“Weak” VIP phase will continue to plague the Singapore on line casino marketplace this yr, in accordance to international credit history personal debt watcher Fitch Scores Inc.
Compared with in other gaming marketplaces, Fitch is significantly less optimistic about Singapore and expects its two on line casino resorts to be roughly flat at US$four billion in 2017 when compared to very last yr
“Gaming revenues ongoing a downward trajectory in 2016 mostly because of to a steep contraction in the VIP phase, regardless of a twelve.five per cent attain in Chinese website visitors (the most significant supply of VIP income) in 1st-half 2016,” Fitch explained in its note. “Most income will come from foreigners, as area inhabitants are essential to fork out a SGD100 [US$71] entrance fee [for 24-hour obtain] and marketing and advertising to locals is intensely restricted.”
Singapore’s two integrated resorts – Las Vegas Sands Corp.’s Marina Bay Sands (MBS) vacation resort and Genting Singapore’s Resorts Planet Sentosa (RWS) – will also sense the aggressive strain from other gaming hubs in the Asia-Pacific location.
“Locals are a lot more drawn to condition-owned lottery video games: Singapore Pools which also operates sporting activities betting. There are also gambling cruises and compact-scale slot parlours,” Fitch included. The institution said: “Moreover, Singapore will face included aggressive strain from Macau and the Philippines. We consider the likelihood of the Singapore federal government awarding additional gaming licenses to be reduced, but admit that it is a risk.”
The credit history personal debt watcher also pointed out many dangers to Singapore’s on line casino together with the risk of the condition regulator to situation new gambling licenses. The MBS, which has sixty per cent of the area gambling marketplace, and RWS have thirty-yr concession agreements which because of to conclusion in 2036 and 2037, respectively.
Other risk to Singapore casinos, in accordance to Fitch, features the risk of greater gaming taxes starting off in 2022 a constrained skill to expand bodily greater limits on Singapore residents’ participation and a significant reliance on a concentrated pool of significant-rollers.
On the positive note, Fitch cited Singapore’s “low” gaming tax fee, a “duopoly construction at least by way of 2017”, and a central place in South-east Asia with nicely-developed transport inbound links.