G3Newswire ASIA & OCEANIA GAMING NEWS
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PHILIPPINES - BLOOMSBERRY HIRES THOMAS ARASI Philippines operator, Bloomberry Resorts has hired the former presi- dent and chief executive of Singapore's Marina Bay Sands, Thomas Arasi, to run its $1.2bn Solaire Resort and Casino. Bloomberry's announcement comes after it ended a contract with another high-profile group of former Las Vegas Sands Corp. executives to manage the Solaire, triggering a current legal dispute.
Mr. Arasi will lead the efforts to ensure Solaire ramps up operations and profitability as well as oversee the $500m expansion phase of Solaire that is scheduled to open in the last quarter of 2014. Bloomberry's Chairman Enrique Razon said Mr. Arasi was appointed President and COO of the listed Philippine casino operator. "We believe his credentials and experience will be key to achieve our expectations for Solaire," he added. Mr. Arasi has also held senior executive posts with the InterContinental Hotels Group and Tishman Hotel Corp. Bloomberry said Mr. Arasi was "instrumental in helping Marina Bay Sands achieve unprecedented profitabili- ty of circa $1.5bn in annual run-rate EBITDA."
Last month, Bloomberry terminated the services of Global Gaming Asset Management (GGAM) for alleged breach of contract, in part by not spending "any material time in attending to the management of Solaire." GGAM denied Bloomberry's claim and plans to take the issue to arbitration in Singapore. Solaire opened in March and is part of the Philippines' bid to become Asia's third gambling hub, after Macau and Singapore. It is the first casino venture of Mr. Razon, an international ports mogul.
SAVAN VEGAS IN TAXATION DISPUTE
The Savan Vegas Casino in Laos is battling a huge tax bill and government seizures to keep the location operating
Laos - Operations
Macau-based Sanum Investment is reconsidering its development plans for Laos due to what the company describes as: “diminished confidence in operations in the country,” which borders Cambodia, Thailand and Vietnam.
The local operator opened its Savan Vegas casino and hotel in Savannakhet province in 2008. Savan Vegas is currently attracting between 8,000 to 10,000 players a month. However, it has stalled any development plans following the govern- ment’s move to take control of Thanaleng Slot Machine Club near Vientiane.
Richard Pipes, the Executive Vice -President of Sanum has also revealed that the company had also been hit with an unexpected tax bill for US$23m.
The casino’s current capacity is around 2,000 players a day, with its 490 hotel rooms running at 80 to 90 per cent occupancy levels during the week and 100 per cent at the weekends. With Chinese players becoming a more significant seg- ment for the casino, Savan had hoped to double its number of VIP rooms to 12 and add a Chinese-
The Savan Vegas Casino in Laos.
themed wing. It had also discussed investing up to $3m in upgrading the local airport.
But the onset of legal wrangles with minority partner ST Group, and the uncertainty of govern- ment seizures of gaming establishments, has left the group unwilling to make any more invest- ments until its future is guaranteed. Sanum has filed legal documents with the World Bank’s International Centre for the Settlement of Investment Disputes, claiming the government has broken treaties protecting foreign investments. If the retroactive tax bill is not settled, the entire future of Savan Vegas could be in jeopardy.
Galaxy Entertainment Group’s chairman Asia’s second richest
JAPAN - VEGAS-STYLE REGULATOR FOR CASINOS Lawmakers in Japan have revealed plans to establish an independent gaming regulator modelled on the authorities that police casinos in Las Vegas and Singapore under a draft outline to legalise gambling in a market seen as potentially the second-largest in the world.
The policy outline, which was prepared by Japanese lawmak- ers who favour casinos, outlines broad standards for licens- ing and regulating casino operators and their partners. After more than a decade of lobbying by lawmakers, a bill to legalise casino gambling is seen as having a good chance of passing in the coming months with the business-friendly Liberal Democratic Party in power and after Tokyo - a likely casino host - won the bid to host the Summer Olympics in 2020.
MGM Resorts International, Las Vegas Sands Corp , Melco Crown Entertainment and Wynn Resorts Ltd are among the global operators that have shown interest in developing a casino resort in Japan.
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MACAU Galaxy Entertainment Group founder Lui Che-Woo’s wealth has leaped by US$10.2bn in 2013, making him the second richest individual in Asia with a net worth of US$22.1bn. The 84-year- old billionaire added $1bn in a sin- gle day in October as Macau's record gaming revenue saw his shares hit a new high. Only Facebook’s Mark Zuckerberg and Ikea founder Ingvar Kamprad have made more money this year.
Macau gaming revenue jumped 21.4 per cent to $3.6bn in September from a year ago, according to Macau’s Gaming Bureau. Gross gaming revenue in 2013 is expected to grow 17 per cent to $44.5bn from a record $38bn last year.
Mr. Lui was born in 1929, in the city of Jiangmen in Guangdong province and in 1934, followed his family as they fled war-torn China for Hong Kong. After World War II ended, he bought surplus construction equipment left after
US forces invaded Okinawa. He imported machinery to Hong Kong, which was undergoing a reconstruction boom, and made his first fortune. The 26-year-old founded K. Wah Group, whose construction materials have been used in a quarter of all Hong Kong buildings.
When Macau ended the four- decade monopoly held by Stanley Ho in 2002, Mr. Lui’s Galaxy Casino, with Las Vegas Sands, won one of the three gaming con- cessions put up by the local gov- ernment. Within a year, the part- ners had split the license after a falling out over strategy: Sheldon Adelson wanted to re-create Las Vegas in China, while Mr. Lui wanted to cater to Asian tastes.
In 2006, StarWorld Macau opened and then in 2011, Mr. Lui opened the $1.9bn, 2,200-room Galaxy Macau resort. Galaxy shares have soared 122 per cent in the past 12 months. Mr. Lui owns a 65 per cent stake in Galaxy directly and through a family trust.
South Korea South Korea’s largest casino operator, Paradise Group, has unveiled its plans to build Paradise City by 2017 at a cost of US$1.799bn at the International Business Center at Incheon International Airport in Yeongjong Island in the north west of the country. Paradise’s joint venture with Japan’s Sega Sammy will include a 11,190-sq. m. foreigner-only casino, a five-star hotel, convention facilities and multiple entertainment venues. The construction will take place in two phases with the first expected to cost US$1.7bn. The second phase will increase the development’s size to 336,000 sq m, the size of 47 football stadiums. This will include indoor and outdoor entertainment facilities, multi-purpose halls, and shopping centers, spas, and shopping facilities.
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