Old boys gambling dens see SG IRs no UP
Punters betted against Singapore IRs which seems doomed to failure right from the start even old boys in Macau see Singapore IRs no up as Casino Operators.
Wynn Resorts sees no threat from Singapore casinos
By Channel NewsAsia's Hong Kong Bureau Chief Roland Lim | Posted: 23 September 2009 2345 hrs
HONG KONG: Wynn Resorts says it does not expect new casinos set to open in Singapore to be a threat to its Asia business.
Wynn is seeking to raise up to US$1.6 billion from a spin-off of its Macau unit, set to be Hong Kong's second biggest listing this year.
Wynn Resorts is the world's third biggest casino operator, with casinos in Las Vegas and Macau.
But back in 2005, it dropped out of the race to develop an integrated resort in Singapore.
Instead, it is putting its money on Macau and Chinese gamblers, making Macau the world's biggest casino market today.
Wynn says Singapore won't be a threat, even with the Lion City enticing high-rollers with lower taxes.
Mr Steve Wynn, Chairman of Wynn Macau, said: "People from all over will go to Singapore to check it out. If they have a good time, they will go there more than once. But as for the day-in, day-out, month-in, month-out business, proximity is the most powerful factor."
Wynn is seeking to raise US$1.6 billion by spinning off 25 percent of its Macau assets.
On offer is 1.25 billion shares at between HK$8.52 and HK$10.08.
The international tranche has already been five times subscribed, counting investors like Hong Kong property tycoon Walter Kwok and Malaysia-based Quek Leng Chan of Hong Leong.
Mr Wynn added: "We didn't need the money, but we needed the IPO. So why? From the very beginning when we were fortunate to be selected, as the first of new concessions and the only American at the time, it was very clear our goal was not to be an American company in China but to be a Chinese company with American participation and management."
The return of Chinese tourists and gamblers, and an improving economy will bode well for the IPO. In terms of gross gaming revenue, Macau now contributes more than double what the Las Vegas strip brings in.
China has just lifted visa restrictions for Guangdong residents visiting Macau to once a month, compared to once every three months.
It is estimated that half of Macau's visitors are Chinese day-trippers, mostly from the neighbouring Guangdong.
Mr Wynn said: "The government recognised that things go too fast sometimes.... And I think that's what part of the slowdown and the visa programme was. The economy had gotten overheated. People working for me had trouble making rental payments even though they had paying jobs better than they had been paid before."
Wynn is on track to completing a second resort in Macau next year, called 'Encore', costing some US$650 million and funded through its existing cash balances.
It is also considering launching a bigger resort at the Cotai Strip in the near future. - CNA/de
Punters betted against Singapore IRs which seems doomed to failure right from the start even old boys in Macau see Singapore IRs no up as Casino Operators.
Wynn Resorts sees no threat from Singapore casinos
By Channel NewsAsia's Hong Kong Bureau Chief Roland Lim | Posted: 23 September 2009 2345 hrs
HONG KONG: Wynn Resorts says it does not expect new casinos set to open in Singapore to be a threat to its Asia business.
Wynn is seeking to raise up to US$1.6 billion from a spin-off of its Macau unit, set to be Hong Kong's second biggest listing this year.
Wynn Resorts is the world's third biggest casino operator, with casinos in Las Vegas and Macau.
But back in 2005, it dropped out of the race to develop an integrated resort in Singapore.
Instead, it is putting its money on Macau and Chinese gamblers, making Macau the world's biggest casino market today.
Wynn says Singapore won't be a threat, even with the Lion City enticing high-rollers with lower taxes.
Mr Steve Wynn, Chairman of Wynn Macau, said: "People from all over will go to Singapore to check it out. If they have a good time, they will go there more than once. But as for the day-in, day-out, month-in, month-out business, proximity is the most powerful factor."
Wynn is seeking to raise US$1.6 billion by spinning off 25 percent of its Macau assets.
On offer is 1.25 billion shares at between HK$8.52 and HK$10.08.
The international tranche has already been five times subscribed, counting investors like Hong Kong property tycoon Walter Kwok and Malaysia-based Quek Leng Chan of Hong Leong.
Mr Wynn added: "We didn't need the money, but we needed the IPO. So why? From the very beginning when we were fortunate to be selected, as the first of new concessions and the only American at the time, it was very clear our goal was not to be an American company in China but to be a Chinese company with American participation and management."
The return of Chinese tourists and gamblers, and an improving economy will bode well for the IPO. In terms of gross gaming revenue, Macau now contributes more than double what the Las Vegas strip brings in.
China has just lifted visa restrictions for Guangdong residents visiting Macau to once a month, compared to once every three months.
It is estimated that half of Macau's visitors are Chinese day-trippers, mostly from the neighbouring Guangdong.
Mr Wynn said: "The government recognised that things go too fast sometimes.... And I think that's what part of the slowdown and the visa programme was. The economy had gotten overheated. People working for me had trouble making rental payments even though they had paying jobs better than they had been paid before."
Wynn is on track to completing a second resort in Macau next year, called 'Encore', costing some US$650 million and funded through its existing cash balances.
It is also considering launching a bigger resort at the Cotai Strip in the near future. - CNA/de