Supplier News
Singapore – Singapore to remain third as growth slows
By Phil - 24 February 2014
Growth slowed at Singapore’s two casinos with just a 3.8 per cent increase in gaming revenues during 2013, prompting analysts to describe the market’s growth potential as ‘flatish.’
The Marina Bay Sands and Resorts World Sentosa generated a combined $6.077bn in gaming revenues during 2013, falling behind the Las Vegas Strip, which generated $6.5bn in 2013. Marina Bay Sands generated $3.135bn of the 2013 total, representing a 6.6 per cent
increase over 2012. Resorts World’s gaming revenue take was $2.942bn, marking a one per cent increase.
Union Gaming Group Managing Director Grant Govertsen said: “Generally speaking, the mass-market story in Singapore has now entered into a flattish period at best. The VIP story is a bit rosier, although we don’t think VIP in Singapore is likely to be as robust as it is in Macau.”
Mr. Govertsen believes that Singapore, which collected $5.85bn in gaming revenues in 2012, would probably remain the third in the league of top-ranking casinos via GGR until casinos are approved for Japan.
“The good news for Singapore is that we don’t view any other Asian markets threatening its hold as the No. 2 gross-gaming revenue market in Asia. We think growth is likely to remain anemic in a best-case scenario going forward given that the Singapore local’s market is fully penetrated and the government continues to tighten the reins on this segment,” Mr. Govertsen said.
Wells Fargo Securities gaming analyst Cameron McKnight added: “Management is cautiously optimistic on the VIP market. While low hold in Singapore has been a consistent theme, we continue to believe it should normalise over time.”
