The Straits Times , 21 May 04

US casino giant wants stake in S'pore
Las Vegas Sands, which opened a casino in Macau recently, is willing to fork out US$2 billion for a super-casino here
by Kelvin Wong

FLUSH from the glitzy opening of its US$240 million (S$410 million) casino in Macau this week, Las Vegas Sands Inc wants to take a gamble on Singapore.

A spokesman for the company, the parent of the sprawling Venetian Casino Resort in the Las Vegas strip, said yesterday that it is 'very interested' in developing a casino here and that it has been in talks with the authorities for the last two months.

It is willing to put US$2 billion (S$3.4 billion) on the table for a super-casino, the same amount it is currently pumping into a second venture in Macau to build a strip of resorts in Cotai.

An investment of this magnitude could result in a full-fledged development just like its flagship casino in Las Vegas, which has 4,000 suites, 18 restaurants, a shopping mall and a convention centre.

While prepared to come on its own steam, Las Vegas Sands said it is also open to just taking an equity stake in the venture or teaming up with an appropriate local partner. The actual scale of a casino here, assuming things pan out, will depend on what the Government wants.

'We'll build whatever the authorities feel they're comfortable with,' said the company's president and chief operating officer, Mr William Weidner, who was in town yesterday for a hotel investment conference.

Las Vegas Sands is the latest in a string of gaming giants which are contemplating placing a stake here after the Government announced in March that it is open to the idea of having a casino.

Two of them, according to media reports, are MGM-Mirage, which controls the casinos MGM-Grand and the upmarket Bellagio in Las Vegas, and Caesars Entertainment of Caesar's Palace fame.

It is understood that a Singapore delegation is currently in Las Vegas studying how casinos there are run, but the Trade and Industry Ministry could not confirm this by press time.

The proposed casino is part of a planned resort development at Sentosa Cove and the nearby Southern Islands. It will likely target tourists who are high rollers and put in place some form of restriction on less well-off Singaporeans.

Keeping out the mass market will not hurt the casino, said Mr Weidner, adding that London casinos have the same approach. 'Given the wealth of Singaporeans, the diversified business base here and the value of the country's tourism assets, Singapore would be a natural place for a casino,' he said. 'It could choose whatever style it's comfortable with and still succeed.' A casino here will enable the company to tap into regional markets, such as India, Indonesia, Thailand and Vietnam, he said.

On its part, Singapore stands to gain from an increase in visitors because of the spillover effects into its other tourism sectors, including the conventions and retail industries.

As a case in point, almost 80 per cent of the Venetian Casino Resort's revenue comes from non-gaming activities, like rooms, retail and food, said Mr Weidner.