Chinese On Line Lottery 500.com Pays Off Nicely for Investors

Chinese online lottery 500.com has entered the New York Stock Exchange, and seems to be winning (Image: Wan Li/China Daily)
Investors in Chinese online lottery platform 500.com Ltd. are off to a start that is happy the New Year; into the six days since its nyc Stock Exchange birth, the value regarding the company has almost tripled from its initial public providing cost of $13.
Winning the Lottery Lottery
As the only lottery that is chinese to be listed in the United States, 500.com is one of merely a handful of companies set to take advantage of the Chinese government’s whittling down of thousands of private lottery operators, because they permit and regulate the industry to just a little number of businesses. Every one of these will ultimately be vying for the market that is potential of 400 million lottery players in the united states.
‘Over the next 5 years it is very clear that the Chinese market will continue to develop very quickly therefore the government regulatory regime can be more open and transparent,’ explained 500.com’s main financial officer Zhengming Pan.
China’s lottery market has flourished remarkably in recent years, thanks to a rise in disposable income through the country, and a nationwide appetite for gambling and advancements in gaming technology. Because of this, Asia’s lottery spending reached $23 billion in 2012, while the U.S. the largest lottery market in the world had been still staunchly in the no. 1 spot with $37 billion spent yearly on seats.
Experts expect the Chinese lottery market to grow by 20 percent over the next three years, and even predict that they’ll jump in to the leading spot by 2015, as the U.S. is anticipated to visit a much slower growth price during that same time period.
Playing Asian Lottery Catch Up
The government is obviously anxious to expand in the 7-8 percent of Chinese adults who currently buy lottery seats, specially since the wider Asia Pacific region is currently seeing 70-80 percent of adults tickets that are purchasing. To increase this percentage, industry experts say that the us government is going to be searching to improve payouts, bring new products forward, and distribution that is widen, rendering it easier to purchase tickets from more locales.
‘ The Chinese government wants to consolidate the current lottery market, making it easier to control and regulate,’ explained Hoffman Ma, deputy chairman of Success Universe Group Ltd., an outfit authorized to offer recreations lottery sales agency solutions in three of China’s provinces. ‘They are seeking operators with stable platforms and want to ensure that all bets that come through will pay tax.’
The chance to bet on the results of basketball or football as well as video lottery terminals and scratch card games have become more common in recent years while lotteries in China have largely consisted mainly of traditional paper tickets, single match games which give punters. And because the government legalized Internet and phone lottery channels at the conclusion of 2012, participating is now easier and more popular.
However, appeal in the U.S. is normally garnered by enormous jackpots reaching into the hundreds of millions of dollars. China, on the other hand, still caps their jackpots at 10 million yuan ($1.65 million). As in the States, not only winners benefit; 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 marketing that is new between online web site PartyPoker and two New Jersey area recreations groups is just a first
Sports betting will be the many heavily limited as a type of gambling within the United States, but let’s not pretend: every person knows how to position a bet on their favorite groups when they want to, whether that’s with their local bookie or at an online sportsbook. Nevertheless the major sports leagues in the USA still have a guarded relationship with the gambling industry, often fighting states like nj-new jersey that want to expand sports betting.
Brand New Marketing Territory
Nevertheless, that is not stopping one owner from taking advantage of the newly regulated New Jersey market to find a new sponsor for his teams. Both the newest Jersey Devils plus the Philadelphia 76ers will now be sponsored by on the web web site PartyPoker, the first such deal for any major professional teams in the United States.
The two teams are both owned by Josh Harris, and both also have large fan bases in and around New Jersey. The Devils actually play here, while the 76ers are near enough that there surely is plenty of media coverage in southern New Jersey as well as lots of fans who could play at the potentially bwin.party-owned web sites in that state.
‘We are proud to welcome PartyPoker to the household even as we embark on an journey that is exciting an innovative, global leader in the digital marketplace,’ said Scott O’Neil, CEO of the Harris-owned groups. ‘ As a business, we will carry on to align with brands that wish to grow with us, in true partnership.’
No Sports Betting, But Gambling Okay
Both the NHL and also the NBA have already said they’re fine with both of those sponsorships. It surely helps that this particular on line gambling is in a regulated market, but the key here is really that sports betting isn’t part regarding the New Jersey online gambling scene, at least not yet.
‘As long as the gambling site doesn’t include sports gambling or sports gambling, it is now allowed within our guidelines,’ stated NBA vice president Mark Tatum.
