TICKERS: NCLH, UBER
October 15: VAC 3Q CC ; PW: 13620306
October 15: WYNN 3Q CC , PW: 55746426
NCLH - Regent Seven Seas will offer unlimited complimentary Internet to all passengers, starting with its winter 2016/2017 itineraries. The luxury line, which already offers many inclusions such as alcohol, gratuities and round trip airfare, is also expanding its land tour program. Free three-night excursions will be offered in new locations such as Cape Town, Angkor Wat, Hong Kong and Beijing, and will include special experiences such as an African safari, a visit to the Great Wall of China or stop at a Thai elephant camp.
UBER - Uber has expanded its on-demand delivery service, UBER Rush in the US. Stores can now have local couriers pick up and drop off their products to customers’ doorsteps in New York City, San Francisco and Chicago. Unlike Postmates, which offers a similar service in partnership with select retailers, UberRush can be integrated into merchants’ existing business models and included as a delivery option during checkout.
Small businesses can also opt to use ecommerce software from Uber partners Shopify, Bigcommerce, Clover, and ChowNow to power their online sales and start using UberRush right away. These platforms have make it easier to request deliveries as they automatically check if an order qualifies for UberRush based on its weight, size and destination.
UBER - London Mayor Boris Johnson has a message for cities resisting Uber Technologies Inc.’s ride-hailing service: disruption is inevitable and the best you can do is manage it. “We licensed Uber a while ago in the knowledge that it will prove very difficult for the established black cab trade,” Johnson said. “We have to make sure that we do what we can to give the black cab trade a level playing field.”
Takeaway: A slightly more positive tone coming from the London Mayor. UBER faces some big hurdles in a crucial market that is London.
Casino Security - Macau’s Secretary for Security, Wong Sio Chak, said on Wednesday that the police have strengthened actions to prevent and combat illegal activities at the city’s casinos. Mr Wong added that the increased surveillance would not jeopardise the development of Macau’s gaming sector. Mr Wong told local reporters that the police have already beefed up supervision and security controls in casinos and their vicinity.
Dore Entertainment Update - The police estimate that VIP gaming promoter Dore Entertainment Ltd lost at least HK$520 million (about $66.67 million) in a theft which the company blames on a former cage manager, the Macao Daily News reports. The Chinese-language newspaper quotes the police as saying they base their estimate on 49 complaints they have received.
Korean Casino Reps Arrested - Chinese police arrested 13 South Korean casino managers and several Chinese agents suspected of luring people from China to gamble in South Korea, state television reported. In a report late on Tuesday, Chinese state television said police launched a probe in June into "criminal gangs" from five South Korean casinos, who "enticed" Chinese with free tours, free hotels and sexual services. A South Korean tourism ministry official said the 13 Koreans are employees of Grand Korea Leisure Co Ltd (GKL) and Paradise Co Ltd, and that it was unclear if they had been charged.
Saipan Casino- Imperial Pacific International Holdings Ltd’s temporary casino on the Pacific island of Saipan has attracted more patrons than expected, according to the company’s managing director, Yan Shen. Mr Yan told reporters in Hong Kong that the casino had had 5,700 to 5,800 customers a day since it opened in July. The company will eventually replace the casino with a bigger, permanent one forming part of a complete resort.
Chinese Billionaire Index - The number of billionaires in China has overtaken that of the United States for the first time, an annual survey said Thursday (Oct 15), despite slowing growth in the world's second-largest economy. China now has 596 billionaires, up a "staggering" 242 over the last year, Shanghai-based luxury magazine publisher Hurun Report said, surpassing the 537 Americans.
Nevada Unemployment Rate - The jobless rate fell to 6.7% in the month of September. That was the lowest rate since July 2008. Employers added 34,600 jobs YoY in September, for a growth rate of 2.8%. The month brought the 57th straight month of annual job gains. Construction posted the biggest percentage growth rate, with an 8.8% increase that translated into 5,700 more jobs. The industry now has 72,000 jobs statewide, up from a low of about 46,000 in the recession, but just half of its peak of 148,000 in 2006. The labor force grew as well, as job seekers entered the market. The state's work force of 1.43 million was 33,900, or 2.4%, higher than a year earlier.
Takeaway: Macro data out of NV and LV continues to improve. We expect accelerating growth in the LV locals casino market due to the improving economic environment (lower unemployment and higher housing prices) and more construction workers. We continue to like BYD on the long side.
New Zealand Cruise Market- Cruise passengers cruising in New Zealand may have to pay an extra NZ$26.22 from next year, thanks to a new 'travel tax' to be imposed on 1 January 2016. Travelers arriving in airports will pay the tax, but significantly less -- NZ$21.57 (incl. GST) per air passenger. Although it is the cruise lines' responsibility to pay the tax for each passenger, they can choose to add the cost to cruise fares, according to the Tourism Industry Association New Zealand (TIA).
REGIONAL REVENUES (SEPT):
- Connecticut SS GGR: +2.9% YoY
- Detroit SS GGR: +4.3% YoY
- West Virginia SS GGR: -3.3% YoY
- PENN: +2.3% YoY
Takeaway: September results continue support our prediction of a sequential rebound in regional gaming revenues. BYD and PENN are our long calls in regional gaming.