The latest chapter in Crown Resorts’ intriguing history is shaping up to be just as intriguing as its predecessors. The casino operator has received a follow-up acquisition from private equity firm Blackstone that has increased its bid to a price of $12.50 per share.

Blackstone’s previous bids of $11.85 cash per share in March 2021 and $12.35 cash per share in May were both unsuccessful, but the firm’s intent appears to be undaunted as it returned with a sweetened deal

Crown made a statement to its shareholders, acknowledging the bid and stating that hat the latest offer price would be reduced by the value of any dividends or distributions declared, or paid by the group, and would be subject to several stipulations, including regulatory approvals.

Part of the company’s statement read,

“Any acquisition of Crown by Blackstone would be conditional on Blackstone receiving final approval from the casino regulators in each of Victoria, New South Wales and Western Australia. Blackstone has stated that it has engaged with the regulators in relation to this issue and that the regulators’ advisers have indicated to Blackstone that there is no reason to believe that an approval would not be realised.”

“Blackstone has stated that this position is subject to the provision of further information and that the regulators’ advisers are continuing their review.”

“Blackstone has stated that it is prepared to proceed with the proposed transaction upon Blackstone receiving final confirmation of suitability from the regulators, even if the Perth Royal Commission remains ongoing, Crown’s consultation process with the NSW Independent Liquor & Gaming Authority remains ongoing, the legislation to implement the recommendations of the Victorian Royal Commission is yet to be finalised or passed, or the current AUSTRAC investigations are not completed.”

Blackstone would fund the proposed acquisition via a combination of debt and equity. The organisation holds a current shareholding of 9.99 per cent in Crown, acquired in April 2020 from Melco Resorts & Entertainment for $8.15 per share.

Crown revealed that its board does not have anything to share as yet regarding the latest bid, saying

“It will now assess the proposal, having regard to the value and terms of the proposal and other considerations. It will also engage with relevant stakeholders including regulatory authorities.”

The company has employed the financial advisory services of UBS and Gresham Partners and Herbert Smith Freehills has been added as the legal adviser for the offer.​

Australia’s media and communications watchdog is reportedly embroiled in a difficult battle against iGaming sites that are plying their offerings to local punters while unlicensed.

The Guardian newspaper reported that the Australian Communications and Media Authority (ACMA) is empowered by the provisions of the Interactive Gambling Act of 2001 to force domestic Internet service providers to block access to unlicensed online gambling domains. The regulator has recently placed 18 sites on its ‘blacklist’ of proscribed services, bringing the total number to 222.

Ten troubles

The newspaper report further stated that the ACMA has yet to tackle ten iGaming domains that are reportedly offering their services to Australian punters without an appropriate license despite the regulator being aware of their existence for some time now. The publication’s  source revealed that these domains comprise Fair Go Casino, Two Up Casino, Red Dog Casino, True Blue Casino, Cherry Gold Casino, XPokies, BoVegas and PlayCroco, which calls itself an ‘online casino for Australian pokie lovers.’

When crime pays

The Guardian report continued, stating that the Asia-Pacific iGaming market has an estimated value of $70 billion and that Australian punters flocked to these services in their droves due to the numerous stay-at-home orders that were enforced in response to the coronavirus pandemic. The ACMA advised that it is ‘proceeding with the enforcement and disruption options’ it has at its disposal, including ‘website blocking’. The body revealed that it encounters many obstacles to its investigations as some of the offending sites’ use software from Internet infrastructure specialist, Cloudflare, to conceal their registrations.

Heavy penalties

An ACMA spokesperson reportedly advised the newspaper that screening technology of this type flies in the face of the Interactive Gambling Act of 2001 and that over 86% of illicit providers abandoned their Australian market aspiration after being contacted by the regulator or receiving a ‘formal warning.’ Unlicensed domains can face fines of up to $1.1 million for every day that they operate in the country without a valid license.

Eagle eye

The ACMA further stated that its website blocking initiative began in n November of 2019 and the action is now considered to be ‘effective in disrupting gambling services being provided into the Australian market.’

