Jessica Mellor, the youngest and first female CEO of The Star Gold Coast, has tendered her resignation to the company’s board, effective from 24 May 2024. Mellor’s tenure, albeit brief, was marked by significant strides in the development of the property as a leading tourism and entertainment destination. She oversaw the implementation of a $2 billion master plan as part of a joint venture consortium, transforming The Star Gold Coast into an iconic world-class integrated destination resort.

Mellor’s leadership was instrumental in navigating the company through challenging times, including the COVID-19 pandemic. David Foster, Executive Chair of The Star, expressed his gratitude for Mellor’s tireless efforts, stating, “Jessica has led The Star Gold Coast through some challenging times, including through COVID and has been instrumental in developing the Gold Coast property into an iconic world-class integrated destination resort with our joint venture partners.”

Following Mellor’s departure, Ian Brown, General Manager Gaming at The Star Gold Coast, is set to assume additional responsibilities as acting CEO, pending regulatory approval. Mellor has agreed to provide support to The Star until September 2024 to ensure a smooth transition and continuity of key projects.

However, The Star Entertainment Group is currently facing allegations of misconduct and regulatory breaches. These allegations emerged during an ongoing inquiry into the company’s culture by the NSW Independent Casino Commission. Nicholas Weeks, the special manager appointed by the commission, testified about concerning incidents within the operator, including claims of falsified welfare checks on poker machine players and compliance record discrepancies.

These allegations have raised concerns about the company’s compliance with regulatory standards and internal controls. Furthermore, The Star Entertainment Group underwent leadership changes as CEO Robbie Cooke and CFO Christina Katsibouba resigned amid ongoing regulatory scrutiny and market apprehensions. Cooke’s departure was prompted by concerns regarding his suitability for the role amid the inquiry in New South Wales.

As the Star Entertainment Group commences the search for a new CEO at the property, it will be interesting to see how the company rises to these challenges and continues its journey towards becoming a premier entertainment destination.

Michigan’s iGaming and mobile sports betting industry has been on a meteoric rise, setting new records in revenue generation. In March 2024, the industry witnessed a significant leap, with gross revenue jumping 17.7 percent from February. This surge marked the second consecutive month of record iGaming revenue for the state.

The Michigan Gaming Control Board reported that iGaming and mobile sports betting in the state generated a staggering $257.1 million in gross revenue in March. This figure not only represented a 17.7 percent increase from February’s revenue but also set the highest revenue record for 2024.

In the same month, Michigan, also known as the Great Lakes State, surpassed its previous iGaming revenue record of $188 million set in February, posting an impressive revenue of $215.2 million. This achievement underscores the growing popularity and success of iGaming in the state.

In addition to the iGaming sector, the gross sports betting receipts for March also saw a significant increase. The receipts climbed from $30.5 million in February to $41.9 million. The total mobile sports betting handle also rose by 19.3 percent from February, reaching $480.4 million. According to the Michigan Gaming Control Board, the combined total adjusted gross receipts for iGaming and mobile sports betting in March were $221.1 million. Of this total, iGaming generated $194.5 million, while sports betting contributed $26.7 million.

The success of Michigan’s iGaming and mobile sports betting industry is not only beneficial for the operators but also for the state. In March, operators submitted $41.1 million in taxes and payments to the state of Michigan. The record-breaking performance of Michigan’s iGaming and mobile sports betting industry in March 2024 is a testament to the state’s thriving digital gaming landscape. It reflects the industry’s potential for growth and the increasing acceptance of digital gaming among Michigan’s residents. As the industry continues to evolve and innovate, it is poised to set new records and contribute significantly to the state’s economy.

The Rank Group has reported a 6 percent year-on-year increase in its total net gaming revenue (NGR), reaching £182.3 million in the third quarter of its 2023/24 financial year. This growth has been attributed to the performance of various business segments within the company.

The Grosvenor casino venues, the largest contributing segment, generated £80 million of the total revenue, marking a 3 percent year-on-year improvement1. This growth was facilitated by a 5 percent increase in visitor numbers and a 2 percent rise in average weekly NGR. The digital segment of , delivering an additional £55 million, up 6 percent on a like-for-like basis.

