Inside Asian Gaming

proposal reflects our vision for the Sentosa integrated resort as a large-scale family re- sort with its host of world-class family leisure activities and other strong offerings.” Each of the bids for the Sentosa Island license exceeded US$3 billion, suggesting the contenders saw significant potential in the site. Genting’s proposal was worth US$3.4 billion, and included a Universal Stu- dios theme park. The theme park at Genting’s Resorts World at Sentosa will feature 22 attractions, with 15 designed specifically for Singapore, along with an animation studio. The theme park will take up roughly half of the site. The resort will have 1,830 rooms in six hotels and the world’s largest marine park, spanning 20 acres and including a whale shark lagoon. It will also have meeting facilities, retail stores and a 1,600-seat theatre for a resident show produced by members of the creative team behind Cirque du Soleil. Although Genting International eventu- ally won the Sentosa Island integrated resort rights, the project has not been devoid of controversy. Genting had submitted its win- ning bid with cruise-operator Star Cruises Ltd, which is also part of the Genting Group. Genting International has since assumed full control over the Sentosa project in order to avoid issues with Singapore authorities. The reason for the change: Following the awarding of the Sentosa bid, Genting Inter- national and Star Cruises had announced a planned casino project in Macau with Stan- ley Ho. Pro-government Singapore daily Straits Times reported that the deal with Ho had“raised a red flag”with Singapore author- ities, given Ho’s alleged links to organized crime groups—even though the allegations have never been proven. As a quick-fix, Star Cruises announced in March that it would take over Genting International’s stake in the Macau project, while Genting International would assume Star’s entire stake in the Sen- tosa project. Macau challenge The consensus view is that gaming rev- enues in Singapore will only ever be a frac- tion of those in Macau, which is likely to hold greater appeal to the massive mainland Chinese market, not only because of greater geographical proximity (a billion people live within a three hour flight from Macau, com- pared to 550 million people from Singapore), but also cultural affiliation. Despite this disadvantage, Pricewater- houseCoopers (Macau) Gaming Practice Di- rector David Green pointed out that Singa- pore will have a major chip in its corner—a much lower gaming tax rate than neighbor- ing casino jurisdictions. The gaming tax rate in Singapore will be 15 percent, but the rate on“premium”play, including high-rollers and players brought in by junkets, will only be 5 percent. Neither Malaysia nor Macau offers separate rates for “premium” play, and tax gaming revenue at 28 percent and 39 per- cent respectively. Green said Singapore’s explanation for offering the split is the higher cost of bring- ing in premium players, but of course, the re- sult is that operators of Singapore’s coming casinos will have the flexibility to offer higher commissions and greater incentives to draw junket operators and premium players. The “premium” play drawn by Singapore will likely have a greater impact on casino operators in Macau with U.S. interests, than the “local” operators. Las Vegas-based LVS and Wynn Resorts need to ensure all junket operators they work with are registered with Nevada gaming regulators. As such, while the “locals”—Stanley Ho and Hong Kong- listed Galaxy Entertainment Group—depend Rendering of the ArtScience Museum at Marina Bay Sands Genting International Chairman Lim Kok Thay stands in from of a model of ResortsWorld at Sentosa shortly after his company won the rights to develop in Singapore last December 30