Inside Asian Gaming

29 Av. da Praia Grande, No. 886, Centro Com. “Iat Teng Hou” ﹝南灣一定好商業中心﹞ , Macau. Tel: 715070 VS has committed to investing US$3.2 billion in the Marina Bay Sands, which is scheduled to open in 2009, becoming the world’s most expensive gaming resort. LVS’ Singapore property will feature 2,500 hotel rooms, a one million square foot retail mall, and a 200,000 square foot arts and sciences museum. Most importantly, Marina Bay Sands will feature 1.2 million square feet of convention and exhibition space, which in addition to the 1.2 million square feet of expo space LVS is developing at Venetian Macau,will give the company a combined expo capacity greater than most countries in the region. With LVS Chairman Sheldon Adelson’s track record in cultivating hugely popular trade shows, the company could quickly gain a significant lead in tapping Asia’s huge trade show potential.LVS could perhaps even drive a boom in the region’s convention and exhi- bition industry if the supply-creates-demand theory posited for gaming in Macau also ap- plies to trade shows in Asia. By winning the bid for Singapore’s first integrated resort (IR), LVS will also gain an unrivalled network of casino properties in Asia and Las Vegas, enabling it to combine its casino marketing efforts between Macau, Las Vegas and Singapore. This will boost its ability to attract players, and perhaps more importantly, to influence junket operators. No other casino operator will – for the time being at least – operate such a strategic net- work of properties, giving the reputedly wily LVS unprecedented negotiating power over junket operators. LVS is also expected to aggressively pursue other casino opportunities as they emerge in Asia – perhaps in Thailand and Japan. This will further add to the company’s unique position relative to companies lack- ing in regional diversification. The Second Site Singapore has formally invited bids for the second of its two planned IRs, setting a price of S$605 million (US$380 million) for the 49 Bid-Winning Boon Las Vegas Sands Corp (LVS) looks set to secure a dominant position in Asia’s burgeoning casino and trade show industries after being awarded a 30-year concession to build and operate Singapore’s first casino-centred integrated resort (IR) along the downtown Marina Bayfront hectare site on the resort island of Sentosa – the 20.6 hectare site at the downtown Ma- rina Bay will cost S$1.2 billion (US$754 mil- lion). While the Marina Bay integrated resort will focus on the meetings, incentives, con- ventions and exhibitions (MICE) business, Singapore has said that it wants the Sentosa resort to focus on providing family-friendly leisure attractions. The Singapore Tourism Board said bids for the Sentosa site, due on October 10, will be judged mainly on their tourism appeal – which receives a 45% weighting in the pro- cess of deciding the winning Sentosa bidder. Architecture, design and concept excellence hold a 25% weighting, the amount invested another 20%, while the strength of the con- sortium will have a 10% influence on which group wins the Sentosa bid. Genting International and its sister com- pany Star Cruises are seen as frontrunners for the Sentosa site, especially now that it has become clear the government regards the capability of bidders as more important than their Temasek-linked status (following the selection of LVS, which has no Temasek links, at Marina Bay). The Genting syndicate has teamed up with Universal Studios, which is seen as bringing strong tourism-appeal to its Sentosa bid. Competition for the Sentosa site also looks set to be less intense than for Marina Bay. Apart from the Genting syndicate, Baha- mas-based Kerzner International, in partner- ship with Temasek-affiliated CapitaLand has announced it would bid for the Sentosa site,as will privately-owned resorts developer Eighth Wonder with Starwood Hotels and Resorts and Isle of Capri Casinos Inc.Meanwhile,South Africa’s Sun International is undecided and the participation of the Keppel Land-Harrah’s consortium in Sentosa appears increasingly in doubt after it announced it would only decide “in due course” whether to proceed with the Sentosa bid.The winner of the Sentosa bid will be announced this year. L Back view of Marina Bay Sands