Breakingviews

China Macau tolerance won’t last forever

June 17, 2014

The scale of the transformation of this former Portuguese colony into China’s gambling den is extraordinary. Each year it creates the equivalent of a new Las Vegas in revenue. But Beijing will eventually exercise more sway over the house’s winnings. Glimmers are already evident.

Macau casino stocks have further to fall

May 14, 2014

A crackdown on the use of China UnionPay cards in the gambling enclave is the latest scare for investors. Restrictions on cash transfers will dent growth. Though casino stocks are down 19 pct since early March, earnings multiples still don’t leave much room for disappointment.

How does a $31 bln mega-LBO become an $18 mln IPO?

February 7, 2012

What sounds like a gambling tragedy is the perplexing, yet true, story of the buyout of Caesars Entertainment by TPG and Apollo. The deal, struck at the height of the bubble, has been a tough one. Co-investors are in such a hurry to get out, they’re actually paying to exit.

A “Wynning” strategy of betting on VIPs

October 7, 2009

Top-tier casino operator Wynn has always bet on VIP gamblers. Now it is adopting the same approach with its stock market flotation. It remains to be seen whether this strategy can help justify its valuation premium.