqueduct Racetrack "racino."
"We planned for the effects of Aqueduct," Butera said.
Moody’s Investment Service Backs Mohegan Sun Purchase of Resorts Casino Hotel
HARTFORD, Conn. – (Associated Press) - A ratings agency says the deal in which Connecticut-based Mohegan Sun casino operators will manage Resorts Casino Hotel in Atlantic City could boost the Mohegan tribal authority's management venture.
Moody's Investors Service said Wednesday that to the extent the Mohegan Tribal Gaming Authority can improve the performance at Resorts and develop a successful track record in Atlantic City's challenging market, the deal could result in more management contract opportunities.
Mohegan Sun Takes Over Atlantic City Resorts Casino Hotel
ATLANTIC CITY, N.J. — (Associated Press) - The tribe that owns the Mohegan Sun casino extended its reach in the East on Tuesday by taking over operations of Atlantic City’s oldest casino, planting itself in the region’s gambling mecca as an alternative to luring tourists to its slot machines and poker tables in eastern Connecticut.
Real Money Online Gambling Doesn’t Help Facebook as Shares Continue Skid
Facebook Inc. extended its decline through Tuesday (August 7, 2012) with the stock falling 5.5 percent to $20.72 at the closing bell in New York, this despite news that the company would begin offering real money online gambling in the United Kingdom.
The social media giant, which went public in May, is now down 45 percent after peaking at $38 per share.
MGM 2nd Quarter Loss Double What Wall Street Expected
NEW YORK — (Associated Press) - MGM Resorts International on Tuesday posted a second-quarter loss double what Wall Street was expecting, but revenue surged 29 percent on gambling and hotel room gains.
Shares rose 12 cents to $9.38 as the market opened.
The Las Vegas company, which runs the MGM Grand, Bellagio, Mandalay Bay and other properties, lost $145.5 million, or 30 cents per share, compared with a year-ago profit of $3.44 billion, or $6.22 per share.
Amazon Enters Social Gaming Fray
Amazon.com is the latest company to enter the social gaming sector, though no word yet as to whether the online retailer will introduce poker.
For now, Amazon plans to kick off its social gaming with a product line called “Amazon Game Studios” while introducing a Facebook game titled “Living Classics”.
A company statement was released late Monday.
Atlantic City Resorts Casino Hotel to be Operated by Mohegan Sun
(Associated Press) - The owners of Resorts Casino Hotel, Atlantic City's first casino, are poised to hand over management to the Indian tribe that operates the Mohegan Sun casinos in Connecticut and Pennsylvania, according to a published report.
Time Warner Buys Bleacher Report
The popular sports content website Bleacher Report has been purchased by Time Warning Inc. for just under $200 million. The Federal Trade Commission approved this deal last week.
Time Warner’s Turner Broadcasting is looking to bolster its online sports exposure along with ad revenue.
Turner had managed ad sales for sister company Time Inc.’s Sports Illustrated but that deal ended last year.
MGM Resorts Expected to Report 2nd Quarter 2012 Loss
NEW YORK – (Associated Press) - MGM Resorts International is expected to report a quarterly loss on charges related to the dwindling value of some casinos when it releases second-quarter results before the market opens Wednesday.
WHAT TO WATCH FOR: How it's dealing with Americans falling desire to spend. The casino and resort operator, in which billionaire investor Kirk Kerkorian holds a major stake, has extensive operations in both Las Vegas, where it's based, and the Asian gambling mecca of Macau.
