Trouble in paradise; Hard Rock comeback

As faithful S&G readers know, we’re coming up on the re-tender of the six casino concessions in Macao. One of the enclave’s most prominent junket operators, Suncity, had hoped to oust an existing concessionaire and take over its casinos. (A seventh concessionaire might also be added.) However, the government of China hates online gambling almost as much as Sheldon Adelson does, and allegations that Suncity has been active in the promotion of Internet play could queer the pitch for a casino bid. It is also accused of facilitating proxy betting, which is a big no-no in Macao, a charge Suncity denies. The government is taking this very seriously. Lead regulator Paulo Martins Chan called all six concessionaires on the carpet to remind them that ‘Net bets within Macao are nixed. He conveyed a similar message to Macanese junket operators, telling them their licenses would be imperiled by online gambling.

“Online gaming and promotion of gaming are criminal offences in mainland China, and the government is aware of its negative impact on the economy there and is concerned of how it could result in capital outflow,” said Macao Polytechnic Institute’s Wang Changbin. For good measure, he reminded reporters of the fate of the Crown 18, imprisoned for overly aggressive player recruitment on the Chinese mainland. “The fact that it’s been published as an exposé without any explicit [reprisal] by the authorities would seem to suggest that it is a warning to all those who may have been involved or presumed to have been involved in either online or proxy gaming in the region,” said Ben Lee, managing partner of IGamiX Management & Consulting. He said the silver lining might be that the disciplining of rogue operators might chill the flight of players to the Philippines and Cambodia. That’s a bit optimistic but we shall see.

* While the Hard Rock flag was hauled down in Ohio, it will be going up once, maybe twice in Indiana. It’s a certainty in Gary, where Spectacle Entertainment‘s new casino will managed and branded under Hard Rock (a better turn of events could hardly be imagined). And if Spectacle wins the casino it seeks in Terre Haute, that will be a Hard Rock operation as well. The conversion is not without costs. The Gary budget will go up to $400 million to accommodate a Hard Rock Café and concert hall called Hard Rock Live. Spectacle attorney John Keeler says the new alliance strengthens the company’s Terre Haute bid and he’s absolutely right.

* Striking a blow for diversity in the executive suite, manufacturing giant Aruze has named Martha Schuessler vice president of corporate finance. A former Harrah’s Entertainment veteran, Schuessler joined Aruze in 2010 and has risen in the ranks from corporate controller upward. “She is an invaluable asset to the global team and an integral member of our senior leadership team,” said Aruze Gaming President Rob Ziems. “Martha has made countless contributions to Aruze’s success and we look forward to see where she leads our global finance operations as we continue to expand globally and grow our footprint in the industry.” Hear, hear.

* New Jersey got a new competitor for sports betting this week when Assemblyman Gary Pretlow laid down the first legal wager, a $20 bet on the Seattle Mariners, at Rivers Casino in Schenectady, which was scrambling up until the last moment to get ready. “Right now, Jersey is cleaning our clock when it comes to sports betting,” said Pretlow. Tomorrow Tioga Downs starts taking wagers and several upstate casinos will follow suit. The Empire State’s ability ability to catch the Garden State will be somewhat hobbled by the Lege’s inability to approve mobile wagering, something solons will probably want to fix next session.

* Make book without regulation in Kenya and they’ll deport your ass. This is one of the most severe anti-gambling crackdowns we’ve encountered.

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