Meanwhile, the Mecca bingo venues outpaced other segments, with revenue improving 12 percent year-on-year to £37.3 million. This was driven by a 5 percent increase in customer visits and a 7 percent increase in the average spend per visit. In Spain, the operator’s Enracha venues contributed a further £10 million in NGR, reflecting a year-on-year growth of 9 percent. These figures culminated in the group’s total NGR for the first nine months of its 2023/24 financial year reaching £544.9 million, up 8 percent. John O’Reilly, the CEO of Rank Group, expressed satisfaction with the company’s progress across both venue and online businesses. He highlighted that the Q3 trading was very much in line with the board’s expectations. O’Reilly also mentioned the upcoming land-based reforms from the government’s white paper, which the company looks forward to implementing in the coming months. In other developments, the Rank Group has entered into an agreement to sell its holding in Passion Gaming, an Indian online rummy business. The sale, which is for a nominal consideration, is expected to complete in the coming weeks.

Following the publication of these results, investment bank Peel Hunt reiterated its Buy rating for stock and set a target price of £112. It’s worth noting that after peaking at more than £3 in February 2020, shares in Rank Group have been on a downward trajectory, dipping as low as 56p in October 2022. Over the past month, shares have been traded between 66p and 73p,

As of the latest update, The Rank Group Plc (RNK.L) is trading at GBp71.00

has revised its rating for the Galaxy Entertainment Group (GEG) from ‘Overweight’ to ‘Even-weight’. This unexpected shift was primarily due to the unfulfilled anticipation of an increase in mass market share following the grand inauguration of Galaxy Macau Phase 3.

Analysts Praveen Choudhary and Gareth Leung highlighted that their projections for GEG’s expected EBITDA for 2024 and 2025 are now 13 percent lower than the market consensus. The consensus had previously predicted a surge in mass market share as a direct consequence of the Phase 3 launch, however, these expectations did not come to fruition.

The market consensus had also forecasted Galaxy’s 2024 mass market share to be at 20 percent, which is 170bps higher than the 18.5 percent it managed to achieve in the latter half of 2023. Contrary to these projections, Morgan Stanley anticipates that GEG’s mass market share in the first quarter of 2024 will further decrease to 17.7 percent. This downward trend is attributed to the potential operating deleverage as the company escalates operating expenses in an attempt to capture market share and for non-gaming investment. Despite this setback in market share, compared to its Macau counterparts. It trades at a premium of 12 percent over Sands China and 20 percent over the rest. This premium is presumably due to GEG’s net cash position and the market’s optimism about growth from Phase 3 and the forthcoming Phase 4 development.

While Morgan Stanley predicts that GEG’s EBITDA growth will lag behind its peers in the first quarter of 2024, they also indicated that their outlook might turn more positive if they observe a more noticeable trend of market share gains from the second half of 2024 onwards.

Galaxy has a commendable track record in managing and escalating operations. Some investors are drawn to its net cash position amidst an uncertain China macro. However, considering these recent developments, Morgan Stanley has reduced its Target Price on GEG shares by 17 percent to HK$381.

The downgrade by Morgan Stanley has the potential to shake the very confidence of investors in GEG. The perception of underlying issues within the company could lead to a possible sell-off of shares, as investors might view this as a sign of increased risk.

This downgrade often leads to a decline in the company’s stock price. The perceived increased risk could prompt investors to sell their shares, driving down the share price. This, in turn, could result in increased scrutiny from investors and market analysts. The pressure to improve performance could mount on GEG, forcing it to take corrective measures.

The reputation of GEG might take a hit due to the downgrade. It could affect the company’s standing among its peers and could influence future business dealings. If GEG plans to raise capital in the future, this downgrade could impact those plans. Lenders and investors might view GEG as a higher risk, potentially leading to higher borrowing costs or difficulty in attracting investment.

The downgrade might also force GEG to reassess its operational strategies. This is particularly true for its efforts to increase its mass market share and non-gaming investments. This could lead to changes in the company’s operations and business strategy. Despite these challenges, GEG’s response to this situation will be crucial in determining its future trajectory.