Decline in Popularity of SG Casinos

CasinosResorts World Sentosa and Marina Bay Sands, two of Singapore’s leading gambling and leisure destinations, have raked in crowds from across Asia ever since their inception in 2010 and 2011 respectively. Initial success and allure to the entertainment hubs has dwindled with reports of levelled revenue instead of increased profits.

 

Tough love

As impending end of Casino rights in two of Singapore’s more popular casinos comes to a close, response from gamers has grown lacklustre. The formidable Singapore Dollar has made players increasingly wary of staking high wagers, with operators leaving players zero concession or softened exchange rates when paying incurred debts.

China’s economy has also showed a marked decrease in growth, which has impacted frequent casino visits from many high rolling Chinese VIP gamers. This has left several investors and operators with bleak and uninspired view of future situations.

 

Steady course

Casino earnings in Singapore peaked 2011 with a record $7.92 billion gathered in revenue. Ever since profits have been on a regular downward slide and has plateaued over the past few years.

Limited resources in terms of promotions offered in free hotel room stay have inhibited casinos from entertaining players on a regular and frequent basis. Restrictions levied by SG with regard to junket operators have denied several opportunities to entice VIP high rollers. Since junket operators are known to lend money out to high rollers in order to continue playing, these associations are reputed for links with criminal organisations.

This leaves casinos make provisions by extending credit to high roller players, in hopes of attracting and appealing to sentiments of VIP players, an abundance of which hail from China. Although these situations lead to bad debt, the overall picture is positive and profitable as the casinos have been consistent with approximate annual revenue of US$6 billion.