KUALA LUMPUR: The Genting group may have to work harder or change its approach in obtaining a casino licence in Miami. Decision-makers came away reportedly unconvinced the casino operator could deliver on its many promises and forecasts presented at a debut debate session last Wednesday.
Genting Americas’ blunt-speaking president Colin Au said Miami’s three mega casino resorts could collectively rake in between US$4.3 billion (RM13.6 billion) and US$6 billion gambling revenue a year, higher than the US$5.7 billion the Las Vegas Strip took in last year, according to a Miami Herald report dated Nov 16.
Numbers like US$1.7 billion new revenue for the state were cited from an economic study Genting commissioned, which assumes that the two other casinos would be as big as Genting, which is looking to have a casino space that is nearly four times Vegas’ largest.
Las Vegas Sands president Andy Abboud raised doubts at the meeting, pointing out that state economists think the number is closer to US$980 million a year. Legislators should take a “cautious, go-slow approach”, on the matter, Abboud reportedly said.
Senator Ellyn Bogdanoff, a sponsor of the casino bill, is among the unconvinced. “They [Genting] actually kill their own case because, based on what they want to do, they’re going to put all the pari-mutuels out of business and every restaurant in Miami — and a couple of hotels too,” the Miami Herald quoted her as saying.
Genting’s numbers for the economic potential of three mega-resorts proposed in her bill “are over the top”, she said, urging Genting to scale back its planned 5,200 rooms to a more modest 750 rooms.
But Genting’s Au rubbished criticism, saying lawmakers could always “just cancel the licence” if promises aren’t delivered.
“I can assure you, Senator, when we are up and running, you will find the impact of these three destination resorts to be even larger than Singapore,” Au reportedly said, citing the benefits Singapore’s economy saw last year after allowing two casino resorts.
“We do not eat people’s lunch. We create lunch, dinner, breakfast for everybody,” Au said, adding that the four million to six million new visitors to South Florida would give the incumbent Seminole tribe a 20% to 40% jump in revenue, while the smaller pari-mutuels would see a 50% to 100% jump in business.
“We will guarantee half the seats of non-stop flights from the Asia-Pacific [to Miami],” Au reportedly told the committee. “I’m even prepared to guarantee Disney 100,000 tickets that we will sell for them in our resort.”
Walt Disney World, which is located at Orlando, north of Miami, is reportedly among those opposed to expanding gaming in Florida.
But even Miami mayor Tomas Regalado — who was earlier seen as supportive of Genting’s plans, having presented Genting chairman Tan Sri Lim Kok Thay with a key to the city in June — came away hedging his bets, saying he needs more time and information before deciding on which way to vote.
“I believe that your proposed project may be one of the best things that ever happened to our community — or the worst. It is too early in its planning to tell,”’ Regalado reportedly wrote in a letter to Lim, even as neighbourhood interest groups raised questions over everything from negative social impacts, cannibalising of existing businesses to traffic woes.
In a separate interview, Regaldo told the Miami Herald Genting’s Resorts World Miami project wouldn’t be too large for the city as long as it can address traffic problems and other potential strains on the city’s services.
That said, Genting has at least won over the Latin Builders Association, a South Florida trade group, who endorsed the casino plan earlier this week. Others who have reportedly voiced opposition include billionaire businessman Norman Braman and University of Miami Professor Greg Bush, president of the Urban Environment League, who is reportedly attempting to energise grass roots community opposition.
Genting has another chance at swaying votes next month. The Senate Regulated Industries Committee is scheduled to hold a second workshop on the issue in December before taking a vote on the bill during the first week of the legislative session in January, the Miami Herald said.
This article appeared in The Edge Financial Daily, November 21, 2011.
Genting Americas’ blunt-speaking president Colin Au said Miami’s three mega casino resorts could collectively rake in between US$4.3 billion (RM13.6 billion) and US$6 billion gambling revenue a year, higher than the US$5.7 billion the Las Vegas Strip took in last year, according to a Miami Herald report dated Nov 16.
Numbers like US$1.7 billion new revenue for the state were cited from an economic study Genting commissioned, which assumes that the two other casinos would be as big as Genting, which is looking to have a casino space that is nearly four times Vegas’ largest.
Las Vegas Sands president Andy Abboud raised doubts at the meeting, pointing out that state economists think the number is closer to US$980 million a year. Legislators should take a “cautious, go-slow approach”, on the matter, Abboud reportedly said.
Senator Ellyn Bogdanoff, a sponsor of the casino bill, is among the unconvinced. “They [Genting] actually kill their own case because, based on what they want to do, they’re going to put all the pari-mutuels out of business and every restaurant in Miami — and a couple of hotels too,” the Miami Herald quoted her as saying.
Genting’s numbers for the economic potential of three mega-resorts proposed in her bill “are over the top”, she said, urging Genting to scale back its planned 5,200 rooms to a more modest 750 rooms.
But Genting’s Au rubbished criticism, saying lawmakers could always “just cancel the licence” if promises aren’t delivered.
“I can assure you, Senator, when we are up and running, you will find the impact of these three destination resorts to be even larger than Singapore,” Au reportedly said, citing the benefits Singapore’s economy saw last year after allowing two casino resorts.
“We do not eat people’s lunch. We create lunch, dinner, breakfast for everybody,” Au said, adding that the four million to six million new visitors to South Florida would give the incumbent Seminole tribe a 20% to 40% jump in revenue, while the smaller pari-mutuels would see a 50% to 100% jump in business.
“We will guarantee half the seats of non-stop flights from the Asia-Pacific [to Miami],” Au reportedly told the committee. “I’m even prepared to guarantee Disney 100,000 tickets that we will sell for them in our resort.”
Walt Disney World, which is located at Orlando, north of Miami, is reportedly among those opposed to expanding gaming in Florida.
But even Miami mayor Tomas Regalado — who was earlier seen as supportive of Genting’s plans, having presented Genting chairman Tan Sri Lim Kok Thay with a key to the city in June — came away hedging his bets, saying he needs more time and information before deciding on which way to vote.
“I believe that your proposed project may be one of the best things that ever happened to our community — or the worst. It is too early in its planning to tell,”’ Regalado reportedly wrote in a letter to Lim, even as neighbourhood interest groups raised questions over everything from negative social impacts, cannibalising of existing businesses to traffic woes.
In a separate interview, Regaldo told the Miami Herald Genting’s Resorts World Miami project wouldn’t be too large for the city as long as it can address traffic problems and other potential strains on the city’s services.
That said, Genting has at least won over the Latin Builders Association, a South Florida trade group, who endorsed the casino plan earlier this week. Others who have reportedly voiced opposition include billionaire businessman Norman Braman and University of Miami Professor Greg Bush, president of the Urban Environment League, who is reportedly attempting to energise grass roots community opposition.
Genting has another chance at swaying votes next month. The Senate Regulated Industries Committee is scheduled to hold a second workshop on the issue in December before taking a vote on the bill during the first week of the legislative session in January, the Miami Herald said.
This article appeared in The Edge Financial Daily, November 21, 2011.
