Belle confirms talks with Harrah's on P14-billion project

MANILA, Philippines - High-end leisure estate developer and gaming firm Belle Corp. confirmed yesterday it is in talks with Harrah’s Entertainment Inc. for its planned P14-billion casino complex along Manila Bay.

In a disclosure to the Philippine Stock Exchange, Belle said its subsidiary, Premium Leisure & Amusement Inc. (PLAI) is “in the process of negotiating with several casino operating partners, among which is Harrah’s Entertainment Inc.”

Belle, now majority owned by retail magnate Henry Sy, said none of such negotiations, however, have been concluded to date.

Informed sources said top officials of Harrah’s – the world’s largest casino operator – were in Manila last week to explore the possibility of investing in the Philippines.

“From what I’ve heard, Harrah’s is sizing up opportunities in the Philippine gaming market.  They seemed very much interested in investing here. They think the Philippines would be a phenomenal market for them to open a casino,” the source said.

PLAI  is part of a consortium of companies earlier granted a provisional license by state-run Philipine Amusement & Gaming Corp. to take part in the 800-hectare Bagong Nayong Pilipino Manila Bay Entertainment City.

It holds the gaming component of the multi-billion peso gaming and leisure project.  Together with the SM Group, Belle has committed to inject $1 billion into the project over a 25-year period. Of the $1 billion total investment commitment, P14 billion will be spent for the planned casino complex.

The SM Group will provide the entertainment facilities which include hotels, a sports arena, museum and an oceanarium.

The project, when completed, is expected to boost Belle’s cash flow.  Belle’s crown jewel to date is its flagship 1,500-hectare Tagaytay Highlands.  It also generates equity earnings from Pacific Online Corp. the exclusive online lottery systems provider in Visayas and Mindanao, as well as from upscale property firm Highlands Prime Inc.

Harrah’s, with yearly revenues of $10.8 billion,  owns and operates about 50 casinos under the brand names Bally’s, Caesars, Harrah’s, Horseshoe and Rio. It also owns the London Clubs International family of caisnos and the World Series of Poker.

Harrah’s was incorporated on Oct. 30, 1937 as a small bingo parlor.  Since then, it has grown leaps and bounds through acquisitions and expansions.  Its most significant acquisition was the purchase of its rival firm Caesars Entertainment in 2005 as this allowed it to become the dominant player in the global gambling market. 

The same sources said Belle was reportedly tapping publicly-listed Leisure & Resorts World Corp. as the holder of the management contract for the gaming component of the project. 

LRWC was the market’s fourth gainer yesterday, rising 11 percent to P2 each share.  A total of 3.46 million shares changed hands valued at P6.9 million. Belle likewise went up 3.4 percent to close at P1.80 apiece.

LRWC provides professional bingo gaming through Bingo Bonanza Corp and owns First Cagayan Leisure and Resort Corp. (FCLRC), which has an existing license agreement with the Cagayan Economic Zone Authority (CEZA) to develop, operate and conduct internet and gaming enterprises and facilities in the Cagayan Special Economic Zone Freeport.

FCLRC receives and processes applications for and issues interactive gaming licenses as well as regulates and monitors all operators of internet gaming in the Cagayan Special Economic Zone Freeport. LRWC also owns 30 percent of Binondo Leisure Resort Inc., a company engaged in hotel and recreation business.

The  Nayong Pilipino Entertainment City will house an integrated resort with a world-class theme park, residential areas, shopping malls, fine dining restaurants, and other leisure activities.