Inside Asian Gaming

REGIONAL BRIEFS Crown Closes In on Sydney Casino Crown Resorts has been approved by the New South Wales Parliament to proceed with development of a A$1.3 billion high- rollers-only casino and hotel on Sydney’s Darling Harbour. The legislation, backed by the governing coalition of Premier Barry O’Farrell’s dominant Liberal Party, passed on 18th November with the support of the opposition Labor Party and only the NSW Green Party and the Christian Democrats voting against it. The state’s Independent Liquor and Gaming Authority still needs to sign off on Crown’s suitability to operate the proposed six-star resort, which also will require planning approval. Crown Chairman James Packer released a statement saying he was “humbled” by the government’s endorsement. He said the development would “help attract Asian high-net-worth travellers to Sydney, in particular from China”. “Sydney is one of the world’s great cities,” he said. “It deserves one of the world’s great hotels.” Crown Sydney, as it’s called, is slated to open in 2019, when rival Echo Entertainment’s exclusive state license at its Star casino expires. However, provisions in the agreement restrict the resort to VIP players on a members-only basis and prohibit slot machines. They also include guarantees for at least A$1 billion in license fees and gambling taxes over the first 15 years of “full operation”. Macau OK’d for New Border Crossing The Chinese government has approved construction of a new border checkpoint between Guangdong province and Macau. The main structure of the 28,000-square-meter facility will be in Macau with supporting facilities in the neighboring city of Zhuhai. Funded mainly by the Macau government, it will include a 450-meter-long pedestrian tunnel connecting the facility directly to the terminal of the recently completed Guangzhou-Zhuhai Intercity Railway. The crossing will not accommodate vehicles, however, its purpose being to divert travelers from the overcrowded main crossing at Gongbei. Investment analysts Union Gaming Research Macau say the new checkpoint could handle as many as 200,000-250,000 people a day. Current capacity on the China side of the Gongbei checkpoint is approximately 350,000. More than 10.5 million visitors arrived in Macau via Gongbei through the first nine months of this year, representing 64% of all visitors from mainland China and 48% of total visitation. Okada Retools in the Philippines Century Properties Group, a Philippine developer, has concluded an agreement with a Philippine affiliate of Kazuo Okada’s Universal Entertainment Corp. that should go a long way toward allowing Universal’s planned US$2 billion resort casino in Manila to move forward. Century’s involvement with Eagle I Landholdings covers five hectares of the Japanese billionaire’s 44-hectare project and includes a separate deal to acquire a 36% interest in Eagle I, the Universal affiliate that owns the site. Century said it would develop luxury retail and residential projects there and will be issued 432 million preferred shares. No purchase price was disclosed, according to Reuters . Century has 28 projects in various stages of construction in mixed-use developments in Manila and the nearby southwestern province of Cavite. The Universal deals, assuming all legal and regulatory requirements are met, could prove critical to Mr Okada’s Philippine plans, which have been derailed by accusations of bribery and alleged violations of laws limiting foreign ownership of investments in the country. The US Federal Bureau of Investigation and its Philippine counterpart, the National Bureau of Investigation, have launched separate investigations of Mr Okada and his companies in connection with the allegations. Universal denies any wrongdoing and has moved further to solidify its standing in the country through a separate sale of stock to a company called First Paramount Holdings 888. Combined with the Century investments it places more than 60% of Eagle 1 in Philippine hands, a move that will “create a more favourable situation in response to the land ownership requirements,”Universal said. Louis XIII Secures Funding Hong Kong-listed Louis XIII Holdings appears to have raised the last tranche of funding needed to develop its luxury casino and hotel in Macau’s Cotai resort district. Investment brokerage Union Gaming Research Macau, which covers the stock, said the company has received a letter of intent from a mainland China bank for two debt facilities totaling US$515 million. UGRM is a branch of Las Vegas-based Union Gaming Advisors, which helped run a recent equity sale for Louis XIII that raised $133 million. Combined with a $411 million IPO completed earlier this year, the company has amassed about $1.05 billion, assuming the debt deal is finalized. “Which suggests the property is therefore fully funded and should open with approximately $100 million in cash on hand,” UGRM said. That opening is slated for early 2016. Plans for Louis XIII, as the resort is called, include 66 high-limit table games, several hundred upscale hotel rooms and suites and exclusive dining and shopping. Rendering of the upcoming Crown Sydney INSIDE ASIAN GAMING | December 2013 42