It surprised many to hear that the Australian media and gaming group Publishing and Broadcasting Ltd (PBL) through its PBL Melco joint venture had joined the Eighth Wonder Consortium in a bid to develop Singapore’s Sentosa Island integrated resort casino. The amount of the bid was also surprising, the sum of around US$3.5 billion believed to exceed the value of the bids made by Genting International and Kerzner International. Las Vegas Sands is committing around US$3 billion to its development at Marina Bay.

Some of the surprise was due to the fact that PBL Melco previously withdrew from the Marina Bay bidding process on the grounds that the returns would be insufficient to justify the capital costs. The Singapore Government’s regulatory restrictions on gambling will make it harder for operators to generate revenue. Eighth Wonder is a privately held Las Vegas firm led by Chairman Mark Advent. PBL Melco has a 24.5% interest in the Eighth Wonder bid. Isle of Capri, the other member of the consortium and with a 13.8% stake, has said the addition of PBL Melco to the equity ownership agreement will bring significant Asian market gaming and hospitality expertise to the project.

Melco International Development Limited was founded in 1910 in Hong Kong and its present Chairman and CEO is Lawrence Ho, son of the casino magnate Stanley Ho. The other half of the joint venture, Australia’s PBL, is run by James Packer, son of the legendary Kerry Packer. Isle of Capri Casinos Inc, operator of 13 casinos around the US and in the UK and The Bahamas, has entered into a revenue sharing agreement. Should the Eighth Wonder bid be successful, Melco PBL will manage the casino and associated casino amenities. Isle of Capri will receive a payment equal to 2% of casino gross revenue for a 15-year period. (E-10.11.06)

© Copyright 2006 CasinoCompendium



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