A leg up in the very competitive New Jersey market by partnering them with two revered local franchises for PartyPoker, the deal will hopefully give the company.
‘These are typically two of the most iconic names in American hockey and basketball with huge and fan that is loyal throughout New Jersey and also the surrounding metropolitan areas,’ said bwin.party leader Norbert Teufelberger. ‘There is definitely an affinity between playing in online poker tournaments and sports winning is about having intense focus, stamina and an excellent competitive nature.’
The announcement was a relief for fans of both teams particularly fans of the Devils in a way. The Devils’ Twitter feed was teasing fans about a ‘huge announcement’ that has been coming on Thursday, leading some to fear a wide range of potential changes for the team, up to and including the chance of the team relocating.
According to reports, the agreement is worth at the least $10 million. It is the first such agreement into the usa, though the Toronto Maple Leafs did previously have marketing agreement having an gaming company that is online.
Rick Burton, a previous Australian Basketball League commissioner and current activities administration professor at Syracuse University, said that the deal makes sense that is perfect both teams.
‘You’ve got each one of these teams and leagues where everybody is being told you better have the ability to sell, but every possible category has been explored,’ Burton said. ‘Here, there is a salesman who says, ‘I can get you money that is big however you have to let me personally within the gambling space. »
MGM 2014 Outlook Points to Overall Growth and healing
MGM Resorts’ CEO Jim Murren has a lot on his plate for the next couple of years, and investors want a bit of the pie. (Image: Steve Tetreault, Stephens Washington Bureau)
Looking for investment a few ideas for the year that is new? Consider MGM Resorts, is the word decreasing from gaming analysts who are bullish regarding the video gaming outfit.
According to experts, MGM Resorts International hasn’t had this kind of bright perspective in quite awhile; the casino conglomerate has so many pending projects both in the States and abroad on the docket right now that industry analysts are going for a silver star for ‘fresh ideas’ whenever it comes to stock investments.
Stocking Up
J.P. Morgan video gaming analyst Joe Greff actually called MGM a ‘top video gaming investment idea’ in a recent industry research note, stating that the company’s stock costs are well worth a second appearance these days. Stocks which closed week that is late last $23.45 are showing an 85 % jump in the last year, and experts predict even more subtle gains to come.
Element of the positive picture is pinned to Las Vegas’ and 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 best-positioned operator to capitalize in the continued recovery of Las Vegas once the U.S. economy recovers.’
The outlook that is rosy stems from the bevy of expected new casinos and ancillary jobs that MGM has into the pipeline. Which includes new projects on the Las vegas, nevada Strip: MGM has $100 million cycling on a new shopping, 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 hinged door for the 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 yet again selecting up, 2014 looks to be a much better year than years past.
‘We believe 2014 has the potential to be always a stronger year for Las Vegas, as any uplift that is meaningful the economy will provide retail gamblers and leisure travelers confidence to book their trips to the Strip,’ industry analyst Simkins said.
MGM CEO Jim Murren is likewise taking over the chairman position with lobbying organization United states 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. In total, the business has $3 billion going towards not only Las Vegas, but also new ventures in Atlantic City and the very lucrative 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. In order to avoid regulatory hassles back in 2010 with regards to their other pending U.S. projects, MGM allowed their profit stocks of Borgata which were about $110 million become held in trust while issues surrounding their ties with their Macau task’s casino partner Pansy Ho were ironed away. The allegations were that Ho’s casino magnate father Stanley had ties to mob that is asian; allegations that most parties have rejected.
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’s looking like a 2016 opening due to their $2.6 billion Cotai Strip project, and this will be the company’s second casino in the #1 video gaming revenue area in the world.
But wait, there’s more.
An $800 million hotel casino in Springfield, Massachusetts would make it one of the Bay State’s first land gaming facilities; and another $925 million resort in National Harbor, Maryland perched just outside the nation’s capitol make the company’s expansion efforts even more myfreepokies.com enticing while still awaiting final regulatory approvals. Those projects anticipate a 2017 opening date.
All in all, it is a marked turnaround from their financial outlook of just a couple years ago. Back in 2009 during the height for the recession which hit the Las Vegas Strip particularly hard their $8.5 billion CityCenter complex seemed like a huge economic drain on their bottom line; but MGM has paid down its long-term debt to $13 billion a sum not considered egregious in comparison with, say, Caesars Entertainment’s at $23 billion + as well as expanding their loan maturity times to closer to 2020.
