Okada Manila owner rescues Cebu casino project

A report by The Guardian this week highlights the alarming scale of harm caused by gambling in the UK, revealing that it may be eight times higher than previously estimated. The largest survey of its kind, conducted by the National Centre for Social Research and the University of Glasgow, found that an estimated 2.5 percent of British adults have struggled with problem gambling. This equates to approximately 1.3 million people, although the authors caution that this figure could be an overestimate.

The Gambling Survey for Great Britain (GSGB) used a sample of nearly 10,000 people to assess the impact of the gambling industry. Previous surveys, which relied on phone interviews, had estimated the prevalence of problem gambling at just 0.3 percent, a figure now believed to be a significant underestimate.

The latest research indicates that more than one in 40 people who gambled in the past year experienced severe harm, such as turning to crime to finance their gambling, experiencing relationship breakdowns, or losing their homes. The rates were even higher among men and young people. Among those aged 18-34 who gambled in the last 12 months, more than one in 20 reported severe impacts on their lives. Specifically, 1.9 percent of men experienced relationship breakdowns, 1.9 percent lost significant financial assets, and 1.6 percent experienced violence or abuse.

The survey also found that more than one in 10 respondents had considered suicide, with 4.9 percent attributing this to their gambling habits.

Charles Ritchie, from the charity Gambling with Lives, which supports families bereaved by gambling-related suicide reflected the gravity of the findings. He stated, “These figures show what many of us already knew, that the harms caused by gambling have been massively underestimated, with millions of people in the UK affected. The number of people that have considered or attempted to take their own lives confirms the appalling scale of suicides happening now.”

Ritchie, who founded the charity with his partner Liz after their son Jack took his own life due to gambling addiction, called for immediate legislative action. He urged the new government to implement a statutory levy on gambling industry profits to fund prevention and treatment efforts and to restrict gambling advertising.

The data for the survey was collected by inviting households to participate online, a method believed to reduce the stigma associated with gambling and encourage more honest responses. The survey will be conducted annually to track trends over time.

The findings have been independently reviewed and endorsed by a professor from the London School of Economics, who described the survey as “exemplary in all respects.”

The Guardian report also highlighted that slot machines and online slots are particularly associated with problem gambling. Problem gambling scores were calculated based on responses to nine questions, such as whether individuals bet more than they could afford to lose and whether gambling caused them health or financial problems. A score of eight or more indicates problem gambling, and the proportion of participants with such scores was more than nine times higher for those who had engaged in betting on non-sports events.

Bally’s Corporation has officially entered into a definitive merger agreement with Standard General L.P., marking a significant milestone in the company’s history. This merger, valued at approximately $4.6 billion, is set to reshape the landscape of the gaming and entertainment industry.

The journey to this agreement has been a long one, with Standard General making several acquisition attempts over the years. The initial bid in 2022 was at $38 per share, followed by a lower offer of $15 per share earlier this year. This lower bid faced criticism from Bally’s investor K&F Growth Capital, which accused Soo Kim and Standard General of attempting to acquire Bally’s at a fraction of its fair value, leveraging Bally’s already stretched balance sheet.

The final agreed-upon offer stands at $18.25 per share, representing a 71 percent premium on the volume-weighted average price per share as of 8 March, 2024, the last trading day before the initial cash acquisition proposal of $15.00 per share. This premium underscores the value and potential that Standard General sees in Bally’s.

As part of the merger, Bally’s will combine with The Queen Casino & Entertainment (QC&E), a regional casino operator majority-owned by Standard General. This strategic move will add four complementary properties to Bally’s existing portfolio of 15 domestic casino properties, enhancing geographic and market diversity.

Robeson Reeves, CEO of Bally’s, (pictured above), expressed optimism about the merger, stating, “The addition of four complementary properties through this merger to our existing 15 domestic casino properties will add further geographic and market diversity to our portfolio. With QC&E’s development pipeline recently completed or already well underway, we see a path toward additional revenue and EBITDAR growth and value accretion as those projects are completed in 2025. We look forward to bringing our ultimate vision to bear and to working closely with the Standard General team to execute on that vision.”

The transaction values Bally’s at approximately $4.6 billion in enterprise value. Under the Securities Act of 1934, the combined company will remain a publicly traded registrant, allowing Bally’s stockholders to retain their stock in a rollover election to the combined company.

