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Asia round-up: Osaka IR agreement, China continues fight against cross-border gambling

China in pursuit

Asia News Roundup Japan

According to China’s Ministry of Public Security, the fight against cross-border gambling will continue.

The Ministry has suggested a plan exists to “completely destroy” networks of foreign “mega gambling groups.” The plan will include a centralised, nationwide effort against cross-border gambling. This promises to improve the previously announced blacklist on overseas tourism, destinations that are said to be luring Chinese citizens for gambling purposes.

A statement from the Ministry read: “It is necessary to thoroughly identify those who go abroad to be involved in gambling fraud, improve the entry and exit ‘blacklist’ of gambling-related personnel, dynamically adjust the ‘blacklist’ of tourist destinations, continue to strengthen the construction of border material defence technology and carry out in-depth efforts to crack down on obstructing national border management.

Osaka IR signs basic agreement

The Orix Corporation has announced that its Osaka IR has signed a Basic Agreement with Osaka Prefecture and Osaka City regarding the development of specific complex tourist facilities in Yumeshima.

Osaka IR, which was established by Orix and MGM Resorts, has simultaneously confirmed plans regarding the development of its complex facilities.

The project represents one of the ways Orix and MGM Resorts are contributing toward sustainable growth in both the Osaka and Kansai regions.

As per the deal between MGM Resorts and Orix, the latter will work with the public and private sectors to promote processes for realising the project successfully.

Crown Resorts half year results

Crown Resorts has released its results for the half-year ending 31 December 2021.

The report shows statutory revenue of AU$778.6m (US$559.4m), a 34% increase compared to the prior period. Reported EBITDA showed a loss of $47.5m, down from a profit of $4.4m in the previous comparable period.

Crown’s Managing Director and CEO, Steve McCann, suggested the performance reflects the numerous challenges the group has faced during the Covid pandemic.

He commented: “While we do not underestimate current headwinds facing Crown, there is growing confidence we have turned the corner. All three of our domestic resorts are back open, with a vaccination strategy to combat Covid providing a pathway forward for our staff, the business and the wider community."

The Star H1 FY22 results

The Star Entertainment Group has released its H1 FY2022 results, showing a normalised net loss of AU$74m (US$53.2m) and normalised EBITDA of $29m.

According to the report, the Star Sydney recorded strong revenue growth upon re-opening, with revenue up 29% year-on-year.

Queensland Casino’s revenue remained constant, despite border closures and strict Covid regulations.

The report also showed the group’s non-gaming revenue increased 10% year-on-year.

Chairman John O’Neill AO said: “The group continued executing its strategy well in the context of the extraordinary Covid related challenges. The fundamental earnings prospects for The Star’s domestic business remain attractive.

"They are underpinned by valuable long-term licences in compelling locations, while the transformation of our properties into globally competitive integrated resorts is nearing completion."

Sands China’s EBITDA is expected to reach $5bn by 2025, Bernstein says

A Bernstein report concludes that Sands China is expected to surpass its 2019 EBITDA in 2021.

The report states that Sands will exceed EBITDA of $3.3bn and adds the possibility of increasing up to $5bn by 2025.

Bernstein has subsequently raised its target price for Las Vegas Sands from $53 to $56.

Macau’s regulations for Taiwan and Hong Kong visitors

In other news, Macau has decided to relax quarantine regulations for Taiwanese visitors, while it has upped the requirements of visitors from Hong Kong.

According to the changes, Taiwan visitors need to spend 14 days in a medical observation facility instead of 21; and a seven-day health self-management period, during which they are required to get tested on the first, second, fourth and last day.

Arrivals from Hong Kong will also have to undergo the seven-day health self-management period after completing the 14-day quarantine, but they will also be required to take a Covid test at the border before entry. The test results may take up to six hours to obtain.

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