Inside Asian Gaming

INSIDE ASIAN GAMING | October 2011 18 GSA T here are currently six Asian jurisdictions jockeying for the number three spot in international investors’ affections when it comes to building fresh regional markets for resort- style casino gaming. The leader in the foot race behind Macau and Singapore is ostensibly the Philippines. It already has an integrated resort (IR) complete with gaming, multiple hotel brands and meetings, incentives, conference and exhibition (MICE) facilities. That’s ResortsWorld Manila—conveniently situated across the road from the capital’s international airport. Even better, one of the partners in this joint venture is an internationally-proven casino operator— Malaysia’s Genting Berhad via its Genting Hong Kong unit. International investors can already gain equity exposure to that property. It’s a US$700 million, 50:50 joint venture between two listed companies—Genting Hong Kong (quoted on the Singapore market) and Philippines developer Alliance Global Group (listed on the Manila exchange). Genting Hong Kong—formerly known as Star Cruises—also operates casino cruise ships out of Hong Kong and other ports in the Asia Pacific region. Other potential Philippines IR opportunities are on the horizon for international investors. A joint venture IR—Belle Grande Manila Bay between local companies Leisure and Resorts World Corp and Belle Corp, and with a reported price tag of US$750 million—is currently under construction in Manila. A third resort—possibly with investment from Aruze Corp, the gaming company founded by pachinko machine maker and Wynn Resorts Vice Chairman Kazuo Okada—has also been proposed for the Manila Bay area. Contenders The Philippines market is not yet as big in gross gaming revenue (GGR) as South Korea however, which is worth about US$2 billion per year; about half of that supplied by the one casino (located out in the boondocks) that’s allowed to serve local players. South Korea is making noises about a major overhaul and liberalisation of its casino regulations that would allow for at least one more casino serving locals and up to five international-standard IRs. For any of the aspiring Asian jurisdictions to take and then hold on to the third spot for investor appeal behind Macau and Singapore, they will need to compete not only in terms of GGR but in terms of regional attraction to consumers and in terms of rate of return on investment for the backers. On Join the Club Inside Asian Gaming ’s rundown on the destinations competing for a place at gaming’s top table alongside Macau and Singapore