Forbes – The Philippines hopes to be the next big thing in Asian gaming, and its biggest step toward that goal just completed its first year of operation. Solaire Resort and Casino opened in March last year (see page 77; payment required), the first of four planned US$1 billion-plus integrated resorts (IRs) in Entertainment City on Manila Bay.
Solaire’s parent company Bloomberry Resorts this month released its full year results for 2013, as did its current main rival, Resorts World Manila, where ownership also holds a license for an Entertainment City IR. But the results sow doubts about building more IRs in the Philippines.
Bloomberry reported a loss in Philippine pesos for the year equivalent to US$29 million. For Solaire’s nine and a half months of operations, the loss was nearly US$6 million. Bloomberry blamed the red ink largely on “mistakes and inefficiencies” by consultant Global Gaming Asset Management (GGAM), headed by former Las Vegas Sands president and chief operating officer William Weidner. Bloomberry fired GGAM in September (see page 93), with charges and countercharges following. The breakup is now in arbitration in Singapore, and Bloomberry obtained a Philippine court order to stop GGAM’s US$166 million deal to sell its 8.7% stake in the Manila traded company until arbitrators issue their decision, which will likely take years.
