US hospitality giant Hard Rock International has denied rumors that it is planning to make a bid for the Australian casino giant The Star Entertainment Group. The speculations ran wild after some reports that a consortium of parties including Hard Rock’s Pacific branch had supposedly expressed interest in the embattled Australian company.

Hard Rock International to Take Legal Action Amid Acquisition Speculations

In a recent statement, Hard Rock International noted it is perplexed about these claims. The company emphasized it has not authorized any discussions or negotiations in connection with a potential acquisition of The Star, reported The Australian. 

Hard Rock International further added that it is going to take legal action to protect the reputation of its brand as no third parties have been authorized to associate Hard Rock with a potential bid for The Star. The company also highlighted that only official company communication channels should be utilized for accurate information. 

The Star Entertainment Group announced earlier that external parties have indeed expressed interest in acquiring the company. However, The Star noted that there were no substantive discussions in connection with the proposal. 

Still, The Star provided information that part of the consortium that expressed interest was a local partner affiliated with Hard Rock International.

After the initial announcement from The Star, the company shares surged but following the statement dismissing the association of Hard Rock International with any potential bid drove the share price down again.  

The Star Faces Scrutiny: Second Probe Into Casino License Suitability

The Star has been embroiled in a long-lasting investigation into violations of anti-money laundering rules and ties with Asian junket operators. The company is still under scrutiny from Australian gambling regulators.

The company is currently facing a second investigation into its suitability to hold a New South Wales casino license. This is due to governance and compliance issues, which were uncovered during the first Bell report. The initial investigation into The Star led to many implications for the gambling operator, including a record fine.

Now the company has six months to prove its suitability and prevent permanent license loss. According to plans, The Star will implement remediation measures. The Bell Two inquiry will focus on financial obligations and remediation efforts with hearings held in camera. The results will help the New South Wales Independent Casino Commission (NICC) make a decision regarding the future of the embattled operator.

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Amid swirling rumors of Bruno Mars accumulating massive gambling debts, MGM Resorts has stepped forward to quash the speculations, asserting that the acclaimed singer-songwriter is not indebted to the casino giant.

MGM Resorts Clarifies Bruno Mars’ Financial Status

Responding to recent claims from media outlet NewsNation, MGM Resorts dismissed reports suggesting that Mars owed up to $50 million in gambling losses. The company, in a statement issued March 18, emphasized its enduring partnership with Mars, labeling any insinuation of financial indebtedness as “completely false.”

MGM Resorts commented to The Las Vegas Review-Journal that they were proud of their relationship with Bruno Mars, emphasizing that his brand of entertainment, from his energetic performances at Dolby Live at Park MGM to the newly opened Pinky Ring lounge at Bellagio, has a global appeal.

The statement elaborated that the partnership between MGM and Mars is founded on mutual respect. It asserted that any speculation suggesting otherwise is unfounded, reiterating that Mars does not owe any debt to MGM. 

The rumors, originating from an unnamed source cited by NewsNation, alleged that Mars was using earnings from his performances to offset substantial gambling losses. The source purported that Mars earns around $90 million annually from his residency deals with MGM, but after tax deductions, his net earnings amount to roughly $1.5 million per show.

Contrary to these claims, MGM Resorts firmly denies Mars’ indebtedness, emphasizing that his collaboration with the company spans multiple ventures, including his ongoing residency at Park MGM and the recent partnership on the Pinky Ring lounge at Bellagio.

Bruno Mars’ Influence Remains Strong Amidst Casino Speculations in Las Vegas

Mars, whose affinity for the casino tables has been previously noted, has not publicly addressed the recent rumors. However, past interviews have showcased his candidness about gambling experiences, highlighting the lessons learned from occasional losses.

The Grammy-winning artist has been a fixture in the Las Vegas entertainment scene since 2016, captivating audiences with his chart-topping hits and dynamic stage presence. His enduring partnership with MGM Resorts underscores his significant contribution to the city’s vibrant entertainment landscape.

As mentioned above Bruno Mars recently launched The Pinky Ring at Bellagio Resort & Casino. The new venture debuted with an exclusive party and performance, attended by celebrities like Lady Gaga and T-Pain, featuring surprise acts from Janelle Monáe and others.

The venue, curated by Bruno himself, promises an immersive experience in timeless glamour and remarkable artistry, with The Hooligans as the resident house band for the initial weeks.As MGM Resorts and Bruno Mars continue to collaborate on innovative ventures, the casino giant reaffirms its commitment to providing unparalleled entertainment experiences for its patrons, dispelling any notions of financial discord with the celebrated performer.

