So how do you go about gaining a casino licence from an increasingly dodgy government? Very carefully, no doubt.
No, not New South Wales, but Sri Lanka and the Philippines,
countries where James Packer’s Crown either wants to or is building a
casino.
Packer officially launched his $400 million Sri Lankan ambition overnight on the
eve of the Commonwealth Heads of Government meeting
with a pitch similar to the story that had the NSW government in his
pocket as soon as Barry O’Farrell heard it – a promise of untold wealth
flowing from international tourism. In Sri Lanka, it’s supposed to be
millions of rich Indians wanting to fly in to give Crown money, while
Sydney has been promised squadrons of Chinese whales. The model is Macau
where Chinese gamblers pour across the border, an interesting
percentage of them corrupt officials laundering money in some of the
city’s many casinos.
Last weekend’s Economist magazine left Packer’s name out of it
while detailing Sri Lanka’s problems ahead of CHOGM, but did mention:
“In a building near the beach, a casino operator sinks into a
monstrous armchair and gushes about Colombo’s gambling potential. His
planned venture with an Australian investor includes a 450-room
“five-star-plus” hotel to lure high-rollers from China, India and the
Gulf. For now, blank-eyed tourists make do in dreary halls, playing
roulette under fluorescent lights. But he, like all the ruling elite, is
in a rush.”
The ambitions of Sri Lanka becoming India’s Macau must be somewhere a little further in the future. Right now the
Indian Prime Minister is snubbing his neighbour’s CHOGM
– relations remain strained by Sri Lanka’s treatment of ethnic Tamils,
never mind the suspected war crimes committed on civilians while
crushing the Tamil Tigers. (The Canadian Prime Minister is boycotting
the meeting because of Sri Lanka’s human rights record, the Australian
Prime Minister is attending without any apparent reservations.)
As the Economist summarised it, since the mistake was made to
hold CHOGM in Sri Lanka, the country has “drifted towards more
authoritarian rule, dominated by a single family, led by Mahinda
Rajapaksa, the president”. In other words, the Rajapaksa clan has turned
government into a family business.
“The Rajapaksas’ ruling coalition, with a two-thirds majority
in Parliament, tightens its grip,” reports the magazine. “It has pushed
through constitutional changes—scrapping presidential term limits, and
abolishing independent police and electoral commissions—to centralise
power. Judicial restraint is weak, notably after the peremptory sacking
of the country’s chief justice earlier this year.”
While the Rajapaksas deny there’s any corruption in the system,
the Transparency International global corruption index has Sri Lanka coming in 79
th out of 176 countries with a score of 40 out of 100, one rung above China. (Australia was 7
th with a score of 85.)
“Since Sri Lanka has scored below 50, it is apparent that the
country is yet among those who were unable to minimise the level of
corruption in the public sector,” observes Transparency.
It could be worse – it could be the Philippines languishing in 105
th place on 34.
Last year Wynn Resorts cited corruption as the main reason
for rejecting repeated requests from its biggest shareholder, Kazuo
Okada, to form a joint venture in the Philippines. The Wynn board
accused Mr Okada of making improper payments to gambling regulators in
the Philippines.
“The board’s move came after an internal investigation
conducted by a former FBI director found him to be “unsuitable” based on
the company’s internal regulations,”
reported the Wall Street Journal.
But James Packer has declared his confidence in the integrity
of the Philippines gaming market. His Melco Crown arm is in a joint
venture with the Philippines’ richest man to build a billion dollar
casino in Manila. In July he told the Australian’s Damon Kitney:
"At the end of the day (Genting chief executive) KT Lim is up
there. The Singapore government has given this a tick from a probity
sense. And Singapore has the toughest probity in the world. That gives
me confidence," Mr Packer told The Australian.
"And we (Melco Crown) have 100 per cent management control.
We know what we are doing and we are not doing anything differently to
Australia or Macau."
Kitney reported that it was understood questions from
regulators about the Philippines' gaming market were one of the factors
that delayed Packer's Crown clearing probity in Sydney and Brisbane
earlier this year and that casinos and internet gaming were excluded
from tough new anti-money laundering laws at the request of the state
regulator Philippine Amusement and Gaming Corporation because of
concerns it may deter foreign investors.
Last month the AFR reported that the Philippines casino was being re-branded as City of Dreams Manila.
“The new City of Dreams will include mass market and VIP
gaming facilities,” said the AFR.” As a result of negotiations with
PAGCOR, the complex is expected to operate 365 gaming tables, 1680 slot
machines and 1680 electronic table games. This is a significant increase
on the 242 tables and 1450 machines and electronic table games
combined, which were previously expected to be licensed.”
It was previously known as Belle Grande. Belle Corporation is
Melco Crown’s joint venture partner, a subsidiary of SM Group which was
founded by Henry Sy, ranked by Forbes as the Philippines’ richest man.
Becoming and remaining the Philippines’ richest man must be an
interesting process.
smh.com.au 15 Nov 2013
Another corrupt businessman put on the pedestal by the corrupt government and police.
Packer is involved in drug distribution worth millions of dollars annually a fact that the authorities are turning a blind eye to.
These people are part of the untouchable elite with full support of corrupt politicians, law makers, and police, including the taxation department.
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