Inside Asian Gaming

queaky-clean Singapore is on track to unveil the world’s most expensive casino-re- sort in 2009. Its low gaming tax rate and es- tablished international air connectivity could see the city long renowned for its ban on chewing gum emerge as one of Asia’s lead- ing gaming and convention hubs. Las Vegas Sands Corp (LVS) won the bid to build and operate a casino at Marina Bay, the first of Singapore’s two planned casino- centered integrated resorts (IRs), in May last year. The ever-efficient city-state reversed its four-decade ban on casino gaming in April 2005, and released its draft casino regulation bill six months later, paving the way for the opening of bids for the Marina Bay site in No- vember that year. The selection of LVS surprised many who believed that companies submitting joint bids with government-linked local property developers were much more likely to win. LVS’ Vegas-based rivals, Harrah’s Entertain- ment Inc and MGMMirage, had both teamed up with partners affiliated with Singapore state investor Temasek Holdings on their bids—Harrah’s with Keppel Land and MGM Mirage with CapitaLand.The odds of LVS win- ning the bid were seen as having plunged after the withdrawal of its proposed equity partner, Singapore property firm City Devel- opments Ltd. By choosing LVS over one of the Temas- ek-linked bidders, Merrill Lynch analyst Sean Monaghan said the Singapore government showed a sense of accountability missing in many other nations in both Asia and the rest of the world, where lesser bidders are often able to secure contracts by marshalling po- litical influence. The Singapore government had listed the selection criteria for the operator of the Marina Bay resort as knowledge of Asia, a proven track record in the meetings, incen- tives, conventions and exhibitions (MICE) business, experience developing proper- ties of the scale and quality of the planned Marina Bay resort, a track record in attract- ing all segments of visitors, and no prob- lems with probity. Monaghan was among the minority of analysts who realized the Singapore govern- ment would choose the bidder offering the greatest long-term value to Singapore than one with a Temasek-link, and ahead of the announcement had tipped LVS as the favor- ite according to these criteria. A MICE edge Las Vegas Sands Chairman Sheldon Adel- son highlighted his company’s edge in the Marina Bay bidding in April 2006, when he said that conventions, rather than gambling machines, will be the biggest tourist draw for Singapore. Adelson founded the Computer Dealers Exposition (Comdex), and made it the most successful trade show the world has ever seen—during its peak in the 1990s, Comdex drew 2,480 exhibitors and 212,000 attendees each year to Las Vegas. S Destination Singapore Despite distractions, increased construction costs and ongoing concerns about long-term success, both Las Vegas Sands and Genting International have progressed on their massive US$3 billion resort projects in Singapore 28