Some experts in the know just could not see a Stanley Ho casino in Singapore, and when the Chinese mogul, who up to a few years ago had the gambling monopoly in Macao, teamed up with the Aussie giant Kerry Packer to bid for a piece of the action in the island country, their project still seemed to lack the wherewithal needed to undertake such a financially demanding enterprise. Now, along with Las Vegas' Steve Wynn, and the South African operators Peermont, the Ho consortium bid for a Singapore casino is over.

In a show of financial muscle to intimidate the American prospectors Harrah’s Entertainment Inc, MGM Mirage and Las Vegas Sands Corp., and Sol Kerzner's Kerzner International, Malaysia's Genting Bhd has decided to up the ante by going local and listing on the Singapore stock exchange. December's Genting IPO managed to raise around US$482 million (RM794 million), which combined with the group’s consolidated profits and cash hoard of over US$3.3 billion (RM5.5 billion), enables the company to flaunt enough cash to build at least one casino in the highest gambling stakes ever.

Singapore lifted its forty year ban on casinos last April and will close the tender for the first casino licence in Downtown Singapore on March 26, and the government is expected to announce the winning bid sometime in the middle of the year. As Genting has entered into a partnership with Universal Studios to build a theme park on Sentosa Island, which is where the second casino will be sited, it is fair to assume that they are placed in pole position to get this licence, especially as unsuccessful bidders for the downtown licence will be able to bid for Singapore’s second casino. But Genting will not have a free ride, because Kerzner will use all his ammo if he goes for the Sentosa Island licence, and we all know what the "Sun King" of South Africa can do.

Speaking to one of the MGM Mirage executives last September, high cost was the main argument against bidding for a Singapore licence. As these Las Vegas Strip giants have so far stayed in the race along with Harrah's, the world's biggest casino company, and Sands, Macao's major operators, the high cost card is not a convincing argument against the long-term projected riches from a mega casino operation in South East Asia. So, the first licence is likely to go to one of the three American operators. Despite predictions reported at the end of last year that Harrah's would be getting both licences in Singapore, and having seen how Sands has made it pay big time in Macao, is it the time for MGM Mirage in Singapore?
(E-01.04.06)

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