By KATE O’KEEFFE, Dow Jones Newswires
Macau casino operator Melco Crown Entertainment Ltd. still doesn’t have permission to build a casino at its latest project, according to a revised government contract published Wednesday.
The Macao Studio City project, in which Melco Crown has a 60% equity interest, is designated for a five-star hotel and film facilities, indicates the latest government contract detailing various revisions to the agreement. But the document doesn’t mention any casino facilities despite the company’s earlier statements they hope to open up to 400 gambling tables at the property. It’s possible the government could give the green-light on a casino later, but the uncertainty could complicate the company’s efforts to finance the project.
Melco Crown, backed by Lawrence Ho and James Packer—the sons of Macau gambling tycoon Stanley Ho and the late Australian casino-and-media magnate Kerry Packer—is one of six casino license holders in Macau, where it already runs two casino-resort properties in the world’s largest gambling hub.
A representative for Melco Crown didn’t respond to requests for comment.
In June 2011, Melco Crown signed a $360 million deal to gain control over the Macao Studio City project, resolving a bitter dispute between the project’s earlier partners that had escalated to the Hong Kong courts, stalling development for years. New Cotai Holdings LLC, an arm of U.S. investment firms Oaktree Capital Management L.P. and Silver Point Capital L.P., retained its 40% stake in the project.
Earlier this month Melco Crown announced plans to enter the burgeoning Philippines market by teaming up with local property developer Belle Corp. to partner on a casino resort that will cost at least $1 billion in an area the Philippines hopes will become Manila’s version of the Las Vegas Strip.
