SOUTH EAST ASIA 50
SINGAPORE
Outlook fails to excite Singapore is expected to see another year of relatively lacklustre gaming growth given weakness in the VIP market and competition from other regional jurisdictions, analysts say.
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arina Bay Sands continues to be weak VIP segment amid economic uncertainty one of the world’s most profitable and growing competition from the Philippines IRs, accounting for 34 percent of and other Southeast Asian casino destinations.” The agency does however note that the Las Vegas Sands’ group adjusted mass market is likely to property EBITDA in Q3, remain stable and will though it continues to be a bigger contributor grapple with stagnant to cash flow. topline growth. The benefit In 2018, the Singapore Casino revenue from incremental government announced in the most recently the first expansion of its reported quarter was non-gaming gaming industry since its up just 2.8 percent, (hotels, inception, allowing each with food and beverage IR to invest $3.3 billion revenue far outstripping entertainment) will to expand their facilities gaming with a gain of mostly be offset in return for additional 15.1 percent. by an increased gaming capacity. At rival Genting Las Vegas Sands has Singapore, revenue fell 7 tax rate and said this will include a new percent to $596.1 million, entrance levy. 1,000-suite hotel tower, a while adjusted EBITDA sky-roof swimming pool was $278 million, down and a state-of-the-art 13 percent. Net profit facility designed for live declined 24 percent to $158.8 million. Gaming revenue was down 11 music with a 15,000-strong capacity. Although the rollout of new attractions percent to $360.7 million, while non-gaming has helped boost revenue at resorts in Macau revenue rose 1 percent to $234 million. Fitch Ratings said it expects Singapore’s and elsewhere in Asia, Fitch says it’s neutral gaming revenues to be flat in 2020, “with a on the expansion of the two IRs.
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“The benefit from incremental non-gaming (hotels, entertainment) will mostly be offset by an increased tax rate and entrance levy,” it said. The government, in return for a combined S$9 billion ($6.65 billion) investment, allowed MBS and Resorts World Sentosa to increase their total allowed gaming space and the number of gaming machines. MBS will be able to dedicate a further 2000 sqm to gaming and will be able to up its total number of gaming machines from 2,500 to 3,500. RWS will have an extra 500 sqm of
Singapore court dismisses Bloomberry case The Singaporean High Court has dismissed a petition filed by Bloomberry Resorts against Global Gaming Philippines, which accused the company of committing fraud and misrepresentation leading to its termination as the management firm for Solaire in 2013. The latest court decision upholds a ruling from the arbitration tribunal in Singapore in 2016, which ruled that the termination of GGAM’s management services contract for Solaire was unlawful. At the time, Bloomberry alleged that there were concealment and misrepresentations in light of investigations into violations of the Foreign Corrupt Practices Act which involved two out of four of GGAM’s executives during their time at Las Vegas Sands. However, in a recent disclosure to the stock exchange, Bloomberry said the court found that the findings presented to the court “do not constitute strong and cogent evidence of any species of fraud.”
Asia Gaming Briefings | January 2020
