Venetian pitching casino to Singapore officials

Thursday, May 20, 2004 | 11:12 a.m.

BLOOMBERG NEWS

SINGAPORE -- Officials with Las Vegas Sands Inc., which opened a $240 million casino in Macau this week, are in discussions with Singapore government officials about developing what would be the first casino in the city-state.

Las Vegas Sands, known for its Venetian Casino Resort in the U.S. gambling capital, is relying on its first casino in Macau to boost its reputation with gamblers in China, Singapore's second- biggest source of tourists after Indonesia.

"Our primary selling point is we're the gateway to China with Macau," William Weidner, president of Las Vegas Sands, said in an interview in Singapore. "It's from there that we can direct where the market goes."

Singapore, which only allows lotteries and betting on horse- racing, is considering casinos as part of an island resort development in a bid to lure tourists and boost an economy that suffered two recessions in the past six years. The city has said it wants a casino catering to high-spending customers and would restrict access for some of its four million people.

Las Vegas Sands stands a good chance because "Singapore wants a big name and always prefers those with a proven track record," said Song Seng Wun, an economist at G.K. Goh Research Pte. "With the government behind this project, it won't be one that's second or third rate -- it needs to build a landmark with intense competition in Asia's leisure market."

Singapore has previously rejected calls to allow the opening of casinos, arguing the social dangers outweighed the potential for profit. Taxes from lotteries make up a 10th of the city- state's S$16.5 billion ($9.6 billion) tax revenue, G.K. Goh Research estimates.

Now though, government officials say they want a casino that would cater to high rollers instead of the mass market, and would restrict some locals from gambling there.

Las Vegas Sands' Macau casino, which opened in the former Portuguese colony this week, marks the end of a 42-year gambling monopoly for Hong Kong-born Stanley Ho, whose 12 Macau casinos earned $412 million last year.

The closely held Las Vegas Sands pitched a $12 billion, 20- casino plan to win its gambling license, including an $800 million duplicate of its Venetian Hotel Resort in Las Vegas.

"Singapore could have a very viable casino," Weidner said, adding he's open to developing the casino with a local partner. "Singapore's a dynamic city and it could be an extraordinary casino destination."

Las Vegas Sands is owned by Sheldon Adelson, who bought the Sands Hotel & Casino in Las Vegas -- a former hangout of Frank Sinatra and the "Rat Pack" -- in 1989. He built a convention center the following year and in 1995, he sold his convention business, including the Comdex technology show, to Softbank Corp. for $860 million, the company said in its Web site.

Adelson then built the $1.5 billion Venetian, modeled after Italy's Venice including a replica of the Rialto Bridge, canals and singing gondoliers.

The Venetian has one of the highest full-year occupancy rates in Las Vegas, at 98.7 percent, Weidner said. The hotel, which has 4,049 suites, charges an average rate of $214 a night.