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The
Straits Times, 29 Nov 04
Casino resort idea: Big players show
keen interest
By Glenys Sim
Flurry of visits by operators as many expect a call for proposals
soon
EVEN as the Government remains undecided about the casino, gaming
operators and consultants have been flying in and out of town laying
the groundwork for landing the multi-million-dollar integrated resort
jackpot.
It started as a trickle in March when the idea of a casino was first
mooted, but has risen in volume recently on the expectation that in
the coming weeks, investors will be asked to submit proposals. Of
late, top executives from these companies have been meeting local
companies and officials, including Prime Minister Lee Hsien Loong.
At least two major consultancy groups have also offered their services
to the Government and an Australian supplier of gambling equipment
has also come a-knocking, The Straits Times understands.
One of the operators is Harrah's Entertainment, which owns 28 casinos
across the United States. It has been raising its profile here with
several visits by its top people. A senior executive of the gaming
giant met PM Lee this month as part of the US-Asean Business Council
delegation. This week, Harrah's head honcho Gary Loveman will be in
town to look for Singapore joint venture partners, The Straits Times
understands. The company, valued at US$4.3 billion (S$7.1 billion)
on the New York Stock Exchange, hopes to tie up with developers here
who can build the integrated resort with a casino that Singapore is
mulling over.
Other big players, including MGM-Mirage and Las Vegas Sands, also
met government officials when a Singapore delegation went to Las Vegas
in May. Earlier this month, MGM-Mirage held a glitzy private party
here for casino high-rollers. Its Bellagio hotel and casino in Las
Vegas is one model the Government may adopt. Las Vegas Sands, the
only one of the three already in Asia with its Sands Macau casino,
has indicated it is willing to put in US$2 billion on a go-ahead.
However, companies have been largely tight-lipped about their visits
and plans, partly to keep rivals in the dark and also because the
casino has become such a lightning rod issue for conservative Singaporeans,
who have kept up their lobby against the idea. The Government floated
the resort-plus-casino idea as a way to meet rising regional competition
for tourists. Others which have expressed interest in the proposed
casino are Macau gambling tycoon Stanley Ho's Sociedade De Jogos De
Macau, Malaysia's Genting Berhad, Vienna-based Casinos Austria International
(CAI) and the Bahamas' Kerzner International
CAI's chief executive, Mr Frank McFadden, said on a visit here he
is 'interested in a Singapore project' but maintained his company
is 'keeping a low profile'. Kerzner, whose Atlantis family-style mega-resort
cum casino is another model the Government is considering, recently
received wide coverage after taking members of the Singapore media
to its Caribbean property. Kerzner CEO Butch Kerzner said he is waiting
for the Government to call for proposals.
One of the two groups that submitted proposals in September to consult
for the Government is Ernst & Young. Mr Scott Fisher, managing director
of US consultancy The Innovation Group, which has tied up with Ernst
& Young, said it hopes to write the Government's 'request for proposal'
from operators on market potential, tax structure and regulatory frameworks.
With the Government not giving many clues on its decision, when -
and indeed whether - those opportunities will arise is still anyone's
wager. |
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