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Las
Vegas Business Press, 23 Apr 04
The siren song of Singapore
By Steven Mihailovich StevenM@LVPress.com
The Asian city-state of Singapore is seriously considering reversing
an age-old ban to approve the construction of a casino that would
generate revenues from $235-$335 million and create 1,000 jobs. The
prospect was raised last month during parliamentary debates on the
budget. Government ministers broached the possibility of allowing
gaming at a planned 1,235-acre resort and residential development
on the islet of Sentosa.
Although such statements are routinely floated in the American political
and business arena to gauge public reaction, the possibility of a
new gaming jurisdiction is very serious in a culture that does not
speak until it is ready to act.
Despite the massive potential of a casino in the financial, commercial
and shipping hub of Southeast Asia, U.S. casino operators could be
missing the boat as others line up knowing the government will act
quickly once the legalization question is resolved.
"Based on how Singapore approaches projects and potential legislation,
they are definitely serious about looking at the viability of gaming,"
says Jonathan Galaviz, president of the Singapore Association of Nevada,
a non-profit group promoting economic and cultural ties between the
two states. "If they approved it, they would proceed on development
of the project in short order." Aside from its own success, which
includes an estimated economic growth rate of 7.1 percent in 2003,
Singapore sits in the heart of Southeast Asia region, with its 600
million people creating a combined economy estimated to reach almost
$1,000 billion this year. With the gaming facilities of Macau more
than 1,500 miles away, Singaporeans only other option is Ginteng,
Malaysia.
The Singapore government is considering gaming on Sentosa to boost
its position as a tourist destination. Deputy Prime Minister Lee Hsien
Loong had commented that restrictions on foreign ownership of land
would need to be lifted and in March, Trade and Industry Minister
George Yeo raised the possibility of gaming to sharpen Sentosa'a appeal,
according to an Agence France Presse report. "We are keeping an open
mind on what to have in this development, including the possibility
of having a casino," the agency quoted Yeo.
According to Galaviz, Yeo proposed further research on the impact
and benefits of allowing gaming on the island. "In Singapore, once
they make a decision and commit to something, they're going to do
it," he adds.
The decision will depend on the level of resistance from the morally
conservative society. Although Singapore has long rejected gaming
and other vices, the country has also been practical. For instance,
while frowning on prostitution, the service is allowed in a defined
area and is strictly regulated.
"Singapore is already wealthy, and it could be [perceived] as degrading
itself by allowing gaming," Galaviz says. "It is more a cultural identity
issue than economic." The cultural and moral question of casino gambling
could, however, be minor in a country that already allows lotteries
and sports betting, especially for a government seeking to enhance
revenues through gaming and thereby keeping taxes low for other businesses.
Locals may not be allowed to gamble at the resort designed for foreign
tourists.
"Singapore sees Las Vegas as a model because of our ability to use
the gaming industry to convert Las Vegas into a true, full-blown,
cosmopolitan city," Galaviz says. While Las Vegas serves as the prototype,
Nevada companies are not the leading contenders. American companies
are eyeing places like Macau and the United Kingdom, British gaming
operators have already made the trek to Singapore, a former colony,
to make the relationships so crucial to doing business in that part
of the world, according to Galaviz.
If the government does not get popular support, the topic could drop
off the horizon for years. If approved, however, the Singapore Parliament
could vote on the matter as soon as the third quarter and request
for proposals could be made as early as the first quarter next year.
"Singapore is more interested than it has ever been," Galaviz says.
"It is part of a total government revamp in reinventing Singapore
as a tourist hub. The gaming community here should start sending senior
level people to Singapore as soon as possible to advocate the Las
Vegas model. The sooner they start, the better off they'll be when
Singapore decides." |
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