Chinese Online Lottery 500.com Pays Off Nicely for Investors

Chinese online lottery 500.com has entered the ny Stock market, and is apparently winning (Image: Wan Li/China Daily)
Investors in Chinese online lottery platform 500.com Ltd. are off to a happy start to the New Year; in the six months since its ny Stock market birth, the value of the company has almost tripled from its initial public offering price of $13.
Winning the Lottery Lottery
As the only Chinese lottery firm to be listed in the United States, 500.com is one of only a handful of companies set to enjoy the Chinese government’s whittling down of thousands of private lottery operators, because they license and regulate the industry to just a tiny number of companies. All of these will ultimately be vying for the potential market of over 400 million lottery players in the united states.
‘Over the next 5 years it is very clear that the market that is chinese continue steadily to grow rapidly therefore the federal government regulatory regime will end up more open and transparent,’ explained 500.com’s primary financial officer Zhengming Pan.
China’s lottery market has removed remarkably in recent years, thanks to an increase in disposable income through the country, as well as a nationwide appetite for gambling and advancements in gaming technology. Because of this, China’s lottery spending reached $23 billion in 2012, while the U.S. the lottery market that is largest in the planet was still staunchly in the no. 1 spot with $37 billion spent annually on tickets.
Experts expect the Chinese lottery market to grow by 20 percent over the next three years, and even predict that they will jump into the leading spot by 2015, because the U.S. is anticipated to notice a much slower growth price during that same time period.
Playing Asian Lottery Catch Up
The government is unquestionably anxious to expand in the 7-8 percent of Chinese adults who currently purchase lottery tickets, especially because the wider Asia Pacific region is currently seeing 70-80 percent of adults tickets that are purchasing. To increase this percentage, skillfully developed state that the federal government are looking to improve payouts, bring new services and products forward, and distribution that is indian dreaming slots free play widen, making it easier to purchase tickets from more locales.
‘ The government that is chinese to consolidate the current lottery market, making it simpler to control and regulate,’ explained Hoffman Ma, deputy chairman of Success Universe Group Ltd., an outfit authorized to provide recreations lottery sales agency services in three of China’s provinces. ‘They are seeking operators with stable platforms and desire to ensure that most bets that come through will pay tax.’
While lotteries in Asia have mostly consisted mainly of old-fashioned paper tickets, single match games which give punters the opportunity to bet on the results of basketball or football along with video lottery terminals and scratch card games have be a little more typical in current years. And since the government legalized Internet and telephone lottery channels at the conclusion of 2012, taking part is easier and much more popular.
But, popularity in the U.S. is often garnered by enormous jackpots reaching into the hundreds of millions of dollars. China, on one other hand, still caps their jackpots at 10 million yuan ($1.65 million). Like in the States, not winners that are only; a portion of the arises from the seats which cost between 2 yuan and 200 yuan go towards supporting various sports and welfare charities.
PartyPoker to Sponsor Devils, 76ers for Advertising First
A new marketing alliance between on line site PartyPoker and two New Jersey area recreations teams is a first
Sports betting could be the many greatly limited as a type of gambling in the United States, but let’s not pretend: everybody else knows how to put a bet on a common teams if they wish to, whether that’s with their local bookie or at a sportsbook that is online. But the major sports leagues in america still have guarded relationship with the gambling industry, often fighting states like New Jersey that want to expand sports betting.
New Marketing Territory
Nevertheless, that is not stopping one owner from taking benefit of the newly regulated brand New Jersey market to find a new sponsor for their groups. Both the brand new Jersey Devils therefore the Philadelphia 76ers will now be sponsored by online web site PartyPoker, the first such deal for any major professional teams in the usa.
The two teams are both owned by Josh Harris, and both also have big fan bases in and around New Jersey. The Devils actually play here, while the 76ers are close enough that there’s plenty of media coverage in southern nj along with an abundance of fans who could potentially play at the bwin.party-owned web sites in that state.
‘We are proud to welcome PartyPoker to our family members once we embark on an journey that is exciting an innovative, global frontrunner within the digital marketplace,’ said Scott O’Neil, CEO associated with Harris-owned groups. ‘ As an organization, we shall continue to align with brands that wish to grow with us, in true partnership.’
No Sports Betting, But Gambling Okay
Both the NHL therefore the NBA have already said they’re fine with both among these sponsorships. It surely helps that this particular on the web gambling is in a market that is regulated nevertheless the key here is really that sports wagering isn’t part regarding the New Jersey online gambling scene, at the least not yet.
‘As long as the gambling site doesn’t include sports gambling or sports wagering, it’s now allowed within our rules,’ said NBA vice president Mark Tatum.
For PartyPoker, the deal will hopefully give the company a leg up in ab muscles competitive brand new Jersey market by partnering them with two revered regional franchises.
‘These are typically two of the most iconic names in United states hockey and basketball with huge and fan that is loyal throughout New Jersey plus the surrounding metropolitan areas,’ said bwin.party chief executive Norbert Teufelberger. ‘There is an affinity between playing in online poker tournaments and activities winning is mostly about having intense focus, stamina and a good competitive spirit.’