Soo Kim, Managing Partner of Standard General, highlighted the benefits of the merger for Bally’s stockholders, stating, “The transaction provides Bally’s stockholders with a significant cash premium along with certainty of value for their investment or, if they elect to retain their shares, the opportunity to participate in the longer-term growth prospects of our expanded portfolio and significant development pipeline. The addition of the complementary QC&E assets builds upon the Company’s attractive growth profile. We look forward to working with the Board of Directors and the Company’s senior management team as they continue to execute on their business plan.”

This merger comes on the heels of Bally’s securing $2.07 billion in funding for its Chicago Casino and Hotel Tower, further solidifying its position in the market and paving the way for future growth and expansion.

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China’s Supreme People’s Court (SPC) has intensified its crackdown on cross-border gambling, citing the case of Alvin Chau (pictured above) and his Suncity Group as a prime example of the industry’s harmful impact. The court has emphasised that such operations result in massive capital outflows and pose significant threats to social stability.

SPC highlighted the escalating problem of offshore casinos and online gambling platforms targeting Chinese citizens. These operations have facilitated the transfer of billions of yuan out of the country, fuelling concerns about economic security.

The Suncity Group, once a dominant force in Macau’s gaming industry, was identified as a key player in this illicit network. The group operated VIP rooms in multiple Macau casinos and established online gambling platforms in the Philippines and other jurisdictions. With a vast network of agents and customers, Suncity was instrumental in funnelling billions of yuan out of China.

Alvin Chau, the group’s founder, was arrested in 2021 and subsequently sentenced to 18 years in prison for illegal gambling and organised crime. The court ordered him to pay MOP$25 billion (US$3.2 billion) in compensation.

To combat this growing threat, the Chinese courts have handed down severe penalties to gambling organisers, ringleaders, and repeat offenders. Recent cases include a life imprisonment sentence for a mafia-style gang leader involved in cross-border gambling and human trafficking, as well as a seven-year prison term for the head of a gambling ring that amassed billions of yuan in illicit profits.

The SPC has stressed the importance of disrupting the financial networks used by these criminal organisations. By targeting these groups’ leaders and key members, authorities aim to dismantle their operations and deter others from engaging in similar activities.

As China continues to tighten its financial security and maintain social order, the crackdown on cross-border gambling is expected to remain a top priority for law enforcement and the judiciary.

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Ontario’s online gambling industry is experiencing unprecedented growth, according to the latest report from iGaming Ontario. The province’s total gambling handle surged to $18.4 billion (approximately €17 billion) in the second quarter of 2024, marking a 31 percent increase compared to the same period last year. This explosive growth has translated into substantial revenue for operators, with total gaming revenue reaching $726 million (approximately €669.6 million), a 34 percent jump year-over-year.

Casino games, including slots, table games, and bingo, continue to be the driving force behind Ontario’s iGaming success. Players wagered a massive $15.5 billion (approximately €14.3 billion) on these games, accounting for 84 percent of total wagers. This category alone generated $529 million (approximately €487.9 million) in revenue for operators.

The Edmonton Oilers’ presence in the Stanley Cup Finals increased betting activity throughout the quarter. Sports betting had a significant impact on the province’s overall performance. With a total handle of $2.5 billion (approximately €2.3 billion), sports betting produced $181 million (approximately €166.9 million) in revenue.

While poker experienced a modest increase in handle compared to the previous year, it saw a decline from the previous quarter. The $402 million (approximately €370.8 million) wagered on peer-to-peer poker translated into $16 million (approximately €14.8 million) in revenue. This slight dip could be attributed to the overlap with the World Series of Poker in Las Vegas, which often draws professional poker players away from online competition.

The thriving iGaming market has a substantial economic impact on Ontario. A joint report by Deloitte Insights and iGaming Ontario revealed that the industry generated over $4 billion (approximately €3.7 billion) in economic value for the province in its first two years of operation. This includes $2.7 billion (approximately €2.5 billion) in GDP, $1.2 billion (approximately €1.1 billion) in government revenue, and the creation of nearly 15,000 jobs.

Martha Otton, Executive Director of iGaming Ontario, emphasised the positive contributions of the regulated iGaming market to the province, stating, “I look forward to building on this foundation of success with operators and other partners as they invest in Ontario so that Ontarians can continue to play with confidence.”

As the Ontario iGaming market matures, industry experts anticipate sustained growth and increased competition, benefiting the province’s economy and consumers.

Pictured above is Heidi Reinhart, Chair of iGaming Ontario.

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