Hot on the heels of winning a licence to run a casino in New York City, the Genting group is apparently still on the expansion trail.

The next destination is likely Vietnam’s ancient city of Hoi An. Vietnam’s online newspaper VnExpress says a joint venture formed by the Genting group and local fund manager VinaCapital has obtained approval from the central government for a US$4 billion (RM12.5 billion) casino resort project in Hoi An city. The news portal reports that the large-scale project features a five-star hotel, resort villas and a casino.

It is not known which companies in the Genting group will undertake the Vietnamese project.

That aside, the Genting group is also said to be exploring the setting up of a casino in Sri Lanka, as the island nation’s parliament recently passed the Gambling (Special Provision) Bill to legalise gaming.

The government plans to join others in the region in luring tourist dollars with a casino.

"[Genting group] has expressed interest in ... building a casino there. Should it do so, the casino is likely to be a smaller version, not as big as the one in Singapore but more like the size of the casino it has in Manila," says a source.

"A group from Genting was sent on a study tour to Sri Lanka earlier this year," the source says.

A Genting group spokesman declined to comment on the matter.

Last month, the Sri Lankan parliament passed a bill that fully regulates gambling for the first time. The legislation legalises gaming, including sports betting, casino and horse racing. A licence is required to operate a gaming business in the country.

After emerging from a civil war that lasted for three decades, Sri Lanka is looking to rebuild its tourism industry and casino gaming is seen as one aspect to help push this effort.

The Sri Lankan government’s goal is to obtain US$2 billion in tourism revenue a year by 2016. In 2009, Sri Lanka’s tourism revenue was over US$300 million. In the first 10 months of this year, tourism revenue was US$437.9 million.

The legislation stipulates specific zones where the casinos can be built. These are believed to include the Jaffna Peninsula, which is now becoming a major tourist destination.

Earlier this year, the Genting group invested in the Union Bank of Colombo. Genting Bhd holds a 20% stake, while Genting Hong Kong owns 6% of the bank, which is expected to undertake a listing exercise in the near future.

Genting chief Tan Sri Lim Kok Thay sits on the board of the Sri Lankan bank together with Genting Bhd’s president and COO Tan Kong Han.

Considering that the Genting group already has a toehold in Sri Lanka, there is a possibility of a more meaningful investment or presence in that country.

Although Sri Lanka has been legalised gaming, there is no shortage of casinos or betting centres in the country. According to data on the Internet, there are nine casinos in Sri Lanka — eight in Colombo, the largest city and the commercial capital of the country, and one in Kollupitiya, a major suburb of Colombo. Many small betting parlours are believed to have sprung up in other parts of the country.

Some gaming analysts do not rule out the possibility of the Genting group venturing into Sri Lanka.

"The country’s move to legalise the gaming industry would have caught the attention of gaming players in the region. Moreover, Genting made an entry into the country earlier this year … perhaps, that is a build-up to more things to come," observes a gaming analyst.

"Look at the Philippines market. Many people thought it was a crazy idea for Genting to build a casino there but things are panning out well ... It could be the same in Sri Lanka, but that depends on how well the government there will be able to control the industry, weed out the illegal gambling outlets and minimise social ills," he says.

A local fund manager says it is too early to make an investment decision on building a casino in Sri Lanka. "The war just ended. It may be good to explore the situation for a while and see if the stability can be sustained," she says.

This article appeared in Corporate page of The Edge Malaysia, Issue 837, Dec 20-26, 2010