Talks between Belle, Harrah's hit snag

MANILA, Philippines - Talks between Belle Corp./Leisure Resorts World Corp. and Harrah’s Entertainment Inc. over a possible partnership in a Manila casino complex, have hit a snag, reportedly over finance.

“Harrah’s is out. We have agreed to part ways as friends. We are grateful to Harrah’s for guiding us through the planning and development process of our integrated resort,” said Willy Ocier, chairman of Belle.

Informed sources said Harrah’s was not ready to put in equity into the casino project, making it impossible for both Belle and the Las Vegas-based firm to reach an agreement.

“They probably feel that our market is not big enough for four licensees,” Ocier said.

Aside from Belle, the Philippine Amusement and Gaming Corp. has also granted a provisional license to establish and operate a gaming and entertainment complex for the Bagong Nayong Pilipino Entertainment City are Travellers International Hotel Group, Japan’s Aruze Corp. and Bloombury Investments Holdings Inc.

Pagcor is banking on the multibillion dollar project to to turn the Philippines into one of Asia’s leading gaming and tourism destinations in the next decade. The project, which sits on reclaimed land in Manila Bay, will consists of hotels, theme parks, casinos, shopping malls and other recreational establishments.

Ocier said LRWC, its local partner for the gaming component of the integrated resort project, is evaluating prospective partners and expects to pick its choice by the end of the month.

Last month, LRWC said it was in talks with two other groups with strong foothold in Asia, particularly in Macau and Singapore to build the country’s largest casino complex, which is estimated to cost around $350 million.

Together with the SM Group, Belle has committed to inject $1 billion into the project over a 25-year period.

The gaming operation will be developed in three phases over a five-year period. The first phase will include the construction of the casino with around 100 VIP suites to cater to high-rollers. Two 15-story hotel towers of 500 rooms with a Planet Hollywood theme will eventually be built to complement the casino operations.

The Las Vegas style casino, which is targeted for opening in the third quarter of 2011, will feature 1,500 slot machines and 250 tables.