It was always considered an outside bet but South African Peermont Global yesterday announced that it will not enter a bid for either Integrated Resort in Singapore. Citing a thorough risk analysis as the reason behind the decision, Peermont admitted that there would have been little chance of it winning the tender to develop a casino resort. Ernie Joubert, Peermont Global CEO, said the company was disappointed to be withdrawing from the process but that it was the correct decision for the company. Analysts predict that US bidders Harrah’s, MGM Mirage and Las Vegas Sands will have the edge on competition for selection.

The investment costs for the Singapore casino project could be as high as US$4 billion, and the Singapore Government’s restrictions on the casino operation is likely to adversely affect gaming revenue. The casino entry fee, whilst not huge at around US$59, will deter much of the local market and eliminate grind action, as the Government intends. The size of the casino has also been limited in order to ensure that the focus of the resort is on entertainment and convention business and not on gambling.

Last April Peermont described itself as delighted to have qualified in the first stage of the bidding for participation in the Request for Proposal (RFP). The company was confident that its proposal was for ‘a truly spectacular’ Integrated Resort concept, and that Singapore was part of Peermont’s vision of becoming a leading international hotel and gaming leisure group. After withdrawing from the bidding process, Ernie Joubert confirmed that the company would now concentrate on expanding its existing resorts in South Africa and Botswana and look for further growth opportunities there and internationally. (E-11.17.05)

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