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MGM China has categorically dismissed rumors suggesting that its co-chairperson and executive director, Pansy Ho Chiu King, has any intention of reducing her shareholding in the company. Reports from Hong Kong media had suggested that up to 380 million shares in MGM China were recently shifted into the Central Clearing and Settlement System (CCASS), triggering speculation about Ho’s possible divestment.

MGM China Maintains Pansy Ho’s Steadfast Position

The share rearrangement occurred in two stages – first in mid-October through Standard Chartered Bank (Hong Kong) and later in mid-November via BNP Paribas. Contrary to market speculation, MGM China clarified that these transactions were part of previously arranged dealings between Ho and her custodian banks and did not signify any sell-off, reported Macau Business.

MGM China’s financial performance for the third quarter of 2023 showcased resilience, with net revenue reaching $813 million, marking a notable 10% increase compared to the same period in 2019, pre-pandemic. The adjusted property EBITDAR also witnessed a robust ascent by 23% from the second quarter, amounting to $226 million. Analysts at JP Morgan Securities (Asia Pacific) noted that the figures exceeded expectations by 3%, primarily driven by gains in the company’s share of the mass market.

Pansy Ho, the eldest daughter of Macau casino patriarch Stanley Ho, is a significant shareholder in MGM China, holding the entirety of her equity interest, which recently amounted to 380 million shares. Although Ho has a track record of reducing her stake in MGM Resorts International since 2019, she has consistently maintained her position in MGM China.

Market Fluctuations Pose Hurdles for Pansy Ho’s Potential Divestment

Market observers suggested that even if Ho were contemplating a sale, the current climate may not be conducive. Macau casino stocks have recently experienced a dip, with all but MGM China touching their lowest levels since early 2022. This could potentially dissuade Ho from any significant divestment, given her historical aversion to selling low.

At the same time, investors from Asia and beyond are increasingly turning to Macau casino debt, viewing it as a more lucrative and potentially less risky option than corporate debt or shares. The recovering gross gaming revenue in Macau has attracted attention, signaling a brighter future for the region. 

Despite Macau stock prices struggling to reach pre-pandemic levels, investing in bonds is seen as a more secure option, with trust in Macau casino bonds leading to credit rating upgrades for companies like Sands China and Melco. The appeal also stems from Asia’s low default rates and a decrease in overall bond market supply due to the departure of many Chinese firms. 

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Failed merger negotiations may be behind DraftKings’ last-minute bid to acquire PointsBet USA and derail an already negotiated deal with Fanatics, according to a media report.

Block Fanatics from New York Entry

DraftKings chief executive officer Jason Robins is determined to “level the score” with Fanatics boss Michael Rubin, still holding a grudge after Rubin walked away from an advanced $48 billion merger negotiations in 2021, The New York Post claims based on unnamed sources.

DraftKings submitted a $195 million last-minute bid to acquire PointsBet USA, derailing the $150 million deal reached a month earlier with Fanatics, as well as Rubin’s ambition to establish Fanatics as a major player in the sports betting space.

“DraftKings already has scale,” claims one of the media sources, explaining that the rationale behind outbidding Fanatics is to block Fanatics from acquiring PointsBet’s online sports betting license in New York.

“If you want to be a player you have to be here,” the source added in terms of market presence in New York as “it is the largest state [with legal sports betting at the moment as] California, Florida and Texas are not offering sports betting.”

Australian-based PointsBet holds one of nine online sports betting licenses in New York and the state has no plans to increase the number of available licenses any time soon.

Speaking to CNBC earlier this month, Rubin said that DraftKings’ bid was more about derailing Fanatics’ bid and delaying its “ability to enter the market,” rather than improving DraftKings’ market position and size, showing that DraftKings is seriously concerned with Fanatics as a potential competitor.

As the operator with the second-largest market share nationwide, DraftKings has no other competitor even close to its 29% market share, and PointsBet’s US assets would not help it significantly cut the distance with the leader, FanDuel with 45%.

No Personal Motives Behind the Bid

Representatives from Fanatics declined to comment on the story when asked by the reporting media, while a DraftKings spokesman dismissed claims that there are any other motives besides the potential for “significant synergies and financial rationale,” as well as “interesting product and technology capabilities.”

To suggest that there is an ulterior motive that is personal and not business related is irresponsible and not grounded in reality.

DraftKings spokesperson

Acquiring PointsBet USA would be of significant importance to Fanatics as it would open up cross-market opportunities for its customer base buying official sports team gear, on top of the access to the market in New York, while for DraftKings the acquisition brings potential risks.

PointsBet is reportedly looking into the proposal and will likely force a “hell or high water” merger agreement, meaning a deal with or without regulatory approvals, while the proposal tabled by DraftKings is subject to acquiring regulatory approvals.

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