Packer ponders bet on move into Sri Lanka
A Crown spokesman declined to comment about potential investments in Sri Lanka but there is no denying Mr Packer's growing interest in the country. He has visited Sri Lanka three times since late February, discussing investment options with ministers.
"They have not finalised the area and the amount they are going to invest. The government has asked them to come up with a proposal," Lakshman Yapa Abeywardena, Sri Lanka's Minister of Investment Promotion, said after Mr Packer's latest visit this month. "The government proposed [for] them to invest in a large city hotel in Colombo and go to [the eastern city of] Trincomalee to look into possible investment opportunities."
Treasury Secretary P. B. Jayasundera said Mr Packer had expressed an interest in "integrated tourism", which typically includes hotels, casinos and other entertainment.
Crown sources have denied reports from Sri Lanka that the Packer-controlled casino group has already acquired land in Colombo to build a casino resort.
According to local reports, Crown agreed to spend $US350 million to build Crown Colombo, which will be open for business in 2016.
The country, which is still recovering from a devastating civil war, has set up legalised gambling zones and introduced tax concessions to attract foreign investors.
Crown is not the only casino group showing interest. Sheldon Adelson's Las Vegas Sands is reportedly exploring investment options in Sri Lanka after being rebuffed by India.
And MGM Resorts and Caesars Entertainment have also been in talks with Indian group Delta Corp, which owns a casino in Colombo and several more in India.
India's gambling market is limited to two states, Goa and Sikkim, and laws prevent direct foreign investment. As with China's gambling enclave, Macau, it is India's resistance to gambling on the subcontinent that is expected to allow Sri Lanka - just a four-hour flight from India's major cities - to thrive as a gambling hub.
If Mr Packer decides to invest in Sri Lanka, it is not clear whether this would be conducted through Crown directly or via its Asian joint venture, Melco Crown Entertainment, which operates in Macau and the Philippines.
Frequently Asked Questions about this Article…
According to the article, James Packer has shown growing interest in Sri Lanka and has discussed investment options with ministers. Sri Lanka has pitched opportunities in “integrated tourism,” which typically includes hotels, casinos and other entertainment, and has proposed investments such as a large city hotel in Colombo and opportunities in Trincomalee.
The article says Mr Packer made three trips to Sri Lanka in the space of six weeks, signaling a clear interest in exploring investment opportunities. For everyday investors, repeated visits by a major industry figure can indicate serious preliminary talks and potential future projects that could affect related stocks and regional tourism investments.
Crown sources have denied reports that the Packer-controlled casino group has already acquired land in Colombo. A Crown spokesman declined to comment about potential investments in Sri Lanka, although local reports have suggested a US$350 million Crown Colombo project planned to open in 2016.
Local reports cited in the article said Crown agreed to spend about US$350 million to build a Crown Colombo resort, with an expected opening in 2016. However, Crown sources denied land acquisition and a spokesman declined to comment, so those figures were reported but not officially confirmed.
The article explains that India’s gambling market is limited to Goa and Sikkim and that laws prevent direct foreign investment in many parts of India. Because Sri Lanka is close to India—about a four-hour flight from major Indian cities—and has set up legalised gambling zones plus tax concessions for foreign investors, it’s being positioned as an alternative gambling hub for the subcontinent.
Besides Crown (James Packer), the article names Sheldon Adelson’s Las Vegas Sands as reportedly exploring Sri Lanka after being rebuffed by India. MGM Resorts and Caesars Entertainment have also been in talks with India’s Delta Corp, which owns a casino in Colombo and operations in India.
The article notes it is not clear whether any investment by Mr Packer would be made directly through Crown or via his Asian joint venture, Melco Crown Entertainment, which operates in Macau and the Philippines. No final decision or structure was confirmed.
According to the article, Sri Lanka has set up legalised gambling zones and introduced tax concessions to attract foreign investors as it seeks to grow tourism and gaming investment in the post-war recovery period.
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