Boredworkers.com

This might be old news to some but interesting news nonetheless. Since its announcement last year, big names in the gaming industry both local and abroad have been scrambling to place their bids to build Singapore’s first casino. Five consortium managed to beat the deadline for submitting corporate history disclosure and personal history disclosure forms on 9th December 2005. However, over the weeks as the 31st March 2006 bidding deadline draws nearer, one of the five have dropped out.

The original five bidders and their allied companies as follows:

• Genting International - Star Cruises Ltd
• Harrahs Entertainment - Keppel Land
• Las Vegas Sands Corp
• MGM Mirage - CapitaLand
• Publishing & Broadcasting Ltd (PBL) - Melco International

However, recent developments have seen the last in the list above (PBL - Melco International) drop out of the race. The reason for their withdrawal was that the returns were “insufficient to justify the higher projected capital costs of the project” (quoted by Mr. James Packer of PBL). This is an interesting and valid statement indeed. The building of the casino resort is estimated to cost USD 3 billion. Not a light sum at all by any standards. It is expected to be the most expensive casino resort ever built, topping even the Las Vegas complex opened by billionaire Steve Wynn in April.

I don’t have any interest in this topic since I don’t follow the stock market. Speculators are saying that at least one more consortium will drop out of the race for the Singapore bid in this article. That same article also says that the US led teams are in the forefront. Putting two and two together, you get the impression that they are saying Genting International will drop out eventually. However, IMHO, this is a bid that Genting International must win. Its a do or die situation for Genting since a casino in Singapore will directly affect Genting Berhad’s business in Genting Highlands, Malaysia. Having said that, whether or not they have what it takes to win the bid is still left to be seen.

Me, I’m washing my hands of Genting Berhad. In another 3 months, I’ll find out whether it was a good move on my part or not.

Some light reading for those who are interested:
Singapore Casinos and Singapore Gambling
Moguls abandon bid for Singapore casino