Launching a pre-emptive strike on the Indian subcontinent, the government of Sri Lanka has gone into casino gambling in a big way. It’s approved a $350 million “mixed development” (that’s what casino-hotels are called over there) by James Packer‘s Crown Ltd. The 400-room resort contemplated by Packer could get pricier still. However, it enjoys lakefront siting and an astoundingly “george” deal whereby all hotel taxes are waived for 10 years. And, once the tax holiday expires, the rate will still be 50% of that to which other Sri Lanka hotels are subject, for another 15 years.
Despite a much larger budget ($650 million and rising), John Keells Holdings had to settle for the second-choice site. The governmental burden of expectation on Crown and Keells is hardly fair. They’re expected to effect a 150% increase in tourists in less than three years. Somebody must have gone on a ‘fact finding’ expedition to Macao and spent it in an opium den. The government’s target player base is VIPs from China, so this new venture — however exciting — is not without its quixotic aspects.
Regulators in Nevada are venturing into uncharted waters as they contemplate 
turning intrastate Internet gaming into a de facto form of interstate wagering. Bally Technologies and International Game Technology want to offer progressive jackpots that are shared between multiple states. It’s a bit out there, as Nevada Gaming Control Board Chairman A.G. Burnett acknowledged, a first step towards interstate Internet poker. If one were trying to jolt the federal government into activity, this would be the way to do it.
In the meantime, regulators solemnized a mismatched wedding. Treasure Island is pairing with Golden Gaming, titan of the Pahrump market, to offer cyber-gambling via 888 Holdings. Since Golden owns 40 taverns and a number of slot routes, this is the next best thing to sweeping new players into your database off the barroom floor. It’s described as “unique” and “welcome,” and I kinda wish I’d thought of it myself.
Cosmetics mogul Ron Perelman is one step closer to owning WMS Industries. Perelman, who owns 38% of Scientific Games, is undoubtedly wiser for having put his 
money into manufacturing rather than staking it on a destination resort. As we’ve seen often in the past, the latter can so easily go wrong. Perelman’s surrogates are talking out of both sides of their mouths, touting the cost-saving “synergies” of which Wall Street is so skeptical and simultaneously pointing out that each company’s product line is complementary. They don’t make it sound like there’s much overlap to eliminate. In any event, I don’t think the NGCB really cares.
