MANILA, Feb 21 – A casino operator run by Australian billionaire James Packer and the son of Macau gambling tycoon Stanley Ho has expressed interest in investing in a US$1 billion (RM3.02 billion) Manila casino project, the Philippine gambling regulator said today.
Macau-based Melco Crown Entertainment Ltd was “very interested” in the project, Cristino Naguiat, chairman of the state-owned Philippine Amusement & Gaming Corp (Pagcor), said after meeting with Melco officials last week in Manila.
He said Hong Kong-listed Galaxy Entertainment Group Ltd was also interested in a project in the more than 100-hectare Entertainment City near Manila Bay, construction of which is to begin late next year.
Pagcor, the country’s largest casino operator, awarded four licences in 2008 and 2009 to operate casino resorts in the Manila Bay area. Pagcor expects the resorts to generate annual gambling revenue of as much as US$11 billion after five years of operation, overtaking Las Vegas.
Pagcor requires a minimum investment of US$1 billion from any firm awarded a gaming licence, Naguiat said.
CASINO RESORTS
Naguiat did not know if Melco was looking for local partners, but said Galaxy was in talks with local groups and “could be” in discussions with local property and leisure firm Belle Corp for a partnership.
Belle, controlled by the country’s richest man Henry Sy, was looking to lease at least 10 hectares of land from Pagcor for its second casino project in Entertainment City. The project could also cost US$1 billion.
Belle is building an integrated entertainment resort complex called Belle Grande Manila Bay, which features a 30,000-square-metre casino, within the Entertainment City.
Three other groups are pursuing developments in Entertainment City, the biggest being the US$2 billion casino-hotel project being built by a unit of Japan’s Universal Entertainment Corp set for completion in 2014.
The other developers are Bloomsbury Investments and the joint venture between Genting Hong Kong Ltd and Alliance Global Group.
Naguiat said Universal Entertainment remained interested in pursuing its Philippine project despite a much-publicised fight between Japanese gaming mogul Kazuo Okada and his former business partner, Las Vegas casino tycoon Steve Wynn.
Okada owns Universal Entertainment and Wynn is chief executive at Wynn Resorts Ltd. Both claim the other made improper payments to win favour in their respective Macau and Philippines markets.
“I don’t know what’s going on between Mr Okada and Mr Wynn. We have to be outside that fight,” Naguiat said. “From the way I look at it, there was nothing wrong with our transactions with Mr Okada.”
Naguiat said he had discussed the issue with Okada, who promised to pursue his Philippine project. “No change in plans, everything will push through.”
Pagcor grew its total revenues by 16.5 per cent to a record US$851 million last year. It expects revenues to grow at least 16 per cent this year. – Reuters
