Sunday, December 11, 2005

Another one bites the dust

At this kind of drop-out rate, I'm wondering if Singapore would have an IR at all.

Lucky we will always have NTUC to fall back on. Downtown South Integrated Resort. We can have more chalets, kiddy rides, fancy pools, theme rides plus a jumbo jackpot room the size of 10 football fields.

With it, we can hold our WCG again. World Casino Gaming. All the experts around the world gather at Downtown South IR to complete in their Jackpotting skills.

Another first for Singapore.

Title : Tabcorp, Wynn Resorts withdraw from Singapore integrated resort project
By :
Date : 09 December 2005 1945 hrs (SST)
URL : http://www.channelnewsasia.com/stories/singaporebusinessnews/view/182803/1/.html

In yet another sign that the battle to build Singapore's first integrated resort is getting more intense, another two potential bidders have pulled out from the race.

They are Australian gaming company Tabcorp and US-based Wynn Resorts.

The Singapore Tourism Board told Channel NewsAsia that it had been notified of Wynn's withdrawal on Friday.

No details were given.

Tabcorp said it would not be making any bids for both the Marina and Sentosa sites, citing increased development costs as one of the reasons for the move.

The latest withdrawals come just days after Singapore property developer GuocoLand announced that it was staying out of the fray.

Tabcorp said it was seeing the progressive relaxing of restrictions on gambling in a number of markets around the world.

And these new markets are viewed as growth opportunities for the company.

Analysts said they were not surprised by the withdrawals, given the high level of competition and the costs involved to stay in the race.

UOB Kay Hian's analyst, Pratik Burman Ray, said: "I think Tabcorp's pulling is not totally surprising. We have a very strong set of bidders for Marina site and some of the other bidders are some of the biggest in the gaming industry. And they will have a stronger chance. And Tabcorp realises that it has a better use of its capital and investment opportunities in other markets."

There has long been talk that other Asian countries will soon relax their restrictions on gambling laws.

And US investment bank, Merrill Lynch estimates that about 55 new casinos could spring up in Asia.

Analysts said Tabcorp pulled out of the Singapore bid to explore opportunities in Thailand.

According to them, it is possible that the Thai government could allow the development of integrated resorts in Phuket sooner than expected.

With Tabcorp, Wynn Resorts and Guocoland out of the race, there are now five bidders gunning for the Marina Bayfront licence.

Cash-rich resort operators like Genting International, Las Vegas Sands, Harrah's Entertainment and MGM-Mirage are seen as the frontrunners.

On Friday, bidders for the Marina Bay project had to pay a S$400,000 probity check fee each and submit details of their partners to the Singapore Tourism Board.

Markets are waiting for signs as to whether local big names like City Developments and Far East Organisation will be roped in by the potential bidders.

When contacted by Channel NewsAsia, MGM said that it is not linking up with any local partner, apart from CapitaLand - which was previously announced.

Other potential bidders declined comment. - CNA/ir

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