Caesars Entertainment Corp. (CZR), the largest operator of U.S. casinos, is Asia.
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| Gary Loveman, Chairman and Chief Executive Officer of Caesars Entertainment Corp. |
Chairman Gary Loveman and Steven Tight, president of the Las Vegas-based casino owner’s international development unit, held preliminary talks with Philippine President Benigno Aquino last month in the U.S. to discuss the possibility of building the resort in the Southeast Asian country, Tight said in a phone interview yesterday.
“There’s no major international brand currently in Manila,” he said. “There’s a chance to create something that will drive tourism, that will really put Manila on the regional tourism map.”
The Philippines awarded four licenses in 2008 and 2009 to casino operators owned by billionaires including James Packer, Lawrence Ho and Enrique Razon to build resorts in the 120-hectare (297-acre) Entertainment City, a Las Vegas-style complex designed to compete with Singapore and Macau’s gambling markets. Each Philippine licensee agreed to invest $1 billion over five years. The country’s gaming regulator hasn’t granted any new licenses under Aquino’s term, which started in 2010, said Philippine Amusement & Gaming Chairman Cristino Naguiat, who this week confirmed Aquino’s discussion with Caesars.
Caesars approached the government to seek a license and approval for the lease of the land next to Ninoy Aquino International Airport, about 4.7 kilometers (2.9 miles) from Entertainment City, Tight said.
“We’re in the process of evaluating everything,” Naguiat said when asked if the regulator will give out new licenses. The government may consider raising the investment requirement of new entrants to $1.5 billion, he said. “If we will bring in someone new, there has to be value added,” Naguiat said.
The Philippine Daily Inquirer earlier reported on the talks. President Benigno Aquino, in a forum with reporters, said today the government is reviewing Caesars’ application.
Koreans, Chinese
Caesars is seeking to build a resort with shops, restaurants and an entertainment district that could showcase international performers such as Celine Dion and Elton John, Tight said.
The company hopes the project would complement a casino resort it’s building in South Korea, Tight said. Caesars plans to build a network of casinos in Asia and is also interested in the market in Vietnam, he said.
A Philippine resort would benefit from the increasing number of South Korean travelers to the country as well as tourists from southern China, according to Tight. More than 20 percent of tourists in the Southeast Asian country came from South Korea in the first seven months of the year, according to the tourism department. This was followed by the U.S. which contributed 16 percent of the total, while China ranked third with 9 percent.
Partnership
Caesars is working with a local company on a possible casino project and is seeking a “large scale” domestic partner for the resort, Tight said.
Entertainment City will have four casinos including Solaire Resort & Casino by Razon’s Bloomberry Resorts Corp. (BLOOM) City of Dreams Manila, a venture owned by Melco Crown Entertainment Ltd. and Philippine billionaire Henry Sy, is slated to open by this year.
The two remaining licenses are held by an affiliate of Kazuo Okada’s Universal Entertainment Corp. and a venture of Genting Hong Kong Ltd. and Philippine billionaire Andrew Tan. If Okada’s group doesn’t complete its casino project by March, it may forfeit its performance bond of 100 million pesos ($2.2 million) to the Philippine gaming agency, Naguiat said.
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