City of Dreams Manila, the $1.3-billion integrated resort, property of gambling operator Melco Crown, will finally have its official opening tomorrow, February 2. It was reported that actors Leonardo DiCaprio and Robert De Niro will attend the lavish opening ceremony.
The two Hollywood stars can be seen in a short film directed by Martin Scorsese, which aimed at promoting the Philippines’ newest gambling and hotel venue.
City of Dreams Manila is Melco Crown’s first endeavor outside Macau. The gaming operator saw in the Philippines an excellent chance to expand its business in other Asian countries.
The launch of City of Dreams Manila comes as Crown was denied the opportunity to build a casino venue in Sri Lanka. The gaming company has also expressed interest in investing in Japan, although the country is still refusing licenses to foreign operators.
Australia-based Crown, managed by local businessman James Packer, owns 33.6% of Melco Crown Entertainment. The latter company is actually product of the collaboration between Packer and Hong Kong-based magnate Lawrence Ho.
City of Dreams Manila is the second resort to be launched in the so-called Entertainment City, located not far from the capital of the Philippines. Mr. Packer pointed out that they believe the new venue will attract local players as well as VIP customers from Mainland China and other Asian countries.
Last year, it was reported that a total of $2.2 billion were generated from gambling activities.
Sudhir Kale, an Asian gambling analyst and a professor at Bond University, predicted that revenues from gambling activities might double to $4.5 billion in the years to come, as Entertainment City is expected to turn into a major gambling destination.
Mr. Kale also commented on the fact that Packer and Ho found the Philippines attractive due to the fact that revenues are charged with a modest 15% tax. By comparison, owners of casinos in Macau are supposed to pay a 39% tax.
The gambling expert stated that the market in the Philippines will probably be smaller than that in Macau. Yet, it will be the fastest growing one in Asia in the course of the next few years. According to Mr. Kale, it might grow between 15% and 17%. As for Macau’s gambling market, it is expected to mark an 8% to 10% growth.
The analyst also pointed to the fact that Melco Crown’s investment in Manila is less impressive than that in Macau. There, the company manages the $1.5-billion City of Dreams, located on the Cotai Strip, the so-called Altira casino, and the $3.2-billion Studio City, an entertainment and gaming complex, which is set to open doors sometime in 2015.
Mr. Kale also focused his attention on the fact that Melco Crown has already established strong connections with Asia’s best junket operators. The gaming expert believes that the ongoing corruption crackdown in Mainland China might lead to VIP players’ withdrawal from the Macau market.
In other words, Chinese VIP players who do not want to be seen wagering in Macau will be most welcome to do so in Manila.
City of Dreams Manila will offer 1,700 poker machines, 1,700 electronic table games, and 380 gaming tables to both mass market and VIP players.
