Jason Ader - “The Philippines is the fastest-growing market in Asia”
What impact do you think the recent takeover of Okada Manila by Kazuo Okada could have on the Philippines’ gaming industry and your proposed merger?
Firstly, our proposed merger would create the largest US-listed Philippine company in the world. So US capital markets are watching this transaction and what will eventually happen at Okada Manila, very closely. When I told Government officials and gaming regulators that the whole US capital market, whether that’s Nasdaq or the New York stock exchange, is looking at our deal to create the largest Philippine company in the US, they didn’t believe it.
What’s more, US investors want to invest in travel and tourism in Asia, particularly after the pandemic, especially at the price we’re proposing which is well below production costs. So there’s an ardent desire to rectify the situation at Okada Manila because Universal Entertainment very much wants the Philippines to be an attractive location for foreign capital.
Secondly, the leaders of the gaming industry in both Macau and Las Vegas are watching this situation unfold, with a fair amount of horror. Both jurisdictions, Vegas and Macau, are the headquarters for almost every major gaming company in the world. Virtually every gaming company has an interest in the Philippines because it is the fastest-growing market in Asia. Of course, Macau is virtually closed right now and has been for some time. It’s still very unclear what will happen there surrounding visas and how long it will take. In fact, Macau is probably the worst travel and tourism location in the world right now.
However, the potential for gaming exists throughout Asia like nowhere else. Part of why this is happening – Okada taking over the casino – is because the Okada Manila is a pot of gold right now. It’s the best property in the Philippines... Against Macau’s continued uncertainty, this truly is an asset of immense value. Okada and his group are trying to steal it, illegally. They’re not going to get away with it. But the events that have occurred speak to how valuable the Okada Manila is. It will be proven, very soon, that what Okada has done is illegal, and Universal Entertainment will get the property back.
VGCCC and ILGA approve Blackstone’s proposed acquisition of Crown
The Blackstone Group has been granted approval by two of the three involved Australian state regulators for its proposed acquisition of Crown Resorts.
“The potential for gaming exists throughout Asia like nowhere else... Philippines is the fastest-growing market in Asia. Against Macau’s continued uncertainty, this truly is an asset of immense value” Jason Ader, CEO, SpringOwl Asset Management
The Victorian Gambling and Casino Control Commission (VGCCC) and the New South Wales Independent Gaming and Liquor Authority (ILGA) have both approved the scheme, which remains subject to the receipt of gaming regulatory approval in Western Australia.
As noted by Crown, it also remains subject to the approval of the Federal Court of Australia at the final court hearing about the scheme and other customary conditions precedent. Due to the outstanding nature of the regulatory approval in Western Australia, the date for the final court hearing has not yet been set.
In providing approval, the VGCCC required both Blackstone and Crown to agree to an extensive list of conditions and protections, which the Commission says has already occurred.
Key protections include strengthening Crown’s governance through the mandatory application of the ASX Corporate Governance Principles and recommendations, which includes Crown Melbourne having a majority independent board of directors.
There are also new role requirements for the operator’s CEO and key executives, as well as the improvement of information sharing with law enforcement agencies.
Macau to introduce “10+7” mandatory quarantine measures
Macau’s Novel Coronavirus Response and Coordination Centre (SSM) has confirmed the Government will aim to introduce “10+7” mandatory quarantine measures for residents returning to Macau, easing the isolation burden of the current “14+7” policy.
The updated quarantine requirements mean returning Macau residents will only need to isolate themselves for 10 days in a designated facility, followed by seven days at home, instead of 14 days in a designated facility as things currently stand.
The news follows an announcement earlier this week from Ho lat Seng, who noted either a “10+7” or 7+7” measure would be introduced.
At a press conference on 9 June 2022, the head of Macau’s SSM, Leong lek Hou, said: “The government is mainly considering the ‘10+7’ measures, there is no plan to launch ‘7+7’.”
It looks like Macau is set to take the cautious approach.
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