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NewsAsia , 8 Dec 04
Harrah's Ent ready to invest US$1b
for integrated resort-casino
by Wong Siew Ying
SINGAPORE : Casino operator Harrah's Entertainment is prepared to
invest US$1 billion in Singapore for an integrated resort-casino.
And while casino operators are keeping their cards close to their
chest about concept plans, many also say Singapore will have an upper
hand if it has its first roll of the dice, especially with neighbouring
countries also considering building a casino.
Harrah's Entertainment owns 28 casinos in 12 American states, and
it is in talks with some Singaporean companies about the casino project.
It currently hires 48,000 employees and had US$4.8 billon in revenue
last year - nearly half from gaming operations. And with Hong Kong,
Thailand and China all planning to vie for a share of the gaming dollar,
operators believe Singapore will have an advantage if it gets a headstart
in the casino development.
Dr Gary W. Loveman, CEO of Harrah's Entertainment, Inc, said: "Harrah's
would like very much for Singapore to be the centre of our holding
operations in Asia because of the nature of the community here, the
way the government establishes itself, we think it is ideally suited
to the way we do our business. "I think it is likely that it is going
to be in excess of US$1 billion, again it is very hard to be specific
in the absence of parameters, but a figure in excess of US$1 billion
is likely."
Kerzner International, which operates the Atlantis resort-casino in
the Bahamas, believes Singapore has the right infrastructure and resources.
Mr Butch Kerzner, CEO of Kerzner International, said: "Gambling is
going to be a commodity and you have it now in Macau, Korea, and it
is going to go on and on. "However, it is an opportunity for the first
destination to develop something that is totally integrated, kind
of magnet to get a real jump start over everybody else."
While a casino is not the main focus in an integrated resort, operators
say revenue from casino operations can help fund other non-gaming
aspects of the facility. Others say they may pull out if a casino
is not in the offing. Dr Loveman added: "We are a casino operator
company, so it is unlikely that we would be involved in a business
if we thought that there would never be a casino. "If the government
were to say that we will start with a certain kind of entertainment
offering with an eye of having a casino in it sometime in the forseeable
future, that's something we will take a look."
Analysts also say an integrated resort with a casino is the best bet
going forward. Mr Song Seng Wun, Economist at GK Goh Research, said:
"Singapore itself does not have the critical mass that can generate
a theme park of that magnitude that can anchor and be profitable."
The Singapore government will make a request for concepts in the coming
week or so and will call for detailed proposals early next year after
studying the concept plans. - CNA
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