The spokesperson characterised the world of online gambling as ‘a challenging and complex environment to regulate,’ stating that the AMCA engages with licensed providers and stakeholders ‘to raise awareness of Australia’s online gambling laws.’

The spokesperson wrapped up by saying,

“Some of the illegal gambling services whose sites have been blocked have either withdrawn of their own accord or have not taken any action to circumvent the blocks. Others have sought to circumvent the blocks by launching mirror sites. We monitor and block mirror sites, sometimes repetitively.”

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Wealthy Chinese businessman, Linong Ma has levelled a lawsuit against two junket operators and SkyCity Adelaide. The legal action follows allegations that the junketers, Xiongming Xie and his associate, Zhuangqian Fang, defrauded Ma to the amount of A$4.84 million and that Xie has close ties to organized crime.

For SkyCity Adelaide’s part, the operation is accused of breach of trust and negligence.

Junket gambling in a nutshell

Junkets were invented in the 1950s and provide casinos with high profile clients that they effectively scout in exchange for a monthly commission, provided the clients produce an expected level of profit for the house. Once these punters return to where they came from, the junket and the casino will settle any outstanding balances.

Chinese Junket clients pay money to junkets via bank transfer before they embark on their trips and these amounts are converted into “rolling chips,” non-negotiable tender accepted at VIP rooms of specific casinos.

This practice subverts the Chinese government’s disdain at large sums of money being taken out of the country and allows high rollers to sail past any potential bureaucratic obstacles.

The set-up

The events leading up to the filing of the lawsuit paint a sordid tale of deception.

Ma arrived at SkyCity Adelaide on May 21st, 2019 as part of a junket put together by Zhuangqian Fang. Ma later began to strongly suspect that Xie was actually behind the operation and using Fang’s junket license to obscure his role.

Ma was accompanied by a Ms. Goh on his junket, an individual identified by the lawsuit as being “employed or engaged by Mr. Xie as an escort or hostess for high-rollers.” A Ms. Zhang, also apparently employed by Xie, was also present, playing Baccarat

Ma withdrew $400,000 in chips with his sights set on baccarat and unfortunately promptly lost $370,000.

The next day saw Ma emerge with renewed energy, evident in his withdrawal of a further $600,000. The night’s rest seemed to have changed his fortunes and he found himself on a red-hot winning streak. He eventually walked away having accumulated $5,048,500 over and above his stake.

Unfortunately for Ma, this is when his luck ran out.

The con

Ma made the practical decision to cash out his chips, but his assigned companion, Ms. Goh, advised him that this could only be done the following Monday. A heated exchange with his escorts ensued, with the lawsuit describing the escorts as “behaving in a furtive and suspicious manner.”

Ma had to travel to Hong Kong for his son’s graduation and had the chips secured in a SkyCity safety deposit box that came with the promise that he had exclusive access to its contents.

Ma’s plans to return in June and collect his chips were dashed when it became evident that the bulk of his winnings had been transferred by SkyCity on May 29th.

The lawsuit alleges that the beneficiary of the transaction was Xiongming Xie and that no effort has been made to return Mr. Ma’s winnings to him.

Unmasking Xiongming Xie

Xie’s shadowy presence in this incident has dragged this reclusive individual into the light and several details have emerged.

The lawsuit claims that Xie has “substantial gambling debts” and that he is a known associate of junket operator Tom “Mr. Chinatown” Zhou, a criminal wanted by INTERPOL. The lawsuit further alleges that Xie is a “dangerous and violent criminal” who has been barred from all Australian casinos.

A 2016, assassination attempt at his Sydney home left Xie with multiple stab wounds that he managed to survive.

Three years later in 2019, he found himself being accused of being at the other end of the blade when he faced criminal charges in Australia after allegedly menacing a man with a knife while demanding a $10 million property transfer.

The lawsuit also claims that he has “links with Asian Triad criminal gangs.”

