There may not be Vegas-style casinos in Florida yet (at least not non-tribal ones) but Genting Bhd is taking a gamble of its own. While Sheldon Adelson talks about putting $3 billion into the Miami area, Genting is already doing it. CEO KT Lim has already plunked down $236 million ($17 million/acre) on waterfront land on Biscayne Bay. There, the Malaysian colossus intends to build Resorts World Miami and hope that casino legalization eventually makes the investment pencil out.
By actually sinking money into Florida now, Genting obviously hopes to trump the efforts of Las Vegas Sands, Wynn Resorts, Caesars Entertainment and MGM Resorts International, all of whom covet a piece of the action — but none of whom has done more than make promises at this point. MGM and especially Caesars would be very hard-pressed to match Genting’s capital commitment.
Legislators attempting to jump-start the casino-expansion proposal are now looking at a South Florida-only solution. However, that also means trying to cram would-be casino developers into many fewer counties. Hopefully that would spell the end of Sands’ ridiculous proposal for a 75-mile-radius “line of death,” er, zone of exclusivity. Indeed, Sands’ arrogant presumption that it would get juiced into Miami — along with Adelson’s decision to put his chips on Gov. Rick Scott (R, above), he of the 29% approval rating — looks primed to backfire. (Being under investigation by the SEC isn’t going to help much, either.) Much as he hates it, Sheldon’s probably going to have to share the sandbox with the other kids.
Ironically, both Genting and (presumably) Sands are pinning their hopes on the same thing: The advent of nonstop flights to Miami from Hong Kong and Singapore. The thought of Asian players leapfrogging Las Vegas to get to the Sunshine State must cause some queasiness along the Strip. But it helps Big Gaming make the case that it can deliver more than enough revenue to make up for what the Seminole Tribe already pays the state — dollars that Florida will have to forfeit as the price of expansion. That’s a high-stakes bet that lawmakers are being asked to place and if it’s a busted play, they’re the ones who’ll pay the consequences, not some suit in an office on Las Vegas Boulevard … or in Singapore.
Actually plunking money down for a specific real estate parcel sure beats upbeat speeches about gambling at some Chamber of Commerce event, but I doubt there will be an ceremonial turning of the first shovel of dirt on that parcel until the legislature changes the laws on casinos and also embraces craps, roulette and sports books. If Miami wants the Performing Arts center, the Convention Center, the several hotels, the stores … construction won’t start on those until its completed on the casino. Construction won’t start on the casino until the law changes.
Your excellent point reminds me that Sands’ promiscuous investment promises ($21 billion in Spain alone, billions more for Massachusetts, Japan and Texas, should casinos be legalized) could work against it in Florida. Genting has made a few, very focused stateside investments while Sands is literally all over the map, which might cause lawmakers to doubt the depth — if not the sincerity — of its Florida commitment.