Inside Asian Gaming

INSIDE ASIAN GAMING | October 2008 Jury Clear Way for Plaza in Vegas On October 6,a Las Vegas jury ruled that the owners of the famed Plaza Hotel in New York can use the Plaza name on a proposed US$5 billion casino resort on the Vegas Strip, despite the existence nearby of another Plaza Hotel and Casino. The New York Times reported the decision left the Tamares Group, owner of the existing low-budget 37-year-old Plaza in Vegas, uncertain as to its next move. In the three-week trial, lawyers for the El-Ad Group, an Israeli company that owns the Plaza Hotel in New York, said the Tamares property had gone by several names, including the Union Plaza and Jackie Gaughan’s Plaza Downtown. The jury agreed that the existing Plaza had not adequately protected its trademark. El-Ad bought 36 acres on the Las Vegas Strip last year for a record US$33 million an acre and plans to build a seven-tower, 6,700- room version of the Plaza in New York. The company announced earlier this year that it woulddelay construction at least until 2010 because of financing difficulties. “Our victory is based on the abiding strength of the Plaza brand, and we are very pleased by the jury’s decision affirming our rights,”Miki Naftali, president of El-Ad, said in a statement. “Our rights date back more than 100 years; there is certainly no confusion about the highest standards of luxury and elegance we represent.” Not-So-Rich List The equity market turbulence caused by the global credit crunch and the more cautious assessment by analysts of Macau’s earnings potential for the next year has contributed to Sheldon Adelson slipping down the Forbes list of America’s richest billionaires. Last year, the magazine ranked Mr Adelson, the chairman of Las Vegas Sands Corp (LVS), as the third richest man in the US (behind Warren Buffett and Bill Gates) with a fortune of US$28 billion. But as controlling shareholder of LVS, Mr Adelson’s personal fortunes have suffered along with those of his company and world stockmarkets.When thenew listwaspublished,hehadslipped to15th spot with an estimated US$15 billion fortune.LVS is spending around that amount on resort development in Macau and Singapore. On October 1, Bloomberg reported that Mr Adelson has invested US$475million in LVS to strengthen its capital after its share price had fallen 70% this year. LVS is building a US$12 billion string of casino resorts with 20,000-rooms on Macau’s Cotai Strip, in addition to the $4 billion Marina Bay Sands in Singapore and the $800 million Sands 44 Briefs International Briefs Bethworks in Bethlehem, Pennsylvania. The company opened the $2.4 billion Venetian Macao resort in August 2007, and the Palazzo on the Las Vegas Strip in January this year. “While the credit markets are experiencing turbulence, our strategy remains alive andwell,”the 75-year-oldAdelson commented. “This investment will strengthen our capitalization and liquidity position as we continue to execute our plans.” Casino Babylon? Iraq’s national investment committee is studying projects proposed by U.S. and Russian companies to turn Saddam Hussein’s palace near the site of ancient Babylon into a tourist attraction with a casino. Russian news service RIA Novosti, citing a report in Al-Sabah , a newspaper controlled by the Iraqi government, said the plan has been advanced by the governor of Babil Province,Saleh al-Muslimawi. Muslimawi declined to reveal the identities of the investors but said the project involved the restoration of museums and historical sites in Babylon. Babil lies about 85 kilometres south of Baghdad and is home to the architectural and religious monuments along the Euphrates River that are part of the fabled city of antiquity. The palace of Saddam Hussein,who was executed by hanging in December 2006 by the US- backed government, overlooks Babylon’s ruins. The historical sites are on a list of investment options proposed by provincial authorities.Their efforts areopposed,however,byhistorians and archaeologists,who fear that development will damage the sites. There is also concern that development will hamper efforts to extract compensation for losses incurred as a result of the US-led invasion in 2003. Iraq lodged a complaint with UNESCO three years ago. Hundreds of artifacts thousands of years old were stolen or destroyed during and after the invasion. In one of the worst cases the American military built a base at an excavation site in Babylon, destroying the brick foundation of King Nebuchadnezzar II’s palace, which dates back to the 7th century B.C. Foxwoods to Cut 700 Jobs Last month, Reuters reported that Foxwoods Resort Casino, North America’s biggest casino, announced it would lay off 700 workers, or about 6% of its work force, because of the weakening US economy. The 340,000-square foot casino in Connecticut, owned by the Mashantucket Pequot Indian tribe,is the biggest player in the thriving Native American gaming industry, which generated US$27 billion in gross revenues nationwide in 2007. The job cuts come just four months after Foxwoods opened with much fanfare a new US$700 million skyscraper in the woods of Connecticut adjacent to the main casino. The MGM Grand at Foxwoods added 1,400 slot machines to Foxwoods’ previous 7,200, as well as a new 4,000-seat theatre. “People are gambling less”, said tribe spokeswoman Lori Potter.“It’s been sudden.” Most CityCenter Financing Secured MGMMirage told investors on October 6 that it had securedmost of the remaining US$3 billion in financing for its massive CityCenter development. In a statement, the company said it had secured a The Plaza Hotel in New York City