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Microgaming’s highly anticipated Deadmau5 themed slot will soon be live and ready to play. The title is based on the world-famous electronic artist’s cube v3 tour and will include the mesmerizing artist-created visuals and music that made the tour an electrifying experience for audiences across the globe.

With a planned October release, the game will fuse electronic music with online gaming, giving a whole new audience the chance to be enchanted by the rhythmic beats and visuals.

Deadmau5 who is now 39 originally hails from Germany and is one of the most successful electronic dance music artists in history with Grammy nominations and a catalogue of chart-topping albums under his belt

Gameplay at a glance

The Deadmau5 slot will play out on a 5×3 reel, 243 ways to win format, and offers a top potential of 2100x your stake. The top-end may feel a bit low, especially considering the game’s high volatility and less-than-friendly RTP of 95.22%. The well-known Rolling Reels mechanic makes an appearance alongside free spins, wild reels, and multipliers up to 10x your stake.

Wagering and winning

You can bet anything from $0.20 to $100 and, as mentioned before, the most you can win from a single spin is a somewhat meager 2100x your stake.  Players are likely to conclude that a more forgiving volatility would have been a better fit for this slot.

The features explained

The rolling reels mechanic ensures that your wins work for you. Winning symbol combinations will award you your initial payout, but then the symbols are removed from the reels, leaving empty space for new symbols to land in their positions. This can potentially trigger a chain of winning combinations.

The game logo acts as a wild symbol and appears on reels 2, 3, and 4. It substitutes for any other symbol except the scatter.  The combo-bridging magic of wilds is also given to you in the form of the random Drop the Wild feature where any one of the middle reels can spontaneously transform into a full wild reel.

As with most cases, free spins is where all the magic happens. Landing 3 to 5 scatters on the reels will activate this feature, giving you from 15 to 25 free spins and an instant prize of up to 250x your stake.

A multiplier trail is a logical complementary feature for Rolling Reels and Microgaming has incorporated one into this title. You can get up to 10x your stake after 5 consecutive winning rolls, just remember that the multiplier will reset on a losing spin.

Look & feel

The background images are laser-spun abstracts and beat visualizations to complement the neon-lined card suits that serve as lower-value symbols and ecstatic female dancers getting lost in the beat who represent the higher-value symbols.

The graphics are fitting and representative of the artist and the music genre, but the whole package feels a bit minimalistic and basic, with players likely expecting much more of a spectacle than they’re going to get.

Conclusion

This slot will be a treat for Deadmau5 fans as it includes the artist’s iconic visual style and music. This is a solid branded game, however, there is a lot of room for improvement with regards to the inner workings of this title.  The RTP is particularly concerning as it is a clear indication that you are likely to get less winning joy from this experience that the average slot out there.  This slot’s appeal, sadly, may not extend much further past die-hard fans of the artist and art it is themed around.​

Whittlesea venues lead Victoria in pokie losses

The Victorian Responsible Gambling Foundation recently revealed data regarding the venues in the state with the highest levels of pokie losses from 2019 to 2020. The town of Whittlesea claimed the unfortunate recognition of having four of its establishments featuring in the top 10.

The Epping Plaza Hotel occupied the first spot on the list, its players lost $15.29 million on poker machines during the 2019/2020 financial year. Mill Park’s Plough Hotel was second, with its pokies claiming $15.04 million over the same period.

Excelsior Hotel and Bundoora Taverner are both Whittlesea venues that also made the list with the former raking in $13.12 million via pokies, while the latter took $12.87 million from players.

Pokie spend per day

The report broke down the data in several aspects, including a per-city ranking of daily expenditure on poker machines. Whittlesea didn’t claim the top spot but still managed to break the top 10. Here they are in descending order.

Melbourne ($231,523)

Kingston ($234,798)

Wyndham ($290,567)

Monash ($301,945)

Whittlesea ($303,716)

Hume ($306,016)

Greater Geelong ($326,219) This city boasts the largest number of venues with pokies and most overall pokies on the list.

