Last week the four contenders for the Marina Bay casino licence met with Singapore officials to discuss their proposals. Afterwards it was revealed that a second presentation scheduled for early next month may not take place, leading to speculation that the Singapore government may have made its choice. Analysts are backing the two projects aligned with Singapore government–linked companies (MGM Mirage and CapitaLand; Harrah’s Entertainment and Keppel Land), persuaded that the government would prefer to maintain greater influence in casino operations.

The Singapore Tourism Board will announce the winner in the bidding process by mid-2006. Later this month on 28 April the tender for Singapore’s second casino resort will be launched with the deadline for applications set as 10 October. The operator awarded with the Marina Bay licence will not be able to bid for Sentosa Island, but the losing bidders can apply. Both Harrah’s and Genting International are known to be preparing bids for both sites. The winner of the licence for Sentosa Island will be announced before the end of the year.

For Singapore, often described as a ‘nanny’ state, the advent of casinos will follow over 40 years of prohibition. The government has made it clear that the two Singapore casinos must be just part of an integrated resort of iconic design able to attract many tourists. Restrictive regulations are in place to limit possible detrimental social impact on the country’s citizens. The high cost, an estimated US$3 billion, and the gaming regulations that could limit revenue caused several companies to drop out of the bidding contest. Those that remain see long-term advantages for their investment. (E-04.12.06)

© Copyright 2006 CasinoCompendium



>>> return to archives
>>> return to frontpage