SINGAPORE: Casino operator Genting International has avoided what was shaping up to be an embarrassing clash with the Singapore government over a licence to operate a casino resort on Sentosa island.
Genting has agreed to buy sister company Star Cruise’s 25 per cent stake in the Sentosa project – expected to open in 2010 – for US$168 million to obtain full control over the project.
Singapore’s Ministry of Home Affairs cautioned Genting last month that there was no guarantee it would qualify for a gaming licence despite winning the bid to build the US$3.4 billion Resorts World casino resort on Sentosa, and that the company and its associates would have to prove they could run a clean gambling venue.
Singapore’s concern was Genting’s business association with casino czar Stanley Ho, who has extensive interests in Macau’s gaming empire.
Genting had hoped to enter the casino business in Macau in return for giving Ho and other investors a seven per cent stake in Star Cruises, which had 25 per cent of the Sentosa resort project.
Earlier this month, Genting said it would sell its share in a Macau investment to Star Cruises. And now that Star Cruises is selling its share of the Singapore casino-resort, Genting believes has cut all connections to Ho.