Greater Dandenong ($326,882)

Casey ($362,632)

Brimbank ($391,518)

A matter of concern

While some may have seen Whittlesea’s high place on the rankings as something to be proud of, others were troubled by the news. The Whittlesea City Council has recommended changes to the pokie industry before COVID-19 restrictions are lifted. This request is backed by the fact that $1 billion has been saved by Victorian residents who were unable to access gaming establishments due to their temporary closure in April.

Ms. Lydia Wilson, Whittlesea’s Chair of Administrators gave her perspective, “Some gaming venues are open until the small hours of the morning. Unemployment and stress caused by impacts of COVID-19 are at a record high, putting added pressure on vulnerable people succumbing to gambling harm.”

The city council recommends that gaming venues should be required to close at midnight and that this measure be implemented before their post-pandemic re-opening. A pokie buyback scheme was also proposed that would enable venues to create more family-friendly environments, similar to a program currently underway in the Australian Capital Territory.

Crunching the data

The Victorian Responsible Gambling Foundation’s website contains a repository of research, statistics, and state-wide polling. Here are some pertinent facts relating to the state’s gambling habits.

• From 2017 to 2018, the average loss per adult by gambling was $1163 in Victoria as compared to the average of the rest of the country of $1292. Over that same period, the average pokie loss per Victorian adult was $539, lower than the average for the rest of Australia at $650.
• Victoria’s overall pokie losses rose by $86 million from 2017 to 2018.
• A survey reveals that one in 14 Victorians admitted to losing more than $100 on gambling in the previous month.
• A moderate-risk gambler can negatively affect up to three others, which would be approximately 392,000 Victorians.
• The Australian gambling industry’s 2018 advertising expenditure was $273.2 million, an increase of $89.7 million from 2011.
• Victorians aged over 75 are least likely to develop problem gambling habits.
• A survey showed that 18% of women had gambled in the previous month with the figure for men standing at 28%.
• A third of Victorians think responsible gambling equates to betting less than once per month
• One in five Victorians who do gamble could be negatively affected by their favourite pastime, which is equal to 550,000 individuals.
• Another survey demonstrated that 2.8% of individuals had reported being harmed by someone else’s gambling in the previous 12-month period. Considering the adult population of Victoria, this is equal to 122,500 people.

Victorian Responsible Gambling Foundation

The VRGF functions as a statutory authority that was established by the Victorian Parliament to address gambling harm in its community. The foundation’s mission is to provide support to problem gamblers and those negatively affected by another’s addiction. The organisation seeks to grow its strength and the resources to achieve its goals through strategic partnerships with similarly aligned groups and individuals.

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Eyecon is an Australian independent online pokie development studio and the most recent signee to Microgaming’s monolithic network. The industry giant will now host Eyecon’s complete portfolio of online gaming content on its iGaming platform, exposing it to a whole new international market.

All Eyecon’s games, including its popular titles, Temple of Iris, the colourful Fluffy Favourites, the syrupy-sweet Sugar Train, and the evergreen Shaman’s Dream will be available across Microgaming’s partner network.

Microgaming extensively uses its content delivery platform to allow its global book of operator partners access to over 800 pokie releases. The firm holds regional distribution licenses for online gaming in over 20 international jurisdictions.

A serendipitous joining

Many developers would leap at the chance to form a partnership with Microgaming as the benefits are significant.

Eyecon Commercial Director Paul Gielbert was glad his company took the leap, saying the fantastic opportunity opened many doors to expansion. As part of the deal, Eyecon will be sharing its arsenal of player-engagement tools.

Strength in numbers

Microgaming Commercial Director Leon Thomas explained how the deal was excellent news for both parties. While Eyecon will now have its pokies exposed to a global market, Microgaming gets to add a large bank of premium content to its online gaming portfolio.

Currently, Microgaming’s content providers include big names like Gameburger Studios, Sling Shot Studios, Alchemy Gaming, Fortune Factory Studios, Neon Valley Studios, All 41 Studios, and Triple Edge Studios.

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