In a way, the announcement ended up being a relief for fans of both teams particularly fans for the Devils. The Devils’ Twitter feed have been fans that are teasing a ‘huge announcement’ that was coming on Thursday, leading some to fear all sorts of potential modifications for the team, up to and including the chance of the team relocating.
According to reports, the agreement is worth at least $10 million. It’s the very first such contract within the usa, though the Toronto Maple Leafs did previously have marketing contract having an gaming company that is online.
Rick Burton, a former Australian Basketball League commissioner and present sports management professor at Syracuse University, said that the deal makes sense that is perfect both teams.
‘You’ve got all these teams and leagues where everybody is being told you better be able to sell, but every possible category has been explored,’ Burton said. ‘Here, there’s a salesman who says, ‘I can get you money that is big you have to let me within the gambling space.”
MGM 2014 Outlook Points to Overall Growth and Recovery
MGM Resorts’ CEO Jim Murren has a lot on his plate for the following years that are few and investors would like a bit of the pie. (Image: Steve Tetreault, Stephens Washington Bureau)
Seeking investment ideas for the year that is new? Consider MGM Resorts, is the expressed word decreasing from gaming analysts who are bullish regarding the video gaming outfit.
Based on experts, MGM Resorts International hasn’t had this kind of outlook that is bright quite awhile; the casino conglomerate has so many pending projects both into the States and abroad regarding the docket right now that industry analysts are giving them a silver star for ‘fresh ideas’ when it comes to stock investments.
Stocking Up
J.P. Morgan gaming analyst Joe Greff actually called MGM a ‘top gaming investment idea’ in an industry that is recent note, saying that the business’s stock prices are really worth a second appearance these days. Stocks which closed late last week at $23.45 are showing an 85 % jump within the last year, and experts predict even more subtle gains to come.
Part of the positive picture is pinned to Las Vegas’ plus the general U.S. casino markets’ continuing recovery through the brutal hit they all took during the recession. Credit Suisse gaming analyst Joel Simkins says that MGM ‘remains the operator that is best-positioned capitalize on the continued recovery of Las Vegas since the U.S. economy recovers.’
The outlook that is rosy stems from the bevy of anticipated new casinos and ancillary projects that MGM has within the pipeline. That features brand new projects on the Las Vegas Strip: MGM has $100 million cycling on a shopping that is new dining and entertainment area that they are constructing between company-owned casinos New York-New York and the Monte Carlo. That district in change opens the door for an ensuing $350 million sports and activity complex. Projected opening dates are 2014 and 2016, respectively.
Strip Comeback
Along with 10 Las Vegas Strip casinos under their auspices, and convention bookings once more selecting up, 2014 appearance to be a far better year than years past.
‘We believe 2014 has got the potential to be always a stronger year for Las Vegas, as any meaningful uplift in the economy will give retail gamblers and leisure travelers confidence to book their trips to your Strip,’ industry analyst Simkins said.
MGM CEO Jim Murren may also be taking over the chairman position with lobbying organization American Gaming Association this year. The high-profile gig can only further cement Murren’s already solid reputation as a mover and shaker in the American casino industry as that group continues to try to redefine legal gaming in the U.S.
But thatis only the tip of the iceberg for MGM’s construction projects. As a whole, the business has $3 billion going towards not merely nevada, but also brand new ventures in Atlantic City and the very profitable Macau Cotai Strip aswell.
The company is waiting for licensing re-approvals for a 50 percent vestment in one of the more successful Atlantic City casinos, the Borgata in New Jersey. To avoid regulatory hassles back in 2010 because of their other pending U.S. projects, MGM permitted their profit shares of Borgata which were about $110 million to be held in trust while issues surrounding their ties for their Macau task’s casino partner Pansy Ho were ironed away. The allegations were that Ho’s casino magnate father Stanley had ties to Asian mob figures; allegations that all parties have actually denied.
Regaining that licensing footing would bring cash flow from both Borgata’s land gaming and new ventures pouring back in MGM’s coffers.
Meanwhile, in Macau, it is looking like a 2016 opening because of their $2.6 billion Cotai Strip project, and this may be the company’s second casino in the #1 video gaming revenue area in the world.
But wait, there’s more.
While still awaiting last regulatory approvals, an $800 million hotel casino in Springfield, Massachusetts would ensure it is one of the Bay State’s first land gaming facilities; and another $925 million resort in National Harbor, Maryland perched simply away from nation’s capitol result in the company’s expansion efforts also more enticing. Those projects expect a 2017 opening date.
In general, it’s a marked turnaround from their financial outlook of just a couple years back. Back in 2009 during the height associated with recession which hit the Las Vegas Strip particularly hard their $8.5 billion CityCenter complex seemed like a huge financial drain on their bottom line; but MGM has paid down its long-term debt to $13 billion an amount not considered egregious when compared to, say, Caesars Entertainment’s at $23 billion + along with extending their loan maturity dates to closer to 2020.