Genting International and Star Cruises say on Wednesday they are working closely with authorities in Singapore over the casino licence for the Sentosa integrated resort.

Their response came one day after the Singapore government said in no uncertain terms that Genting-Star would not automatically get the casino licence for Sentosa and would first have to pass suitability checks.

Genting and Star Cruises say they understand fully the necessity and requirements of such checks - and that this is an on-going process, even after a licence has been issued.

They plan to apply for the licence only when the Sentosa project is substantially completed and ready to receive visitors.

The consortium is due to sign the development agreement on Thursday but their share prices took a hit on Wednesday.

Genting International shares fell 7.9 percent to S$0.755 while Star Cruises shares were down 13 percent.

Analysts say the latest developments could have an impact on their plans for Macau.

Genting-Star agreed to take a stake in an upcoming project there and sell a 7 percent stake in Star Cruises to a group of investors led by gaming tycoon Stanley Ho.

The casino licence for the Marina Bay integrated resort has also not yet been awarded.

This is because operators of the two resorts can only apply for the 30-year gaming concession once half of their developments are built. - CNA/ch