Inside Asian Gaming

REGIONAL BRIEFS S. Korea Mapping New Resort Casino Strategy South Korea’s government is expected to unveil a new tourism strategy later this month that could see a lowering of investment barriers for companies interested in developing resort-scale casinos in specially designated economic development zones. “We are considering easing the bidding standards after receiving complaints that it is too difficult to meet the criteria of BBB credit ratings,” a government official told the English-language Korea Herald. “But we have yet to decide on detailed plans.” With an eye on the current boom in leisure travel out of China, the government particularly is looking to develop an economic zone at Yeongjondo near Incheon International Airport into a regional tourist destination. But the momentum stalled last year when the Ministry of Culture, Sports and Tourism rejected applications for the zone from Las Vegas-based Caesars Entertainment and Japan’s Universal Entertainment. Caesars’ bid was submitted in conjunction with Indonesian conglomerate Lippo Group. Plans called for an integrated resort pegged at 2.2 trillion won (US$2 billion). No reasons for the rejections were publicized, but the Herald ties them to concerns about financial stability. Universal, meanwhile, may be looking for a way back in. Last week, the company controlled by machine gaming magnate Kazuo Okada purchased a site in Yeongjong Sky City that industry sources say could be an attempt to restart the licensing process. Also lastweek, PNCFinancial Services, whichowns US-basedPNC Bank, submitted a letter of intent to the state-run land developer for a casino resort representing an investment of 7 trillion won. To date, the only gaming operator approved to build at Incheon is Korea’s own Paradise Group, the country’s largest private casino company. Paradise is partnering with Japan’s Sega Sammy Holdings and plans to start construction on an 11,190-square-meter resort in April with completion slated for 2017. Malaysia State Dismisses Casino Talk A report that property giant Berjaya Assets is mapping a large-scale resort in the Malaysian state of Johor, possibly with a casino, has been met with a stiff rejection from the state’s chief executive. Berjaya, an arm of the Berjaya Group conglomerate, has identified an 18-acre site on land near the Malaysia-Singapore causeway, according to Reuters, citing an unnamed source, and is developing plans that call for restaurants and nightclubs as part of an integrated destination aimed at a growing population of middle- and upper-income residents expected to move to Iskandar Malaysia in the coming years. But Datuk Mohamed Khaled, the chief executive, who is appointed by the sultan of Johor from the state’s majority political party, said the state will have no casinos as long as he is in office. He added further that he has yet to hear from Berjaya one way or the other. “We did not receive any application, proposal or plans on the [casino] project,” he said. INSIDE ASIAN GAMING | December 2013 42 Rendering of Paradise SegaSammy’s planned Incheon resort The Malaysia-Singapore causeway to Johor Baru The project would need the approval of state and some federal government agencies to proceed, including Malaysia’s Ministry of Finance, and its ability to attract a steady number of foreigners and locals, if it came to fruition, could pose a competitive threat to Singapore’s two resort casinos. But Mr Khaled left no doubt that if an application was received, or even if approval was granted by the federal government, Johor would oppose the project to the end that no casino ever gets built. New President at Wynn Macau Wynn Resorts Chief Operating Officer Gamal Aziz has been named president of Wynn Macau in a move that signals the company’s increasing focus on its US$4 billion expansion into the booming Cotai resort district. Mr Aziz, who replaces Steve Wynn in the position, will remain COO of the parent company, while Mr Wynn, Wynn Resorts’ chairman and chief executive, will continue as chairman and CEO of the Hong Kong-listed Macau subsidiary. “I expect Aziz is going to dedicate more time and resources to oversee Wynn’s existing operations and upcoming projects in Macau upon the appointment,” Philip Tulk, a Hong Kong-based analyst at Standard Chartered, told Bloomberg . WynnResortsholdsoneof the threeprimarygamingconcessions Gamal Aziz