Inside Asian Gaming

INTERNATIONAL BRIEFS Bermuda: No Referendum on Casinos The government of Bermuda has scrapped plans for a referendum this year on whether to legalize casinos. A bill authorizing the vote on legalization, which is strongly supported by the government as a means to boost the island’s tourist economy, was expected to be approved by Parliament. But reports that the opposition party would boycott it led Premier Craig Cannonier last month to announce that the issue will be addressed instead through an upcoming bill to be followed by a public information campaign to sway public support. The opposition has denied the reports and says it supports a referendum. Tourism Minister Shawn Crockwell has said legalization will result in a “regulated and dynamic gaming industry” for Bermuda, a popular destination in the Atlantic Ocean near the Southeastern United States, and he has pointed to successful markets in Aruba, the Bahamas, the Dominican Republic and Puerto Rico as models for the economic benefits the island will enjoy. “Our research shows that if done correctly the introduction of casino-style gaming in Bermuda can generate much-needed revenue for the government and provide jobs and even careers for our people,” he said. The proposed wording of the ballot question sparked controversy, however. Some lawmakers accused it of being tilted to ensure a yes vote. David Burt, shadow minister for Finance, called it “unquestionably loaded”. LVS Won’t Reign in Spain Las Vegas Sands has canceled plans for a US$30 billion gaming resort complex in Madrid, saying the development was no longer in the best interests of its shareholders. EuroVegas, as it was called, was to include 12 hotels, six casinos, a convention center, golf courses, theaters and entertainment facilities, theme parks, shopping malls, bars and restaurants. Both the national and local governments viewed it as a development windfall, promising hundreds of thousands of jobs in a flagging Spanish economy where unemployment tops 20%. But the project generated considerable grassroots opposition from the start, mainly over the conditions LVS attached to it. These included a relaxation of the country’s ban on smoking and a freer corporate hand in dealing with labor. “That process has been extremely thorough, and while the government and many others have worked diligently on this effort, we do not see a path in which the criteria needed to move forward with this large-scale development can be reached,” said Chairman Sheldon Adelson. In a statement, the company said it would concentrate on development opportunities in Asia, where it generates about 80% of its annual revenues and cash flows from six casinos in Macau and Singapore. The company also operates two resort casinos on the Las Vegas Strip and a casino in the US state of Pennsylvania. “Right now, our focus is on encouraging Asian countries, like Japan and Korea, to dramatically enhance their tourism offering through the development of integrated resorts there,” Mr Adelson said. EuroVegas was first announced in September 2011, but most of the last two years was taken up in deciding whether to place it in Madrid or Barcelona. Analysts mostly were skeptical of the prospects and say the reversal shouldn’t come as a surprise to investors. INSIDE ASIAN GAMING | December 2013 44 Scott O’Neil, chief executive of the Philadelphia 76ers, left, and Norbert Teufelberger, chief executive of Bwin.Party Digital Entertainment. Two Teams Make US History with First Online Sponsorships The Philadelphia 76ers of the National Basketball Association and the New Jersey Devils of the National Hockey League have concluded a multi-year marketing agreement with Party Poker, becoming the first professional sports teams in the United States to partner with online gambling. The deal between the teams, both controlled by private equity tycoon Josh Harris, co-founder of Apollo Global Management, and the Gibraltar-based unit of Bwin.Party Digital Entertainment is reported by Bloomberg to be worth at least US$10 million. Online gambling sponsorships are a staple of the European sports landscape, and more are in the works in the US, experts say, as the industry is legalized in more states, growing in public acceptability in the process, and professional sports franchises struggle to find fresh revenue streams to compete. The Party Poker deal will seek initially to leverage the teams’ large New Jersey fan bases. New Jersey is the most populous state so far to legalize online gambling and is expected this year to account for more than 80% of the total regulated market, or