March 29, 2016 10:59
Indonesia's Lippo Group is pulling out of a planned international gambling resort on Yeongjong Island near Incheon International Airport.
Lippo had promised to invest W2.3 trillion by 2022 in LOCZ Korea, a joint venture it set up with U.S. casino operator Caesars Entertainment to build the gambling resort, which is to include a hotel and convention center (US$1=W1,167).
Two other casino resort projects are also underway on Yeongjong by consortiums between U.S. Mohegan Sun and Korea's KCC and Japan's Sega Sammy and Korea's Paradise.
But Lippo said in a recent filing to the Hong Kong Stock Exchange, "In light of the current outlook for the gaming industry in North Asia and the volatility of the global economy, the group is in discussions with Caesars for some alternatives which may include the possibility for a third party investor to acquire the group's interest in the project."
Lippo has a 60-percent stake in LOCZ Korea and Caesars the rest.
Lippo and Caesars were awarded the operating license in March 2014.
An industry insider said Lippo is apparently worried that China's ongoing crackdown on corruption will reduce demand from Chinese high rollers.
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