10/14/14

Wynn Resort is Getting Higher Gains than Estimated

The founder and CEO of the Wynn Resort is one happy man. The reason is the better than expected Q3 results posted by the company.

 The Vegas gains

Wynn_ResortsThe Q3 profits are higher for the company Wynn Resorts Ltd as the Vegas revenues for the company surged. The rise, which is estimated at 9 percent at their two casinos in Las Vegas, helped the company even when the company profits saw a drop in their Macau profits. Interestingly, it is the Macau casino that accounts for the majority of the casino business from the company. The Macau casinos for Wynn have been registering losses since last few months and this has affected the Q3 earnings for the company if overall performance is taken into account. Nevertheless, the Las Vegas casinos of the company have come to the rescue this time around and helped Wynn with more than expected Q3 performance.

The reasons for loss

The lucrative Macau casino business has suffered due to the Chinese government taking strict measures against corrupt practices. This has affected the casino business even though Macau is the only place in China where gambling business is legal. To make matters worse for the casino business, a new ban on smoking that is recently put into place could further affect the business in Macau. The high-rollers are not very enthusiastic with these new developments in China ad are leaving to play in casinos where there are no restrictions or problems.

However, with everything happening in China, the company is still going ahead with its new resort in Macau that is being constructed and the plans are to open its gate in 2016. This has been not put under hold as the company management believes that the current situation in China that is affecting the casino business is temporary and is bound to improve in the coming months. With the Wynn Palace in business, which is the name of the new upcoming resort and its ongoing Macau and Las Vegas business, the Wynn Resort management is confident of registering better profits in the coming months and years.

10/9/14

Private Jets and Golf to Attract Chinese High Rollers

The habit of high roller gamblers from China to take risks and emerge victorious or lose millions in one trip has earned the awe of casino operators across the world. This phenomenon is most obvious in Australia’s single profitable casino Echo Entertainment which depends on its Asian players for providing one third of its overall sales and treats them like celebrities.

These elite gamblers were responsible for enhancing earnings of Macau’s casinos by nearly four times, forcing large casino operators like Crown Resorts to develop an effective marketing strategy to bring them into Australia. This junket operation of sponsoring gamblers from Macau to Sydney interested in taking high risks has helped the casino increase its profits by nearly 25 percent.

Elite gamblers

Pampering high rollers with VIP treatment

 The casinos of Australia promise and offer these high stake players VIP’s Rich Lifestyle and gambling thrill in an exclusive setting within VIP lounges. This has made it attractive for players from China who have helped the revenue of Echo Entertainment grow by three times to AUD 397 million within few months. In Sydney the earnings of Echo owned Star casino itself was at AUD 389 million from VIP customers signifying a growth of 30 percent in gross revenue. Crown Casino also reported a 53 percent increase in revenue from its elite gamblers representing the highest rate of growth within a year.

To pamper its VIP customers, Crown Resorts and Casino got Bombardier Jets to transfer them from Macau to Australia and back instead of its usual Gulfstream jets which led to expenditure of nearly AUD 100 million.

Exclusive casinos for high rollers

Crown Resorts is also building a casino close to the Echo Entertainment casino to attract customers from Macau and Singapore. These famous and rich players find Australia an attractive option as they already have family and business connections in the country and this is like a free trip for them with family where they can relax in the glamour of famous and rich celebrities. Australia has a large Chinese immigrant population which settled down several years ago and own large tracts of real estate property.

Echo is working with Hong Kong based firm Chow Tai Fook Enterprises to build a new casino resort in Sydney, which will be uniquely designed on the beach side. To increase the attraction quotient of the casino resort Echo is planning to buy a golf course in the region.

09/1/14

Estimates Costs of Cairns’ Latest Casino

Casino resort Aquis which is proposed for construction in Cairns is an ambitious project of Queensland government. It is keen on bringing in wealthy new gamblers into the area to help revive local economy. Though the project is touted to be “largest man made wonder on earth” with development costs likely to be in the range of billions of dollars it is being set up to attract top international gamblers from HongKong and Macau who do not mind winning or losing million within few days. This thought does not surprise local residents of Cairn as they have seen the progress which high dealers in gambling casinos have bought to coastal areas of Australia.

Cairns Casino

Why early Australian casinos were unsuccessful?

Though the developers are presenting this project as a means to attract both tourists and gamblers as an attractive destination to play casino games and also enjoy hospitality of the resort. But local authorities and general public are skeptical of this idea as in the past these ambitious ideas have not borne fruit. Australian casinos which were introduced in the past have lost popularity in the international circuit as they concentrated on pleasing locals.

Canberra Casino is the only one in Australia which has a casino history to speak of and has managed to stay profitable as it has banned all local pokers slot machine players. Even Australia’s famous casino Crown Casino has revealed that half of its earnings amounting to AUD 376 million came from slot machines while AUD 330 came from large players.

Why Aquis has a better chance at profitability?

The promoters of Aquis are confident that this venture will break previous opinions and myths to emerge as a welcoming gambling zone which will attract high rollers from Asia and other parts of the globe. The project document states that this resort will have several types of casino games comprising 1500 poker slot machines and 750 gaming tables for card games. Australian casino operators in Macau have noticed that Chinese gamblers have a noticeable lack of interest in slot machines and prefer card games with high stakes.

The only problem sociologists see from this project is that locals with gambling problems may be underwriting the casino with expenditure at poker slot machines to the tune of around $33.5 million every year.