Inside Asian Gaming

40 INSIDE ASIAN GAMING | February 2013 REGIONAL BRIEFS Caesars Pursues Resort Casino in South Korea Caesars Entertainment and Indonesia-based, Hong Kong-listed Lippo Group have agreed to the terms of a joint venture under which they will seek permission from the South Korean government to develop a gaming resort in Incheon, site of the country’s international airport and a special economic development zone targeted for tourism development. Las Vegas-based Caesars will own 40% of the venture, Lippo 20%, and another unnamed partner will hold the remaining 40%, according to The Wall Street Journal . Frozen out of the Macau gaming boom, the debt-laden casino giant has been aggressively looking for opportunities to expand in Asia and has also expressed interest in Taiwan and Japan. The company has said that the first phase of construction will cost US$500 million and feature 100 table games, 150 slot machines, 600 hotel rooms and a variety of non-gaming attractions, including residential space. Controversy over Packer’s Sydney Plans The accounting firm hired to provide independent advice to the panel assessing Crown’s proposal for a second casino in Sydney earns millions of dollars from the company’s Macau casino operator, Melco Crown. The revelation has raised concerns about conflicts of interest and sparked calls to have the New South Wales auditor-general join the panel assessing the potential benefits of Crown’s proposed billion-dollar resort at the Barangaroo waterfront complex on Darling Harbour. The department of Premier and Cabinet announced earlier this month that Deloitte had been appointed‘’commercial adviser’’to the panel, whose findings may include recommendations on tax rates and licensing fees and whether to allow the project, which is being considered without competing bids, to proceed. Deloitte is also the auditor of Hong Kong-listed Melco Crown, the Crown-Lawrence Ho joint venture that operates two casinos and several slot halls in Macau. Crown owns 33% of Melco Crown and Crown Chairman James Packer and CEO Rowen Craigie are on its board of directors. According to its annual report, Melco Crown paid Deloitte more than A$2.6 million in 2011. A spokesman for Premier and Cabinet said, “The department is satisfied that the contracted team from Deloitte will provide dedicated professional services in an environment of scrupulous attention to management of potential conflicts of interest.” Others are questioning the relationship, however, among them former NSWAuditor-General Tony Harris, who said it is“difficult, if not impossible, for Deloitte to provide advice where that advice conflicts with the ongoing relationship of the international company with Packer.” Greens MP John Kaye said Deloitte’s involvement raises more questions about the government’s intentions. “The unsolicited proposals process has gone from low credibility to no credibility,” he said. “Not only is it being conducted behind closed doors, with no public accountability, but now the commercial adviser has a powerful financial relationship with the applicant.” In pushing for including the auditor-general on the panel, Independent MP Alex Greenwich bemoaned what he called the lack of “transparency” surrounding the process. “There was no tender process, we are not sure how the cost of a license will even be established,” he said. “A number of questions remain about the public benefit and I think it is important that there is an independent party that is concerned about the public interest as part of that review panel.” Ex-Triad Boss Eyes VIP Rooms Former triad boss Wan Kuok Koi is reported to be pursuing ownership of three VIP gambling rooms inMacau, wherehis violent exploits once were legendary. Freed in December after serving 13 years in prison for a series of gangland crimes, the 57-year-old Mr Wan, known as “Broken Tooth Koi,” is pursuing the alleged openings as a first step in a planned comeback in the casino industry, reports Hong Kong’s East Week magazine. The magazine, citing sources close to Mr Wan, did not specify in which casinos the rooms would open but said he is partnering with Christine Si Tou Yuk Lin. Ms Si, sometimes addressed as “Big Sister” in deference to her influence in the industry, was once linked romantically to Ng Man Sun, a major investor in the Greek Mythology Casino on Macau’s Taipa Island. Known in Macau and Hong Kong as “Street Market Wai,” Mr Ng was a bitter rival of Broken Tooth’s before the latter was jailed. Mr Ng made news last summer after he was attacked and severely beaten in a restaurant in the Greek Mythology by several men armed with clubs and hammers. No one was charged in the attack and there have been no arrests. East Week reports that Mr Wan’s family already controls six or seven VIP rooms, but Mr Wan himself is said to be under close police surveillance. His first attempt to travel overseas since his release was spoiled last month when Singapore authorities refused him entry into the city-state. Macau Visitation Flat in 2012 Macau welcomed 28 million visitors in 2012, 60% of them from mainland China, according to figures released by the government’s Statistics and Census Service. The increase over 2011 was modest, only 0.3% year on year, but Rendering of Crown’s proposed resort at the Barangaroo waterfront complex on Darling Harbour Wan Kuok Koi, on his release from Coloane prison in December