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Tan Sri Vincent Tan, Berjaya Corp Bhd (BCorp) founder, has applied for a casino license and he’s hoping that the second time around he’ll get the green light. However, industry observers believe the chances of him succeeding will be slim. Analysts polled by StarBiz voiced consensus that the Government was unlikely to grant any new casino licence, given the existing socio-political climate in Malaysia.
“Under the current environment, we think the possibility of the Government granting a new casino licence is very remote,” a gaming analyst said.
“We expect the idea of having a second casino in the country itself to attract strong opposition from various groups, and that the authorities would likely bow to such pressure,” she explained, recalling the incident in 2010 when the Government withdrew a sports betting licence granted to Ascot Sports Sdn Bhd – a company jointly owned by Vincent and his son Datuk Robin Tan – due to intense public opposition.
Vincent told a local daily early this week that he would apply for a licence to operate a casino at Berjaya Hills Resort in Pahang.
The tycoon has plans to invest up to RM3bil to set up a casino complex, complete with indoor and outdoor theme parks, food outlets, retail outlets, hotels, a convention centre and holiday homes in the resort area, which is owned by BCorp.
Although Vincent has resigned from BCorp to give way to his son Robin, he remains the single largest shareholder in the group with a 23.74% stake.
His first attempt at securing a casino licence more than 10 years ago was rejected due to protests from various social groups.
At present, the Genting group remains the sole casino operator in Malaysia.
“A lot of politics is involved when it comes to issuing a casino licence; at this juncture, we remain sceptical of Vincent’s ability to secure a new casino licence,” an analyst said.
“But if Vincent can indeed secure a licence to operate a casino at Berjaya Hills, that would pose a threat to the Genting group. But then again, we also have to look at what his proposed integrated resort has to offer,” he explained.
BCorp gained 1.5 sen to close at 51.5 sen on active trade, with 24.42 million shares changing hands.
According to analysts, there is an aspiration among gaming business players to operate a casino because of the lucrative gains.
“When we talk about casinos, we don’t just look at the local market.
“We compare them with Singapore and Macau that are fighting hard for customers from China, especially the high-rollers. Casino operators are not aiming for the mass market, which does not really drive earnings,” an analyst said.
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