 Malaysia-based Genting Berhad has announced plans to build a $3 billion luxury resort casino in Miami, Florida. Florida is struggling to recover from the crippling U.S. recession and record-high unemployment and is in desperate need of new sources of jobs and tax revenues. The current law forbids casinos from expanding beyond those operated by the Seminole Indian tribe and select racetracks, but lawmakers are expected to pass a bill to liberalize Florida's gambling laws in the very near future. Analysts say Genting has the deep pockets and "patient capital" needed to start laying the groundwork for future business and they aren't afraid to risk millions for the chance to open the casino.
"I believe Miami is destined to become one of the greatest global cities in the world," Genting Chairman and Chief Executive KT Lim told a gathering of Miami business and civic leaders last week. "With planes now able to fly nonstop from Singapore and Hong Kong, Miami will soon connect Asia with the Americas."
Genting Malaysia Berhad announced last month that it was paying $236 million for a 14-acre (5.7 hectare) piece of waterfront property in the downtown Miami. The site which overlooks the azure waters of Biscayne Bay, could one day serve home to a luxury hotel, with convention, entertainment, restaurant, retail, residential and commercial facilities, and a grand casino.
During the press conference, Genting stressed that the project would create thousands of jobs but that whether or not it will feature a casino will depend on Florida's gambling politics.
Mike Speller, the New York-based president of Genting's Resorts World subsidiary, says the project, which has been dubbed Resorts World Miami, will move forward whether or not Florida changes its gaming laws anytime soon but that should legislation pass they will step up development.
"It would certainly shorten the period greatly that we would be able to build out the entire project because there would be that much more momentum," Speller told Reuters.
Legislation to bring five destination resorts to the state died in the legislature in March but a new piece on legislation that focuses strictly on South Florida is expected to be pushed through when a new legislative session opens in the fall.
"I think we've got a good shot to get it done during this 2012 session," said Nick Iarossi, lobbyist for Las Vegas Sands in Tallahassee.
"We've gotten some encouraging signs from key members of the legislature, on both sides of the House, as well as the governor's office. We're going to make an all-out effort to get it done this session."
"We're still obviously in kind of a recessive economy right now so it lends itself even more so to making game-changing decisions that will immediately inject billions of dollars of infrastructure investment into the state of Florida." he said.
"There's not a single piece of legislation that will be considered during the upcoming session that will create more jobs than this proposal," added Iarossi. He said Genting, Wynn Resort, MGM Resorts International, and Caesars Entertainment were all part of the recent lobbying effort in Tallahassee and will continue to be a part of lobbying efforts going forward.
Even should new gambling legislation be delayed, analysts say that Genting's could still turn a profit off of the purchase of its prime Miami waterfront site. Hong Kong-based Swire Properties recently announced that it would be pouring $700 million into the construction of a new urban centre on the south side of the Miami River, not far from Genting's property and the influx of Asian capital could draw more tourists from China and Southeast Asia, including many gamblers.
"It would broaden the tourist scope of the state." said Warwick Bartlett, chief executive of UK-based Global Betting and Gaming Consultants. "If you had the choice, Las Vegas or Florida to gamble, I think I'd go to Florida. Wouldn't you?"
As always, stay tuned to Casinofan for more news and updates.
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