PricewaterhouseCoopers 2015 Outlook Missed Macau Meltdown and DFS Introduction
One of the ‘Big Four’ audit firms, the accuracy of PwC’s five-year Global Gaming Outlook published in 2011 is gradually coming to light.
PricewaterhouseCoopers’ (PwC) Global Gaming Outlook, published in 2011 forecasting the half-decade leading to the current, hit the nail in the head regarding much of the gambling industry’s economics, nevertheless the company missed the mark on two key issues.
PwC got a lot right in its five-year perspective on gambling, but failed on just what has emerged since the two most predominant dilemmas in worldwide gambling news: Macau’s economic issues and daily fantasy sports (DFS).
To its credit, PwC rightly foresaw on the web gambling in the us, saying states would legalize Internet casinos independently before Congress would intervene.
That had been a projection that is bold 2011, considering the Department of Justice and FBI had just lately seized the assets of PokerStars and Full Tilt Poker, but nonetheless a forecast that came true.
PwC also correctly hypothesized Internet gaming could be used to complement land-based casinos, a prophecy that arrived to pass as Nevada, New Jersey, and Delaware all require online operators to work in tandem with brick-and-mortar casinos or race songs.
The audit and assurance, tax advisory, consulting, legal, and actuarial corporation disclosed that the worldwide Gaming report was not meant to provide legal or investment advice, but did state that its aim was to guide stakeholders in the company and help them decide their particular future plans.
The stark reality is that Macau has produced greater gambling revenues than Las Vegas since 2008, also it hasn’t even been close. Accounting for roughly 1 / 2 of its economy that is overall generated $45 billion in gaming revenues in 2013 and $43.9 billion in 2014.
By comparison, Nevada reported statewide gaming revenues of $11.1 and $11 billion during those exact same two years.
From the time Macau legalized gaming that is commercial 2002 until 2014, the marketplace increased a staggering 1,485 percent. Nonetheless, revenues dropped for the very first time in 2014 towards the tune of $1 billion.
the decrease was the Chinese government’s crackdown on VIP junket operators transporting gambling whales and billionaires from the mainland to casinos in Macau. Junkets organize private rooms in venues in which the Asia’s elite can play away through the prying eyes for the Chinese government’s jurisdiction.
In its Gaming that is global Outlook PwC acknowledged harsher junket regulations could be forthcoming, but still predicted that Macau would produce $62.5 billion in 2015 alone. That assumption probably would came to fruition if it weren’t for Chinese President Xi Jinping’s relentless suppression of operators attempting to help the rich evade taxation by the People’s Republic.
Instead, Macau will actually come in under $30 billion this year, a $14 billion decrease in simply 12 months.
Daily Fantasy Sports: From Fantasy to Reality
Technology makes the world in which we live ever-changing. It’s hard to believe today, but in 2011 video gaming analysts and industry insiders couldn’t comprehend the thought of daily dream activities.
In PwC’s exhaustive report that is 39-page the future of gambling, DFS wasn’t also mentioned as soon as.
That leads us to this festive season and the New that is approaching Year.
DFS leaders DraftKings and FanDuel will continue pushing their legal status through a loophole in the illegal Internet Gambling Enforcement Act (UIGEA) of 2006, while opponents will advocate the law didn’t address fantasy that is daily it simply didn’t exist at the full time.
It is a dispute with an outcome that is ensuing might have been rather impossible to predict in 2011.
American Gaming Association Study Seeks ‘Rational Alternative’ to US Sports Betting Regulation
American Gaming Association’s Geoff Freeman says the trade relationship is upgrading its fight unlawful sports gambling and exploring new solutions to America’s unregulated gambling issue. (Image: yogonet.com)
The American Gaming Association (AGA) has vowed to devote its resources throughout 2016 to the pursuit of ‘a rational alternative’ to the united states recreations betting status quo.
The trade association said it could ‘build a broad coalition’ that would explore different approaches to the current law through ‘robust research, aggressive communications and partnerships having a variety of sounds with interest in sports betting.’
The AGA’S place is the fact that while just four states are permitted to provide some form of sports betting, with the vast majority of legal bets place that is taking the casinos of Nevada, elsewhere a thriving black market in bookmaking helps you to fund organized crime.
According to AGA quotes, Americans will spend $138.9 billion on illegal sports betting this year alone.
Crusade Against Prohibited Betting
The organization has hardened its stance against illegal activities betting in recent months. Speaking at the recent Global Gaming Expo, AGA President Geoff Freeman offered a new study to demonstrate that illegal gambling had not been a victimless crime.
