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But experts said that Singapore’s gaming industry will see competition from regional players.
The burgeoning Asian middle-class is ringing in growth for the casino industry in Asia.
Some experts are forecasting Singapore’s gaming revenue to increase 25 per cent this year, faster than 20 per cent growth expected for Macau.
And while analysts are expecting slower growth from the casinos in the US, it seems the chips are in for Asia; following the opening up of the casino industry in Singapore, it seems all eyes are on markets such as Vietnam, Japan and Taiwan.
Irvin Seah, economist and vice president at DBS Group Research, said: “For Singapore’s case, we are considered a new kid on the block, but…I think going forward, we may see competition from regional countries.
“But all in all, I think the pie is large enough to be shared by many players in the gaming industry, because essentially, I think this has to do with the emergence of Asia – with rising wealth and the growing middle income class. So I think the potential for this industry in the region is tremendous.”
Fitch said that Singapore and possibly Vietnam may take some of the sheen off Macau operators’ efforts to further expand the district’s mass-market appeal.
Michael Paladino, gaming analyst at Fitch Ratings, said: “I do not know if (Singapore) it will be outpacing Macau any time soon, but it could outpace the Las Vegas strip in a couple of years.
“When Macau first opened up in the early part of last decade, most people predicted that it would overtake the strip in a few years. I do not think there were many people predicting that it would be four times the size in a five-year period.
“Singapore has already ramped up to about a US$4 billion annually; it is probably going to go to about US$5 billion…in the next year or two. Las Vegas strip, in terms of gaming revenue, only generated US$6 billion last year, so…in terms of the growth trajectory, you could see Singapore overtake in terms of gaming revenue.”
On the other hand, experts point out that 60 per cent of casino revenues in Las Vegas come from non-gaming activities, and in that area, Singapore has some way to go.
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