Each week, CasinoBeats breaks down the numbers behind some of the industry’s most interesting stories. Keep reading to discover how the Philippines could be set to debut two new casino resorts courtesy of a huge financial investment, a re-emphasised commitment by a US-based casino entertainment firm and why Brazil may see an influx of casino properties in the future.
Brazilian democrat, Paulo Azi, has submitted a bill which calls for the authorisation of 32 casinos across the country, according to Games Magazine Brazil.
The legislation, if passed, will allow a public bidding procedure to grant a 30 year licence to different states. Jurisdictions with a population of 15 million or less would be permitted to open one casino, while states with populations between 15 million and 25 million would have two.
São Paolo is set to be the only state that will be authorized to open three casinos due to its 45 million inhabitants. Minas Gerais, Rio de Janeiro and Bahia would qualify for two casinos while 23 other states could have one each.
The Philippines could set to be the recipient of huge investment, relating to the construction of a duo of casinos in the southeast Asian country.
This is courtesy of PH Resorts Group Holdings, previously known as Philippine H20 Ventures, and a subsidiary of Udenna Group owned by Chinese-Filipino businessman Dennis Uy, who has pledged to invest $1bn to build two casinos in the Philippines, with the first planned to be located on Mactan Island in Cebu and the other in Clark Freeport Zone.
The company will sell P18.48bn of shares next month and spend in the region of $665m to complete the build of The Emerald, an integrated resort and casino on a 13.5-hectare site in Punta Engaño, Mactan Island, Cebu.
Furthermore, the company also released further information regarding its Clark Freeport Zone proposition, where PH Resorts has set aside $276.6m for the construction of Clark Resort.
MGM Resorts International has re-emphasised its commitment to growth through its previously announced 2020 initiative, which the organisation hopes will deliver an adjusted EBITDA uplift of $300m across its domestic resorts.
Striving to to further reduce costs, improve efficiencies and position the company for growth, the Las Vegas headquartered firm has also emphasised a commitment to the latter point, with one of three integrated resorts licences in Japan very much on the radar.
Jim Murren, chairman and CEO of MGM Resorts International, addressed the company outlook moving forward: “Looking ahead, we remain highly focused on our strategic priorities, including maximising the performance of our premier properties, driving consolidated free cash flow growth and successfully executing MGM 2020 – our recently announced plan dedicated to improving efficiencies, reducing costs, and investing in key technologies to position the company for further profitability.
“Through MGM 2020, we are reinvesting in our business, and we expect to begin to see the financial benefits in the back half of 2019.
“We also remain committed to targeted growth opportunities, such as sports betting and the pursuit of an integrated resort in Japan. Importantly, we will continue to prudently allocate capital, with a focus of returning excess cash to shareholders.”
The European Casino Association has welcomed its 29th member, as the group also outlines an “ambitious three-year strategy” to develop leadership, exchange and development of best practices, across a variety of key issues affecting the land-based casino industry.
Gaining approval at the ECA’s recently held general assembly was the City of Dreams Mediterranean, Cyprus’ first integrated casino-resort, with the Melco Resorts and Entertainment owned property passing strict membership requirements whilst also signing up to the association’s code of conduct.
Scheduled for its grand opening in 2021, the €550m development is expected to become an integral contributor to the island’s tourism, with early forecasts approximating an added 300,000 tourists to Cyprus, whilst also creating in the region of 6,5000 jobs.