This week’s casino rumour highlights the big industry deal related to the regulators of Mississippi. Try focus is towards the denial to become the would-be casino builders. The sources are battle over casino expansion by North Dakota’s legislative.
The story just didn’t start abruptly. Rather it’s deep. Everything started with the blockbuster deal that involved the Las Vegas Sands Corporation and its idea of purchasing Wynn Resorts. Later on, the spokesperson from Wynn stated in his verdict that the entire concept was just a rumour. But, some reporters still speculate that Sheldon Adelson was ready to pay around $125 per share for the takeover.
The rumour took a massive rile as soon as it crossed it’s $103.80 per share limit the NASDAQ exchange. The sudden rise to $108.60 before settling at $106.17 started driving cautiously all around. The significant point was that the stock wasn’t involved in trading since September 2016.
Tracing the start of the rumour
Just after the Wynn spokesperson’s debunking, reporters started their work of finding the source of the original rumour. It’s a well-known fact that the Wynn’s stocks started witnessing a steep dive in 2014 when the Chinese government started building strategies to curb corruption and money laundering. Later on, in March 2014, the stock was seeking a steep rise of value at around $240 per share.
Rejection of Proposals for Two Coastal Casinos
Recently, the regulators in Mississippi rejected the special proposal of building two casinos on the state’s Gulf Coast. The most interesting part is that this is the second time it’s happening. It rejected the application for permission of building a casino in Biloxi. The other is the application from Jacobs Entertainment for building one in Diamondhead.
The present scenario
Wynn is more trailing only Galaxy Entertainment when it comes to the VIP segment. Again, the Macau casinos are predominantly marking their presence in only a shell of the pre-coronavirus selves.
Wynn is Not available for Sale
Adelson in his verdict to investors in April marked that the firm has enough balance sheet and the potential market presence when compared to its competitors.
He also started that pre coronavirus outbreak, the market cap up was equal to the combined total value of the combined market capitalization of its competitors.
Even the Wynn CEO Matt Maddox remarked that Wynn Resorts are definitely ideal for Sands. But, at any cost, it won’t consider mergers or acquisitions.
The two competitors of Sands
In the course of time, DeCree identified two competitive giants: Australia’s Crown Resorts and Okada Manila. He remarked that both these casino monsters are going to allow Sands to expand and thrive in the areas of Chinese gambling.
Okada Manila would grant Sands $300 million in terms of the EBITDA. But, the constraint begins when the Filipino gaming industry isn’t that transparent. It’s pretty weaker when compared to the markets in Nevada, Macau, and Singapore.
Crown is now paying its major focus towards the $1.5 billion Crown Sydney property. But, the authorities in New South Wales are
continuously investigating its moves. The state officials have also reported the alleged ties to Chinese criminal syndicates.
The Crown bears a massive collection of high-quality assets due to it’s strong to come with the solid Chinese VIP junket business. We have to just sit and wait to witness the rest of the competition.