Wynn’s resort in Singapore could cost $1.5 billion

Linus Chua

Tuesday, March 15, 2005 | 9:32 a.m.

Wynn Resorts Ltd., the Las Vegas-based casino company led by Steve Wynn, proposes spending as much as $1.5 billion to build and operate a casino resort in Singapore, its president said.

The proposal, one of 19 competing for government approval, will be an "iconic" design that would cost more than twice the $700 million earmarked for a casino it's building in southern China's Macau, Ronald Kramer, 46, said in a telephone interview.

Wynn Resorts, MGM Mirage and Las Vegas Sands Inc. are among companies seeking favor before the government decides whether to end its ban on casinos in April. Wynn, the developer of Las Vegas's Mirage, known for a man-made "volcano" that would erupt nightly and spill fake lava, may need to modify his designs to suit Singapore, analyst Jonathan Galaviz said.

"Stephen Wynn is an artist," said Galaviz, a partner of Galaviz Ong & Co., which tracks the global gaming industry. "The quandary is whether Stephen Wynn is able to convert his casually elegant Las Vegas-oriented architecture to the kind of design architecture that the Singapore government is seeking."

The Singapore design will be consistent with the "contemporary" design of the $2.7 billion resort Wynn Resorts is opening in Las Vegas next month, Kramer said. He said the Singapore development will complement other properties in the city, declining to elaborate for competitive reasons.

"Singapore's a world financial capital," Kramer said. "So, we are looking at how we can build something where we can distinguish the gaming product as part of the skyline."

Wynn sold Mirage Resorts Inc. to billionaire Kirk Kerkorian five years ago after the $1.7 billion Bellagio failed to achieve the expected returns. He since formed Wynn Resorts, shares in which have almost doubled in the past year, giving it a market value of $7 billion.

The Bellagio design has been featured on a Singapore government Web site set up to draw feedback on the casino plan. Other resorts featured on the site include Las Vegas Sands Corp.'s Venetian and Kerzner International Ltd.'s Atlantis in the Bahamas.

Still, "the Singapore government has clearly stated that no Las Vegas-oriented architecture would be considered acceptable," Galaviz said, noting Wynn would have to satisfy other "non-architecture related criteria."

Harrah's Entertainment Inc. has said it will use its Caesars brand if it wins the franchise, pledging to make Singapore its regional headquarters if it succeeds. It has also underlined its experience running social programs to reduce problem gambling, aiming to ease concerns about the risks a casino may carry.

Singapore said that on April 18 it will announce its final decision on whether to allow a casino to be included in a convention and entertainment center. The design will be a critical factor when it awards the project.

In Singapore, the government has offered two sites, a waterfront downtown property and a tourist resort island south of the city. Bidders can choose to bid on one or both sites. Wynn's bid only included the downtown site because it expects the location to generate "the level of excitement and entertainment" needed for a casino in the city, Kramer said.

Harrah's Entertainment and MGM Mirage, Wynn's two biggest rivals, have both linked with Singapore companies in their bids.

"Our point of view is if there's going to be gaming in Singapore, it's about having the best design, and not the right local partner," Kramer said.