Branson's Virgin, Tabcorp eye Macau casino deal

SYDNEY, Jan 29 (Reuters) - Richard Branson's Virgin Group [VA.UL] is in talks with Australian wagering firm Tabcorp Holdings Ltd. and other firms on developing a US$3 billion casino in Macau, sources familiar with the matter said Monday.

The British billionaire, whose business empire ranges from airlines to music, visited Macau last week along with Tabcorp boss Matthew Slatter to look at potential sites and partners for a casino and resort development, the sources said.

However, any discussions were in early stages, they said.

Tabcorp was one of several potential partners talking to Virgin but was expected to have a major role in developing and operating the casino in Macau, a former Portuguese territory in southern China already home to a large gambling industry, one source said.

One option being discussed was Tabcorp having an equal shareholding in the project with Virgin.

A Virgin Group spokeswoman said nothing had been decided.

A Tabcorp spokesman said: "We don't comment on rumour and speculation".

Recently-listed Melco PBL Entertainment (Macau) Ltd. -- a joint venture of Australian media firm Publishing and Broadcasting Ltd. and Hong Kong firm Melco International Development Ltd. -- is planning to build three casinos in Macau.

Macau recently dethroned Las Vegas as the world's biggest gambling centre, with some analysts predicting its gambling market could more than double to $14 billion in revenue by 2010.

Tabcorp shares were trading 0.4 percent weaker at A$17.58 at 0157 GMT.

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