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The Macau Metro Monitor, July 15th, 2010

MAYBE A CASINO FOR ONE OASIS Inside Asian Gaming

According to AGI, MPEL has submitted a request to the government for a casino service agreement with the consortium developing One Oasis that would allow MPEL's  gaming license to set up a casino at the planned six-star hotel.  The arrangement would be a 40:55:5 revenue share/franchise model ala SJM's third party arrangements.  One Oasis's 870 residential units are expected to be completed by 2Q 2013, but no completion date has been given for the hotel yet.

AGI believes SJM is a more obvious gaming fit for One Oasis because of the partnership Success Universe Group, a One Oasis consortium partner, has with SJM.   But one minority shareholder--Maruhan Corp--of Success Universe Group is not on good terms with SJM because of the underperformance of Ponte 16, which Maruhan blames on the property's focus on Mass rather than VIP, while SJM is unimpressed by Maruhan's inability to deliver Japanese gamblers to the property. 

Other members of the One Oasis partnership include two Hong Kong-based developers,—ITC Properties Group, a Hong Kong-listed company that worked on construction of Altira, and Nan Fung Group, a privately held company with development projects throughout Greater China—Linkeast Investments, a Macau-based company, and ARCH Capital Management, a real estate private equity fund focusing on Greater China, India, Thailand and Vietnam. 

CHINA'S ECONOMY SLOWS TO 10.3% SCMP, Channel News Asia, Hedgeye Database

2Q GDP growth slowed to 10.3% from 11.9% in 1Q, missing market forecasts of 10.5% growth.  Outstanding CNY loans growth dropped to 18.2% in June from 21.5% in May.  M2 supply moderated to 18.5% from 21% in May.  CPI fell to 2.9% in June, down from 3.1% in May and below market estimate of 3.3%.  Retail sales growth also eased to 18.3% in June from 18.7% in May.

IF YOU CAN'T BEAT 'EM, JOIN 'EM Inside Asian Gaming

An industry source told AGI: "The Western marketing guys have had their chance. Now Pansy [Ho] is bringing in the local junket guys to help with marketing. And from what I hear, they have MGM's blessing."  Some of the people involved in the VIP marketing rescue mission for MGM Macau are the same SJM-linked people who rode to the rescue of Lawrence Ho's  Altira when it teamed up with junket consolidator AMA back in December 2007.

PRIVATE HOME SALES IN JUNE FALLS TO 847 UNITS: URA Channel News Asia

The number of new homes sold fell in June to 847 units, down from 1083 transactions in May.

WILL NEW PHILIPPINES GOVERNMENT HONOR ARUZE LAND DEAL? Inside Asian Gaming

The new Philippines government is contemplating whether to approve a land ownership provision demanded by Aruze as a condition for investing in construction of a gaming resort at Manila Bay.  It has been nearly two years since Aruze, headed by Mr. Okada, put down a hefty USD$100 million deposit in escrow for the project.  Without ownership of the land, Mr. Okada may walk away from the deal.

The administration of President Aquino is also dealing with tax revenue issues with PAGCOR and why so many casino gaming licences had been issued.  "There are so many casinos in places where there are no tourists," Mr Aquino said.

TYPHOON ON THE WAY, BUT SHOULDN'T BE TOO HARD Intelligence Macau

IM sees minimal impact from Typhoon Conson (recently downgraded to Tropical Storm). In the past week or so, IM saw strong performance at The Venetian, CoD, Grand Lisboa, L'Arc, Wynn, and MGM.  VIP RC volumes are recovering from the World Cup.


OWN GOAL—CAN HONG KONG AND ITS NEIGHBOURS EVER STAMP OUT UNAUTHORIZED SOCCER BETTING?

SCMP, Inside Asian Gaming

SCMP says that because illegal gambling remains rampant,  the Hong Kong Jockey Club's (HKJC) legal monopoly  isn't working in HK and should consider the possibility of licensing private gaming franchises within Hong Kong. To combat unauthorized bookmakers, HKJC has argued that the Club should be allowed to pursue a more aggressive commercial policy including: reducing the tax levied on the bets, increasing the maximum daily dividends allowed, increasing the betting products offered and in developing the way products are delivered to customers.