Spelinspektionen assessed for regulatory effectiveness

Hong Kong-based Legend Development Ltd, a prominent player in the casino industry, recently announced the successful sale of its casino resort in Laos, Savan Legend Resorts. This strategic move, which took place on 16 May, 2024, marks the end of Macau Legend’s interest in the resort.

The sale process of Savan Legend Resorts, located in Savannakhet, Laos, had been delayed several times since its announcement in February. However, the deal finally received the green light from the Laotian government, allowing the transaction to proceed.

The initial announcement of the sale was made in June 2023, where a letter of intent was mentioned with a potential buyer for a total consideration of US$45.0 million. The buyer, Shundo Yoshinari, a Japanese citizen residing in Japan, was identified as an independent third party.

In a subsequent filing in December, Macau Legend revealed that the entire equity interest in Savan Legend was to be sold for an “initial consideration” of US$39 million, as agreed with Mr. Yoshinari. The company anticipated a pre-tax gain on the disposal of approximately HKD47 million (US$6.0 million).

This sale is part of a broader strategic shift for Macau Legend, as it may soon divest its other business assets outside of Macau. Recent reports suggest that the government of Cape Verde, an island nation in West Africa, is in discussions with the company to revert its concession to develop and operate a casino resort in the country.

Despite these international divestments, Macau Legend continues to maintain a strong presence in Macau with its tourism complex, Macau Fisherman’s Wharf. This waterfront area near the Outer Harbour Ferry Terminal on the Macau peninsula features a casino, Legend Palace, which is promoted under a services agreement with Macau licensee SJM Holdings Ltd.

However, the company’s financial performance in 2023 reflected a net loss of HKD4.9 million, as reported in its annual results filed on 28 March . The sale of Savan Legend Resorts is seen as a strategic move to improve the company’s financial health and focus on its core operations.

The Nevada Gaming Commission (NGC) has approved changes that are poised to significantly impact the Nevada gaming industry. These changes aim to streamline and modernize the regulatory process, enhancing regulatory efficiency. For example, the NGC has empowered the Chair of the to grant administrative approval to the spouse, next of kin, personal representative, guardian, or heir of a licensee. This is expected to save estates both time and money, leaving more resources available to creditors and heirs. In addition, the NGC has introduced new cybersecurity regulations.

These require gaming operators to secure their information systems against cyberattacks. Operators are required to perform an initial risk assessment of their systems by the end of 2023 and take any necessary and ongoing steps to prevent attacks. In the event of a successful breach compromising player or employee data, credit card information, and/or other records, properties will be required to report it to gaming regulators within 72 hours. The definition of a “gaming employee” has also been revised to include more general categories. This allows for more flexibility as titles and job duties evolve, providing more clarity and adaptability in the rapidly evolving gaming industry. Furthermore, amendments to NGC Regulation 8 have consolidated the transfer of interest process. This allows for administrative approval of certain transfers and recognizes digital certificates for transactions, simplifying and expediting the transfer of interest process.

These changes are part of the government’s broader efforts to ensure that the regulation of land-based gambling is fit for the modern age and is proportionate to the risk associated with the gambling products on offer. However, while these changes aim to revitalize the sector, they also underscore the importance of having safeguards in place to protect consumers. (NGC) convened on May 16, 2024, at their Las Vegas office, with Chair Hon. Jennifer Togliatti (photo above), and members Rosa Solis-Rainey, Hon. Brian Krolicki, George M. Markantonis, and Justice Abbi Silver in attendance. The meeting’s disposition is pending approval, subject to potential revisions at the next NGC meeting. Meeting Highlights: Public Comments: The session began with public comments, including discussions on Regulation 5 changes and input from the Culinary and Bartenders Unions regarding Station Casinos. Approval of Previous Disposition: The Commission approved the disposition from April 2024. Nonrestricted Items: A series of nonrestricted agenda items were reviewed, with actions taken as outlined in the meeting materials. Restricted Items: Similarly, restricted agenda items were considered, with corresponding actions taken. Employee Registration Appeal: An appeal by Alicia Conrad (Case No. 2010-7643L) was addressed, resulting in a sustained objection.

