Melco Crown Entertainment Ltd has upped the ante against its casino rivals to win the chance to build a casino resort in Japan, declaring there is no limit on how much the company is prepared to invest.
“This opportunity is priceless and we’ll spend whatever it takes to win,” chief executive officer Lawrence Ho (何猷龍) said yesterday in a briefing at a CLSA Ltd conference in Tokyo.
The billionaire said the investment amount will depend on the host city, and his top choice for a casino resort is Osaka, where Melco has done more planning.
ULTIMATE OPPORTUNITY
Ho’s comments followed those of fellow casino tycoon Sheldon Adelson, who declared Japan as the ultimate business opportunity for his Las Vegas Sands Corp, and where he could spend as much as US$10 billion building an integrated resort.
Japan legalized casinos in December last year, drawing the interest of global gaming operators to a market CLSA predicts could be worth as much as US$25 billion.
MGM Resorts International chief executive officer James Murren, speaking at the same event, touted the Las Vegas-based operator’s size and clout in bringing in entertainers, and said it was hiring more staff to explore gaming options in Japan.
NOT TACKY
Lawrence Ho, whose father Stanley Ho (何鴻燊)is a Macau gaming legend who held the territory’s casino monopoly for decades, took a dig at the design choices of operators in Las Vegas and in Macau, where four of Melco’s properties are located.
Those will not be a good fit for Japan, he said.
“If you put up some of the tacky buildings that you have in Las Vegas or Macau here it would look out of place. Can you imagine the Venetian here?” he said in a speech to investors at the CLSA conference.
Sands, the world’s biggest gaming operator, has casinos in both cities that are named the Venetian.
“It’s important we work with government authorities,” the 40-year-old Lawrence Ho said. “Ultimately what makes an integrated resort successful is how we work with communities.”
Hong Kong-based Melco would ideally want to own a majority stake in any tie-up with local partners, but the company would keep an open mind on the structure, he said.
Similarly, MGM prefers working with Japanese partners rather than have full ownership of a project, according to Murren.
PROFILE
Osaka “really has that fun element” and fits the entertainment profile that Melco is keen on, said Lawrence Ho, whose company operates the US$3.2 billion Hollywood-themed Studio City resort that opened in Macau in 2015.
Melco sees its role as helping expand Japan’s tourism, he said, adding that he is “shocked” that the country attracts only about 20 million tourists a year.
That is compared with the 30 million who visit Macau.
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