The main investors in Lawrence Ho’s planned US0 million casino near Vladivostok are joining forces on a casino venture in the republic of Georgia.
MelcoLot, a lottery products and services provider in mainland China and a subsidiary of Ho’s principal investment vehicle, Hong Kong-listed Melco International Development, is teaming with Taiwan machine gaming manufacturer Firich Enterprises, also a MelcoLot investor, on the Caucasus project.
Firich, which also is part of the Summit Ascent consortium pursuing the Vladivostok casino, will join with Georgian and other Taiwanese investors to buy shares in a MelcoLot vehicle called Express Wealth Enterprises and in this way provide a planned US$50 million for the casino in the capital of Tbilisi. MelcoLot will own 42.7 percent of Express Wealth Enterprises and Firich 31.6 percent. Express Wealth in turn will hold the license for the casino.
Melco International said, “MelcoLot will be responsible for the management and operations as well as maintaining relations with government officials in Georgia.”
Express Wealth will apply for a 15-year gaming license, which if approved will allow it to launch construction ahead of a planned early 2016 opening.
Target markets include the Middle East, Europe and Turkey and neighboring Azerbaijan, where casinos are prohibited.
Last year, Georgia’s casinos industry, which is concentrated in the Black Sea port city of Batumi, home to five venues, generated nearly 105.3 million lari (about US$60 million), accounting for roughly 2 percent of the government budget.
Casinos in Tbilisi pay a higher annual license fee of 5 million lari. Batumi’s pay only 250,000. The fees are waived for any operator that builds a hotel of at least 100 rooms.