The NGC adopted several regulations, including amendments to NGC Regulation 10.041, hosting centre provisions, and gross revenue computations for slot machines. Transfer of Interest Process: Amendments to NGC Regulation 8 consolidated the transfer of interest process, allowing for administrative approval of certain transfers and recognizing digital certificates for transactions. The meeting also included administrative reports and updates from Board Chair Hendrick, who welcomed Commissioner Silver and provided a workshop update. The NGC continues to adapt and refine its regulatory framework to ensure the integrity and growth of Nevada’s gaming industry.

The Star Entertainment Group, Australia’s second-largest casino operator, has been the subject of recent takeover speculation. Despite rumours of a bid from US-based Hard Rock, has been received from them. However, the company has acknowledged interest from several other parties, including a consortium of investors that counts Hard Rock Hotels & Resorts (Pacific) among its members.

In a statement released on Monday, The Star confirmed that while there has been inbound interest regarding potential transactions, none of these approaches have led to any substantial discussions. The company described the interest as confidential, unsolicited, preliminary, and non-binding.

Currently, The Star is navigating through remediation activities in both New South Wales and Queensland. This includes its involvement in the Bell Two Inquiry, which is assessing its suitability to retain a Sydney casino license. Amidst this, the company announced on 17 May that its gaming licenses for The Star Gold Coast and Treasury Brisbane casinos have been extended from 31 May 31st to December 20th. This extension allows the Queensland Government to evaluate the outcomes of the Second Bell Inquiry into The Star in New South Wales and assess The Star’s remediation progress before making further decisions.

This extension surpasses the term of the Special Manager, appointed to supervise the Queensland properties, which concludes on 8 December. The final report for the Bell Two Inquiry is anticipated on 31 July.

There has been widespread speculation about to retain its licences in both states, particularly in New South Wales due to the Second Bell Inquiry. This has led to questions about whether rival Crown Resorts would be interested in a possible takeover of the group’s gaming license, if permitted by authorities.

In a previous conversation with AGB, Crown Resorts CEO Ciarán Carruthers did not confirm whether Crown now holds a competitive edge over The Star in New South Wales, as suggested by some analysts. Carruthers highlighted that the group’s successful remediation efforts, demonstrated by its suitability to maintain its casino license in both Melbourne and Sydney, have helped rebuild trust within the local community and have strengthened its authority in community engagement.

The possibility of a takeover of The Star has caused the company’s shares to surge by approximately 20 percent in today’s trading.

Sands Macao, the first post-liberalization casino in Macau, celebrated its 20th anniversary with a grand ceremony last week. Since its opening on May 18, 2004, Sands Macao has been a cornerstone of the region's casino industry, setting the stage for Sands China's extensive growth and development. 

According to the group’s press release, 's portfolio, which includes five properties—Sands Macao on the Macau peninsula, and The Venetian, The Plaza, The Londoner, and The Parisian Macao integrated resorts in Cotai—has collectively welcomed over 950 million visitors since the opening of Sands Macao. 

Wilfred Wong, executive vice chairman of Sands China Ltd., reflected on the significant impact of Sands Macao’s opening. "The grand inauguration of Sands Macao in 2004 served as the pivotal moment in Macao’s illustrious era of tourism. Drawing inspiration from the triumphant integrated resort model of Las Vegas, we subsequently embarked on a transformative journey that reshaped the Cotai skyline," he stated. 

Sands China's properties feature over 12,000 hotel rooms and suites, 150 dining options, extensive meetings and conventions destinations, more than 720 duty-free shops, convention and exhibition venues, two arenas, and four theatres. This diverse range of amenities has solidified Sands China’s role as a major player in the hospitality and entertainment sectors.  

The 20th-anniversary celebration included performances by local singer German Ku and London’s West End artist Kayleigh Stephenson. Attendees enjoyed song and dance sequences, a pyrotechnic display, and a gala dinner featuring Moulin Rouge-inspired performances and British vocal harmony group The Overtones. 

's 20-year journey underscored its significant contributions to Macau’s tourism and entertainment landscape, with its properties continuing to attract millions of visitors and setting new standards in luxury and hospitality.