HONG KONG/MANILA (Oct 22): Caesars Entertainment Corp., the largest operator of U.S. casinos, is seeking a license from the Philippine government to build a $1 billion resort in the country, betting on luring gamblers from across Asia.
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 by phone 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 has issued four licenses 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. 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 the Ninoy Aquino International Airport, about 4.7 kilometers (2.9 miles) from the Entertainment City, Tight said. Aquino asked his cabinet to review the company’s proposal and make a recommendation, he said.
“We’re in the process of evaluating everything,” Naguiat said when asked if the regulator will give out new licenses.
The Philippine Daily Inquirer earlier reported on the talks.
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. 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 Japanese gaming magnate Kazuo Okada and a venture of Genting Hong Kong Ltd. and Philippine billionaire Andrew Tan.