Examining 40 federal gambling convictions throughout 2014, including on line and land-based sports betting, unregulated gambling enterprises and animal fight rings, the research found that the quarter of all cases were linked to organized criminal activity gangs, through the nyc and Philadelphia Mafia to Texas drug traffickers.
An average of $3 million was seized, some of which would surely have been plowed into other criminal enterprises, said Freeman in each of these cases.
‘The casino gaming industry is aligned that the status quo is unsustainable,’ he said in a press launch earlier in the day this month. ‘We look forward to working with police force, sports leagues and other parties that are interested consider effective approaches to protecting consumers plus the integrity of sports.’
Threat to Consumers
According to the AGA, possible solutions might include ‘strict regulation, rigorous consumer protections and robust tools for police to eradicate illegal sports betting and strengthen the integrity of games.’
‘The culmination of a thorough process within our industry roles us to work with a wide number of stakeholders who agree that rampant, unregulated and illegal activities gambling is a threat to consumers and the sports we enjoy,’ said Jim Murren, AGA chairman and MGM Resorts Global chairman and CEO.
‘As the top associated with the largest sector that is private in Nevada, we’m confident that the entertainment experience we offer in Las Vegas, which can be unmatched somewhere else in the world, can continue to excel even as our country has a fresh check our approach to sports gambling.’
The AGA said it could work with gaming leaders, police, regulators, legislators, and professional sports leagues over the year that is coming order to attain its aims.
Russian Mega Resort Tigre de Cristal Faces Backlash Over Heavily Drugged Tiger Cub
Tigre de Cristal, the first Las Vegas-style casino to open in Russia’s Primorsky Krai unique economic zone, was loaded towards the rafters on the opening night of its soft launch month that is last.
A heavily drugged tiger cub was the celebrity attraction at the opening night of Russia’s Tigre de Cristal casino, a truth that caused outrage among the populace that is local it got out. Siberian tigers are revered and endangered. (Image: Alexander Khitrov/Siberian Instances)
Dignitaries mingled with Russian celebs and reporters from Moscow, every one of who had come to feast their eyes on the opulence of Lawrence Ho’s $900 million resort on the country’s south coast that is east close to the border with Asia and North Korea.
But an outcry has erupted in the area’s local press over one of the ‘acts’ that night, a Siberian tiger cub called ‘Crystal’ that was paraded around the casino under bright lights and music that is blaring that the casino has admitted was greatly sedated.
A casino source told PrimaMedia that ‘for security purposes, therefore Crystal would not bite anyone, she was provided a sedative.
‘The tigress is still small,’ added the source, ‘so it was impossible to do an injection. The vet came and gave her liquid medicine in a bottle. She slept all the right time.’
Nevertheless, regional news supply Vostokmedia accused the casino handling of misjudging the mood that is public because many people in Primorsky region revere the endangered Siberian tiger, of which you can find only 500 or therefore kept in the crazy, and are devoted to its preservation.
‘It is unlikely that locals comprehend when a real time tiger cub is carried around and put underneath the spotlight with loud music to your pleasure of the crowd,’ said Vostokmedia, adding that the incident will damage the casino’s reputation in the area.
Sergei Aramilev, of the Amur Tiger Centre, demanded to learn what type of sedative was applied to the tigress.
‘There are cases when pet owners provide a sleeping pills to the animals. We have to understand precisely in each instance, to master from veterinarians, what had been the medicine and what could be the consequences. Is it bad for the animal, could it be addictive? In terms of moral and ethical aspects, it’s not good.’
Local police are currently investigating exactly which drugs were administered to the animal, that is currently housed in a zoo that is local.
Casinos Vs. Animal Rights
The truth highlights the wider issue of animals being kept by casinos for entertainment purposes, one thing that has long been opposed by animal liberties groups.
While Russia recently banned the practice of making use of chimpanzees as ‘casino mascots,’ for instance, the legislation left many such animals on the career scrapheap. Media recently highlighted the scenario of one such ex-casino chimp that was indeed sent to ‘rehab’ for their addiction to alcohol and tobacco.
In the United States, there were demonstrations that are recent the Mirage’s Dolphin Habitat, which protesters say is too small and, according to one, similar to individual beings spending their everyday lives in a bath.
And previously this month, Daniel Negreanu, who works closely with animal rights group PETA, wrote to Harrah’s Cherokee Casino demanding it denounce the nearby Cherokee Bear Zoo’s ‘concrete prison,’ where bears, he stated, are kept in ‘horrendous conditions’ in barren pits.