SINGAPORE

Singapore allows $9 billion IR expansion, but raises taxes, entry fees

Singapore has potentially breathed new life into its gaming market, allowing S$9 billion ($6.65 billion) of investment into non-gaming amenities and an increase in gaming space and machine numbers.

It’s the first major expansion since Las Vegas Sands’ Marina Bay Sands and Genting Singapore’s Resorts World Sentosa opened in 2010. The market swiftly grew to generate gross gaming revenue of about $4 billion a year, but has shown little signs of topline growth in recent years, with a lack of junket operators and no additional capacity to drive growth.

The Ministry of Trade and Industry and the Ministry of Finance said the latest round of investment from Las Vegas Sands and Genting Singapore would create 5,000 new jobs and bring in an extra half a million visitors a year.

The two IRs initially invested about S$15 billion and in light of the further financial commitment, the government agreed to extend the exclusivity period of the two licensees to the end of 2030.

It also allowed each of the two IRs to increase their total allowed gaming space and the number of gaming machines they can operate. 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 gaming space and a further 800 machines.

However, the government points out that as non-gaming areas will expand by a much larger amount, the allowed gaming area as a proportion of total floor area will reduce from the existing 3.1 percent to 2.3 percent.

The IRs have indicated that the additional gaming provisions will be targeted at highertier non-mass market players, who are mainly tourists, the government said.

The new allowances come with a sting in the tail. The government plans to up the local entry fee from April 4 by 50 percent to $150.

At the end of a current tax moratorium in February 2022, it will also introduce a higher tax structure, which will also include more tiers. For premium gaming the rate will rise to 8 percent from 5 percent on the first $2.4 billion in GGR and will rise to 12 percent thereafter.

For mass gaming, the tax rate also gains by three percentage points to 18 percent for the first $3.1 billion in GGR and then 22 percent thereafter.

“The long-term positives of the capacity expansion outweigh the tax increases and further limits on locals,” Bernstein Research analyst Vitaly Umansky said in a note.

In terms of the individual plans, Las Vegas Sands said it will invest US$3.3 billion in a state-of-the-art 15,000-seat arena, a 1,000-room luxury hotel tower and additional MICE space.

The hotel tower will also include a sky roof with a swimming pool and a signature restaurant. Moshe Safdie, who designed the original property, and Aedas andGensler are planning to be part of the team responsible for the design elements of the building.

“New luxury hotel accommodations and a world-class entertainment venue are exactly the catalysts we need to drive additional visitation to Singapore, and specifically to Marina Bay Sands,” said Rob Goldstein, the company’s president and chief operating officer. “The expansion of our Singapore IR is a key component of our company’s strategic growth plan and also reflects the strong tourism and business potential in Singapore. The additional hotel rooms are extremely important to us in addressing the demand created by our leisure and business tourists and our premium gaming customers.”

The long-term positives of the capacity expansion outweigh the tax increases and further limits on locals.

Resorts World Sentosa will expand Universal Studios Singapore with two new immersive environments – Minion Park and Super Nintendo World. It will also enlarge its popular S.E.A. Aquarium, taking over the adjacent Maritime Experiential Museum to create a new Singapore Oceanarium. ItsWaterfront Promenade will be redeveloped to include a free public attraction featuring a nightly show and multi-purpose event zone that can be adapted for different festivals and events. Two new destination hotels, together with the expansion of the Central Zone, will also add up to 1,100 more rooms for RWS.

“We are on a journey to rejuvenate Sentosa to cement our position as a leading leisure and MICE destination for the next few decades,” said Quek Swee Kuan, CEO of the Sentosa Development Corp. “RWS’ expansion will be a significant boost. At the heart of these efforts is our commitment to creating great guest experiences.”

SIS extends distribution accord with Singapore Pools

SIS (Sports Information Services) has extended its agreement with the Singapore Pools (Private) Limited, as the distributor of live pictures and data from the Singapore Racecourse in Kranji, Singapore.

As part of a new two-year deal, SIS will continue to broadcast all 800 races from one of Asia’s most highly regarded racecourses, home to the Singapore Triple Crown Series.

The races will be made available to the UK and Irish retail and online customers via the newly-launched SIS 24/7 Live Betting Channels, an end-to-end solution which offers 24/7 betting events to retail and online operators, with a betting event every 3 minutes.

Singtel to sponsor esports team

Singtel said it would sponsor Singapore’s first Southeast Asian Games esports team and two new amateur leagues under the PVP Esports banner to help cultivate the budding gaming and esports scene on the island.

“This year will be an inflection point for the industry in Singapore and the region,” Singtel’s International Group CEO Chee Hong Tat said. “The popularity of esports and gaming is increasing exponentially.