Inside Asian Gaming

16 INSIDE ASIAN GAMING | April 2014 In Focus Photo: Karl Baron/flickr I n late 2001, Macau opened the tendering for three new casino licenses to end Stanley Ho’s 40-year monopoly. Caesars Entertainment—then known as Harrah’s—was the world’s largest casino operator at the time and notably absent from the list of 21 bidders. Caesars then missed out on a chance to enter Singapore when in 2006 it pulled out of the race for one of two licenses up for grabs following the city-state’s decision to legalize and bring casinos there. Announcing its withdrawal from the bidding, Caesars said the investment required in the Lion City would be too costly. In Caesars’ defense, few imagined at the time how massive the gaming markets in Macau and Singapore would become almost overnight. As a consequence of winning licenses in both those lucrative jurisdictions, Las Vegas Sands, which in 2001 had just one Vegas property in its portfolio, rose to become the No. 1 international casino operator by market capitalization. Caesars, meanwhile, owing to its reliance on a stagnating US market, saw a reversal of fortune. The company’s net loss of $1.76 billion in the fourth quarter was largely attributable to write-downs connectedwith its US operations. Gaining a Foothold Caesars Entertainment missed out on casino licenses in both Macau and Singapore, and it has been seeking a way to enter Asia ever since. In South Korea, it finally appears to be close Witnessing the soaring fortunes of LVS and Wynn in Macau, Caesars in 2007 made a vain attempt to gain a presence there by paying an astounding US$577 million for a loss-making local golf course which it eventually disposed of last year for $438 million. Now, at last, it may be on its way to securing a coveted foothold in Asia. Last month, a Caesars-led joint venture obtained provisional approval from the South Korean government to operate a foreigners-only casino at a proposed US$794 million integrated resort on Yeongjong Island, a special economic zone located near the port city of Incheon and the country’s main international airport. The JV company is called LOCZ Korea Corporation, held 40% by Caesars, 40% by Lippo Group, an Indonesian conglomerate listed on the Hong Kong Stock Exchange, and 20% by OUE Limited, a real estate developer traded on the Singapore Stock Exchange and controlled by Lippo. Part of Caesars’ share in the venture could be held by its Caesars Growth Partners subsidiary. Caesars Growth Partners was spun off last year as part of a complex restructuring designed to attract capital to fund growth