Genting to buy stake in Singapore casino

In a statement issued late Tuesday, Genting said the purchase from its sister company would give it full control over the casino project on Singapore’s Sentosa Island, expected to be completed in 2010. Star Cruises earlier this month withdrew from the investment. "It would also potentially help to simplify (Genting’s) application process for a casino license," the statement said.

Singapore’s Ministry of Home Affairs warned Genting last month that there was no guarantee it would qualify for a gaming license despite winning the bid to build the casino resort, and that the company and its associates would have to prove they could run a clean gambling venue.

Singapore was apparently concerned over Genting’s business tie-up with casino baron Stanley Ho, one of the most powerful men in Hong Kong and Macau, a gambling enclave with a reputation for organized crime. Ho was suspected of having had ties with organized crime gangs when the territory was still under Portuguese control.

Earlier this month, Genting said it would sell its share in a Macau investment to Star Cruises. And now that Star Cruises is selling its share of the Singapore casino-resort, Genting has severed all connections to Ho. Genting and Star Cruises are both units of Malaysian gambling group Genting Bhd.

Singapore legalized casino gaming in 2005 and said it would allow two casino resorts to be built. The first was awarded to Las Vegas Sands Corp., which plans to open its us$ 3.6 billion Marina Bay Sands resort by July 2009.

Genting’s Resorts World at Sentosa is expected to be operating by 2010.