Genting Singapore

[KopiKat]

He must be assuming all the huge Japanese conglomerates plus existing pachinko operators will passively allow foreign cos. to tender and win any bids if and when it's liberalised....

[Thriftville]

He must be assuming all the huge Japanese conglomerates plus existing pachinko operators will passively allow foreign cos. to tender and win any bids if and when it's liberalised....

I think a more likely scenario will be pachinko pairing up with a foreign casino operator. Jap corp hasn't got much experience in this business. A joint venture will be beneficial to them. Foreign operators has international client's contacts, which can help to boost the business

[KopiKat]

He must be assuming all the huge Japanese conglomerates plus existing pachinko operators will passively allow foreign cos. to tender and win any bids if and when it's liberalised....

I think a more likely scenario will be pachinko pairing up with a foreign casino operator. Jap corp hasn't got much experience in this business. A joint venture will be beneficial to them. Foreign operators has international client's contacts, which can help to boost the business

If the anticipated liberalisation do come along, for a start, they'll unlikely do it in a big way. Perhaps, only a couple of license (like Singapore) at most? If so, the domestic market will be large enough to keep them busy, no need for international high-rollers. The other thing about the Japanese, until today (even after so many years of deflation), I don't think they like having too many foreigners in their soil....

[corydorus]

Will there be a rush by other Casino operators and lesser Jap customers to come here ?

[Thriftville]

Will there be a rush by other Casino operators and lesser Jap customers to come here ?

Unlikely, the local casino business depends on customers from China, Indo & Malaysia. I think the impact of Jap casino is small.

[corydorus]

Less China and Jap relation, it does offer an attractive proposition for Chinese to gamble in Japan.

[felixleong]

that time genting raise so much $$ by issuing pref shares, end up till now also havent use the $$
I rather they pay out the extra cash as dividends than expanding too aggressively

[Thriftville]

Less China and Jap relation, it does offer an attractive proposition for Chinese to gamble in Japan.

Yes that's true. It is nearer for Chinese to fly to Japan. Genting has good experience entertaining Chinese VIP, so the Jap gov may consider granting them a license. So the profit will still go under Genting Singapore.

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that time genting raise so much $$ by issuing pref shares, end up till now also havent use the $$
I rather they pay out the extra cash as dividends than expanding too aggressively

As mentioned during AGM, Genting need the cash to bid for Japan casino. there's no point getting dividend at this level. the growth potential will reap higher return for shareholders in long run. I don't think they are really aggressive compared to Sands. If you look at their cash flow, they are quite conservative in their expansion strategy.

[corydorus]

Less China and Jap relation, it does offer an attractive proposition for Chinese to gamble in Japan.

Yes that's true. It is nearer for Chinese to fly to Japan. Genting has good experience entertaining Chinese VIP, so the Jap gov may consider granting them a license. So the profit will still go under Genting Singapore.

That's assuming only Genting is the Only Operator in Japan will there be clear advantage

[Thriftville]

That's assuming only Genting is the Only Operator in Japan will there be clear advantage

The pie is big enough for a few operators to share. Chinese gamblers are superstitious. When they lose money in one casino, they will hop on to the next.