Casino Industry Essay
Caesar bought the 175-acre site in 2007 for $578 million, with plans to develop a hotel and casino, but the company did not apply in the early sass for one of the limited number of gambling licenses in Macaw, and it never gained a gambling concession from the Macaw government” (2) -“As of July 31, 2013, growth in Macaw has increased to over 20% on a year over year basis boosted by an increase in the number of Chinese visitors to the country’s only legal casino gambling hub.
July’s 29. 5 billion patinas ($3. 7 billion) revenue was the third strongest figure this year, according to government data, as more middle-class gamblers visited Macaw, eclipsing the growth in the number of high rollers.
The slowdown in China’s economic growth has kept away some wealthy customers, who often spend 1 million Yuan ($160,000) per bet, but it failed to push away Macaw’s appeal for China’s rapidly expanding middle-class and their higher disposable incomes” (2) *what are pastas Why Macaw Is Attractive for Casino Industry -The number of visitors to Macaw rose 4. 2 percent during the first half of the year (in 2013) -Incisors form mainland China, who account for two thirds of
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High rollers account for about 70 percent of gaming revenues, but the share of the middle-class gamers is growing at a much faster rate and Macaw’s casinos are trying to diversity entertainment options to attract more of these visitors” (2) -Minimum table bets start at around 300 patinas ($38), compared to a year ago when offering bets for 100-200 patinas ($20) -“In the end, investors should not have seen the sale of this property as a catalyst for the stock, but instead as the huge missed opportunity to diversify the Meany’s core business and expand into an explosive new market” (2) -because the stock price went up when they sold Macaw location -Macaw casinos and hotels are now showing strong September gaming revenue -“At the current rate, gambling revenue for the month of September so far is tracking 25. 7% higher than the same month a year ago. Macaw generates annual gambling revenue topping $38 billion, larger than any other casino district in the world, about five times the annual take of U. S. Ambling in Alas Vegas” (3) -Macaw, a special gaming district on China’s southern coast, is the only place in China where gambling is legal – “We believe that the run up in CAR shares has been on the coattails of the other gaming and hotel companies and that the buying has been way overdone. Investors should look for the stock to pull back substantially after the recent rally’ *research if Casino Industry By message The most Recent Quarter- Focusing On the Important Aspects of This Business -Most recent quarter is SQ, net revenue was reported by Caesar as $2. 2 billion -A decline in casino revenue was “largely offset by increases in F&B, rooms, and managed revenue” -“The company attributes this decline to a combination of macroeconomic notations, competition, and a shift in marketing strategy.
The company has lost market share in gaming to competition, despite the company’s positioning with the World Series of Poker brand” (4) A this is about gaming competition -Alpha research believes that revenue and profits have peaked and will be on the decline next year (2014), they were correct -Income form operations: $125. 3 million in 2013, down $63. 8 million compared to the prior year, 33. 7% decline was driven by higher asset impairment charges (learn more on this) -“Adjusted EBITDA declined 8. 2% to $470. Million and property