Packer's joint bid for Singapore casino

James Packer

James Packer, chairman of Publishing & Broadcasting Ltd, says he is teaming up with Las Vegas-based Eighth Wonder to bid for Singapore's second casino licence, which will be the last to be issued for at least a decade.

Eighth Wonder, which developed the New York New York casino-resort in Las Vegas, was the first of three companies to submit its proposal to build and run the casino-resort on Sentosa island.

The company is competing with Kerzner International Ltd and Genting Bhd, which are expected to submit their bids today.

Singapore lifted its ban on casinos last year to double overseas visitor arrivals to 17 million and triple tourism spending to S$30 billion ($19 billion) by 2015. The Government in May awarded Las Vegas Sands Corp, the world's biggest casino operator by market value, a contract to develop Singapore's first casino in the downtown area.

Eighth Wonder chairman Mark Advent said yesterday that Publishing & Broadcasting "is a world-class operator with a formidable brand, with customers in Southeast Asia, with Crown Casino".

Sydney-based Publishing & Broadcasting, which has a venture with Melco International Development Ltd, and Isle of Capri Casinos Inc were equity partners in the bid, while Starwood Hotels & Resorts Worldwide Inc would manage the hotels, he said.

Packer, who declined to comment further, and Chris Anderson, deputy chairman of Publishing & Broadcasting, accompanied Advent to the bid submission room today.

Publishing & Broadcasting and Melco International, headed by the son of gaming billionaire Stanley Ho, earlier this year pulled out of a joint bid for the first site. On January 3 Packer said expected returns from the resort, which required a land fee of S$1.2 billion, "are insufficient to justify" development costs. His company owns Australia's biggest casino.

Shares of Publishing & Broadcasting fell 0.4 per cent to A$19.53 in Australia yesterday, after earlier rising as much as 0.6 per cent, before closing just 1c down at A$19.59.

Eighth Wonder hired Rudolph Giuliani, Mayor of New York during the September 11 attacks, to plan the security features should it win.

Both gaming resorts are expected to open by 2010. The city-state will be competing to win more tourists from Macau, which opened its gambling market to overseas investors in 2002.

- BLOOMBERG