Inside Asian Gaming

INSIDE ASIAN GAMING | September 2012 8 3 Lim Kok Thay Executive Chairman and CEO Genting Berhad While the fortunes of Resorts World Genting in Malaysia—the country’s only casino—continue to rise and fall with Malaysia’s changing political climate, Lim Kok Thay’s company has dealt with the risk by diversifying far and away from its native shores. Genting’s New York casino at Aqueduct Racetrack in Queens looks to be going from strength to strength. In July it posted a record US$1.13 billion in total bets, which resulted in record revenue of $59.75 million. The “racino”—as it is known due to its racetrack location—is the only one in America’s biggest city and is pulling in gamblers from across the heavily populated metropolitan region, despite its lack of table games. In Manila Genting’s joint venture with Alliance Global Group—Travellers International Hotel Group—has announced that it will open its second casino in the city in 2016. The US$1.1 billion Resorts World Bayshore development will makeTravellers— and Genting by extension—by far the largest casino operator in the Philippines. And Lim Kok Thay also looks well- positioned to play kingmaker in the battle for Australia’s Echo Entertainment, owners of The Star casino in Sydney and Jupiters on the Gold Coast. James Packer has made it clear that he is aiming to boost his shareholding to 25% and seize control. But Genting is also waiting for regulatory approval to go from 10% to 25%. He could cozy up to Packer or he could go it alone, but either way, Mr Lim is playing an influential role far from the tropical shores of his home country. But it isn’t all rosy. Genting’s plans elsewhereintheUnitedStatesappeartohave taken a knock. It failed to receive legislative approval for a resort casino in Miami Beach and has been forced to downsize its plans there to two condo towers and a hotel with fewer than 500 rooms, or about one-tenth of its original size. Alongside the disappointment in Miami, Genting announced a luxury boutique casino on Bimini Island in the Bahamas. The casino will be the only one on the island, which is 48 nautical miles from the coast of south Florida, but plans for a US$24 million refurbishment of the 5-year-old site are a far cry from the $3.8 billion megaresort the company was planning to build nearby Miami. And its operations in the world’s most profitable casino market, Singapore, have taken a slight hit of late. Higher expenses and lower gaming revenues caused Genting Singapore’s net profit to dip by 32% year on year in the second quarter to S$165.5 million (US$132.5 million). On the other hand, if regulators in the city-state approve further amendments to the Casino Control Act to deter Singaporeans from gambling at its two integrated resorts, Asian Gaming 50 – 2012 Genting stands to benefit more than rival Las Vegas Sands Corp due to the proximity of Genting Highlands to the Lion City. But regulatory risks notwithstanding, the company’s cash position and its global reach put it at the very top of casino operators around the world, and much of its success is attributable to the capable hands of Mr Lim. “Just on a global basis their scope and reach is far greater than any other casino company,” says one Singapore-based gaming analyst. The company is also believed to be looking at opportunities in the North Asian markets of Mongolia, South Korea, Japan and Russia’s Pacific coast. Mr Lim, 60, son of Genting founder Lim Goh Tong, joined the company in 1976 and has been a director since 1986. He became chairman in 1993 and executive chairman in 2005. He is also the co-founder of Genting Hong Kong, which is the third-largest cruise operator in the world. 4 Lawrence Ho Co-Chairman and CEO Melco Crown Entertainment Lawrence Ho is leading Melco Crown Entertainment toward regional expansion after having completed a significant localization of the company’s top management. On 5th July, the company entered into a memorandum of understanding with Belle Corp, controlled by the Philippines’ richest man, Henry Sy, to form a consortium that will own and operate the US$1 billion Belle Grande Manila Bay resort, scheduled to open next year at the Entertainment City resort complex in the Philippines capital. Melco Crown’s is investing $580 million in the project, which will include 880 hotel rooms, 350 table games and 1,900 slots. There is speculation that Mr Ho’s company could also be gearing up to bid for a project in a new gaming and entertainment zone near Vladivostok, Russia—the Integrated Entertainment Zone of Primorye. Nash Dom Primorye, a state-owned company that will manage the zone, issued a request for concepts in July, inviting gaming operators to submit ideas for the first phase of the zone’s development and offering attractive leases and a near zero gaming tax rate. Melco Crown Entertainment Executive Director Frank Tsui and Director of Business Development Stephanie Wong have already traveled to the zone to meet with top management of Nash Dom Primorye. Mr Ho also plans to expand in Macau, on Cotai, with Macau Studio City. The long-