Singapore - S'pore to be second biggest gaming destination after Macau

SINGAPORE: Singapore is poised to be the second biggest gaming destination in the world after Macau.

Last year, analysts had made the same prediction but the outcome from the two integrated resorts in Singapore fell short of this expectation.

Analysts are confident that after Marina Bay Sands (MBS) strong numbers, gross gaming revenue from the two local integrated resorts may overtake Las Vegas Strip by end of this year.

MBS raked in gross gaming revenue of over US$2 billion last year.

Meanwhile, its rival Resorts World Sentosa recorded net gaming revenue of close to US$2.6 billion in 2011.

Analysts said the combined gross gaming revenue of Singapore's two casinos is about US$5.7 billion.

This is just a shy away from the total gaming revenue of US$6.1 billion collected from more than 20 casinos along Las Vegas Strip.

With MBS's recent strong first quarter showing, some analysts are upbeat that Singapore's gaming industry will overtake Las Vegas this year.

MBS posted net revenue of US$848.7 million in the first quarter this year. Its casino earnings rose 51 per cent to US$701.3 million.

Terence Wong, co-head of research at DMG and Partners Research said: "For this year, it should be able to take over Las Vegas as the number two top gaming spot globally and that is on the back of huge masses going over there (Marina Bay Sands) and on top of that, I think VIPs are much sort after. RWS already has their own international marketing agents which bring them (patrons) over here."

Analysts expect Singapore's gross gaming revenue to hit US$6.5 billion this year versus the Strip's US$6 billion.

Experts said Singapore remains attractive to the high rollers because it offers more than just gaming.

Unlike Macau where gaming accounts for 90 per cent of its economy, there are other tourist attractions and activity for the family too.

Director of corporates at Fitch Ratings Nandini Vijayaraghaven added: "Gaming in Singapore is stable to positive, it is a preferred tourist destination. It is a regulated market with two casinos, both operating under long licence period and in exclusivity period build within the licence period."

Casino patrons' stay in Singapore is usually longer on each visit of around four days.

This helped boost income from the integrated resorts as well.

In the fourth quarter last year, data from the tourism authority show that tourists spent S$1.3 billion in sightseeing and entertainment including gaming.

Richard Linstrom, dean at University of Nevada, Las Vegas, Singapore Campus, said: "Las Vegas Sands has a kind of unique expertise in the high rollers upscale market, I think it'll be difficult for regional operators over the short term to match that. I think over the longer term there'll be adjustments by all the companies in Asia and there'll be room for everyone to compete."

Genting Singapore will report its earnings, which includes Resort World Sentosa on 10 May.

Analysts expect gaming revenue from Resorts World Sentosa to increase but it may fall short of the performance shown by MBS.

- CNA/ck

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