Inside Asian Gaming

Oct 2007 | INSIDE ASIAN GAMING 45 Briefs for public policy reasons, so long as they treated foreign and domes- tic companies the same way. The United States has argued it never intended to include gam- bling as part of the market-opening commitments it made in the 1994 Uruguay Round trade pact. But having lost the case, it announced in May it would exercise a rarely used right under WTO rules to clarify that its commitments did not extend to gambling. Making that change opened the door for trading partners to de- mand compensation in the form of increased access to some other US services sector. US officials initially said they did not believe compensation was warranted, but have been in talks with seven WTO members—India, the European Union, Japan, Costa Rica, Macao, Canada and Austra- lia—on a compensation package. Antigua is pressing for the right to slap US$3.4 billion in“cross re- taliation” on the United States by suspending copyright protections on American movies, music and software. Slovenia Set for Gaming Legislation Change Jan Jones, a senior executive of US gaming giant Harrah’s En- tertainment, said she expected Slovenian gaming legislation to be amended before the year is out, Slovene Press Agency reported. The changes are crucial for realizing the 750 million euro gaming resort, planned by Harrah’s and Slovenian gaming company Hit in theWest- ern region of Gorisko. The changes, unveiled by the Finance Ministry in July, allow for- eign companies to hold up to 49% in Slovenian gaming ventures and progressively lower taxes on revenues: revenues up to 110 million euros will be subject to a 32% taxation rate, which will drop to 14% for 110-150 million euros and to 8% for revenues in excess of 150 million euros. Station Sale Clears Obstacle The US$5.4 billion management-led buyout of Station Casinos took another step forward in October with the state Gaming Con- trol Board’s approving the company’s purchase by a joint-venture partnership. Station Casinos is being bought by Fertitta Colony Partners, a partnership between members of the gaming company’s found- ing family and Los Angeles-based real estate investment firm Colony Capital. Station Casinos will be owned through private stock held primar- ily by the Fertitta family and a Colony Capital investment fund, with the gaming company’s executives and senior management holding minor ownership shares once the deal closes. The application, which was approved by all three board mem- bers in Carson City, will be considered for final approval by the Ne- vada Gaming Commission on October 18 in Carson City. The deal also needs approval of the National Indian Gaming Commission.The commission has not set a date to consider the deal. Gaming Control Board Chairman Dennis Neilander said approv- ing the buyout was an easy call because of the board’s familiarity with the parties involved and because all principals are already li- censed in the state. The partnership will be controlled by Station Casinos Chairman and Chief Executive Officer Frank Fertitta III, company Vice Chairman and President Lorenzo Fertitta and Tom Barrack, founder, chairman and chief executive officer of Colony Capital. Colony Capital was first licensed in Nevada in 1997 after the firm bought Harveys Lake Tahoe. The firm sold Harveys to Harrah’s En- tertainment in 2000, and bought the Las Vegas Hilton for US$280 million in 2004. MGM’s Mega Atlantic City Plans MGM Mirage Inc. plans to develop a mini-city of gambling, hotel towers and luxury condominiums that would dramatically redefine the Atlantic City skyline. The estimated US$4.5-5.5 billion project would mimic the com- pany’s huge US$7.4 billion CityCenter project under construction on the Las Vegas Strip, although on a smaller scale, according to people familiar with the plans. MGM envisions a casino complex featuring three hotel towers of 1,000 rooms each and high-end retail on par with the acclaimed Forum Shops at Caesars Palace in Las Vegas. In addition to its mam- moth size, what would distinguish the MGM project from other At- lantic City casinos are plans for posh condos that would start at US$1 million and top out between US$5-$6 million, officials said. Despite growing optimism over MGM’s project, the company’s track record in Atlantic City includes unfulfilled promises for two other casinos within the past decade. MGM is flush with cash for new projects, thanks in part to a US$2.7 billion investment in the CityCenter project by fi- nancing partner Dubai World, an entity of the United Arab Emirates government. Dubai World also has agreed to buy as much as US$2.4 billion of MGM’s common stock. Belgium Takes Unibet to Task Belgium’s Gaming Commission took international gamblingWeb site Unibet.com to task over allowing gamblers to try their luck and wager on when the country’s political crisis might come to an end, according to a report in Business Week . The commission said it filed a complaint with the Brussels pros- ecutors office claiming Unibet’s game of chance on when Belgium’s deeply divided political leaders will form a new national government was illegal under national law. Callu said that under Belgian law people are not allowed to wager on such events, with exceptions given to sports games or horse races.