Monthly Archives: May 2015

Baha Mar faces further delays as rumors swirl of a Genting buyout

The troubled Baha Mar casino project in the Bahamas isn’t likely to open this year and rumors are flying that Malaysian conglomerate Genting Group is looking to buy out the original developer.

Developer Baha Mar Ltd. has been trying to birth its $3.5b resort project on the Bahamian island of New Providence since 2008. When the global economy crashed, Chinese state-owned firms China Exim Bank and China Construction America (CCA) rode to the rescue and construction began in February 2011. Since then, the project has encountered fresh delays and the search for scapegoats has sparked a vicious battle of he-said/she-said between the developer and the Chinese firms.

On Monday, a Bahamian gov’t source told local media outlet The Tribune that Baha Mar Ltd. does “not have the cash to finish the project or pay the contractor.” In March, the Tribune reported that CCA “admitted they slowed down” work on the project because it hadn’t been paid for work done in February.

Monday also saw a tabloid report that Bahamian Prime Minister Perry Christie had struck a deal that would see Genting acquire a 51% stake in the project. Baha Mar Ltd. senior VP of gov’t affairs Robert Sands subsequently claimed there was “absolutely no truth to [the Genting] story and I categorically deny it.”

Iran Poses Cyberthreat to US Firms, Infrastructure: State Dept.

A State Department security report sent to U.S businesses warns that Iran is “rapidly building cyber warfare capabilities” and may be planning a cyberattack on global critical infrastructure, according to The Washington Free Beacon . The internal report sent to businesses last week by the Overseas Security Advisory Council concluded that Iran’s offensive cyber capabilities have rapidly evolved, with Tehran now considered a “sophisticated cyber adversary.”

WSOP 2015 Online and Live Play to Coexist in New Twist

Get ready, WSOP 2015 players, for a brave new world where online and live play meet up and hopefully don’t collide. Because this year, you’ll be able to play one tournament on your tablet and another on the felt, simultaneously, with a few caveats. Online poker in Nevada may not be big business at the […]

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Harry Reid Gives Up on Online Poker

Harry Reid may have finally abandoned his quest to legalize online poker, as he enters the final months of his career. After three decades in politics, Reid recently announced his decision not to seek reelection in 2016. Speaking, to the Las Vegas Sun this week, the Senate Minority leader, who supports a ban on online […]

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AGTech narrows losses in Q1; China lottery director accused to taking bribes

Hong Kong-listed lottery technology supplier AGTech Holdings Ltd. managed to trim its losses in the first quarter of 2015.

AGTech reported a loss of HKD 37.3m (US $4.8m) in the three months ending March 31, an improvement over the HKD 46m lost in the same period last year. Revenue nearly doubled year-on-year to HKD 48.5m but costs of sales and service nearly tripled to HKD 33.7m. Gross profit rose 20.9% but margins fell to 30.6% from 47.7% due to increased competition in China’s sports and welfare lottery market.

AGTech says its revenue boost was largely attributable to contributions from paper scratch ticket hardware manufacturer Zoom Read, which was acquired during Q1. AGTech’s bottom line was undone by share-based payments to directors and other staff, which totaled HKD 22.2m. The company also took a hit from costs associated with its recent acquisition of Score Value Ltd., a developer of handheld technology, games and systems for the Chinese market.

Looking ahead, AGTech expects other Chinese provinces to sign up for its Lucky Racing virtual racing joint venture with UK bookies Ladbrokes and its e-Ball virtual football operation. However, the two products are currently available only in lottery shops in Hunan and Jiangsu provinces respectively, and AGTech has been promising that other provinces will be coming on board for over a year.

Vietnam launches trial for M88.com agents

Vietnamese authorities have commenced court proceedings against 59 individuals caught up in the bust of a ring tied to online gambling operator M88.com.

In January 2013, Vietnam’s Ministry of Public Security broke up a “transnational gambling ring” connected with the Philippine-licensed M88.com following a three-year investigation. Last June, charges were filed against 59 individuals, some of who acted as agents and money-movers on behalf of M88, which police have described as the most popular online betting site in Vietnam.

Among those arrested was Nguyen Le Sand, the former deputy director of marketing at Vietnam International Bank, who was allegedly paid US $100k to allow M88 financial transactions to be conducted through eight bank accounts. The operation is believed to have handled over $92m in wagers from nearly 12k customers before the authorities pulled the plug. The ring’s biggest whale reportedly generated $415k in total bets.

On Tuesday, the trial of the 59 accused got underway in Ho Chi Minh City People’s Court. Prosecutors have proposed charging six individuals with the serious offence of gambling organization while the others are facing mere illegal gambling charges. The trial is scheduled to last until May 19. Police are still on the trail of suspect Nguyen Vo Hoai Tram, who is believed to have been M88’s first agent on the ground in 2010.

Evolution Gaming posts quarterly revenue record, inks five for new Belgian studio

Live dealer online casino specialist Evolution Gaming has delivered an impressive performance in its first ever earnings report as a publicly traded company.

Evolution says revenue in the first three months of 2015 came to €15.4m, a 43% year-on-year improvement. Evolution, which began listing shares on Stockholm’s NASDAQ First North Premier market in March, says the quarter was marred by €4m in non-recurring expenses involved with the initial public offering. As such, Q1 earnings per share fell 50% to €0.04 and profit fell one-third to €1.4m. Absent those IPO bills, earnings would have nearly doubled to €6.2m.

Evolution CEO Jens von Bahr said the quarterly revenue was a company record thanks to good growth in the company’s existing customer portfolio and increased mobile usage. One-fifth of Q1 revenue was derived via mobile devices.

Discounting those pesky IPO costs, margins increased 11 points to 40%, easily topping Evolution’s 35% target. Von Bahr said the conditions for live casino operations “have never been so good as they are today” and bode well for Evolution’s future.