• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Sunday 1 June 2025
  • zh-hant 中文
  • ja 日本語
  • en English
IAG
Advertisement
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
    • Africa
    • Australia
    • Cambodia
    • China
    • CNMI
    • Europe
    • Hong Kong
    • India
    • Japan
    • Laos
    • Latin America
    • Malaysia
    • Macau
    • Nepal
    • New Zealand
    • North America
    • North Korea
    • Philippines
    • Russia
    • Singapore
    • South Korea
    • Sri Lanka
    • Thailand
    • UAE
    • Vietnam
  • Events
  • Contributors
  • SUBSCRIBE FREE
No Result
View All Result
IAG
No Result
View All Result

Experts cautious on impact of licensing two junket ops in Singapore

Newsdesk by Newsdesk
Fri 23 Mar 2012 at 11:28
16
SHARES
406
VIEWS
Print Friendly, PDF & Email

Singapore’s decision to license two junket operators for one of its casino resorts—but to choose ones understood currently to have no existing players from mainland China for one of its casino resorts—but to choose ones understood currently to have no existing players from mainland China—looks like an attempt to exert maximum control over this most controversial aspect of the Asian casino scene.

The two junkets chosen by the Casino Regulatory Authority (CRA) for Resorts World Sentosa (RWS) are headed by Huang Yu Kiang and Low Chong Aun. They are to be known in Singapore as International Marketing Agents (IMAs)—possibly to get away from the connotations the term ‘casino junket’ has in Macau and the wider world.

According to Ben Lee of iGamiX Management & Consulting, an expert in VIP gaming with experience in operations and project development across Asia, the IMAs are two Malaysian junket operators who currently specialise in supplying Southeast Asian players to Resorts World Genting (formerly known as Genting Highlands) the Genting-owned casino resort in Malaysia.

The CRA signalled its desire to retain tight control over the process by giving each named IMA only a 12-month licence, stipulating they cannot offer services to Singapore citizens and issuing revised regulations that specifically prevent the sharing of junket commissions with parties not licensed in Singapore. This is understood to be an attempt to close the back door to Macau-China junkets getting involved in Singapore via association with the newly-licensed entities. It seems the CRA has also in effect reversed the normal burden of proof applied to criminal and civil court matters in many jurisdictions—that the prosecution or plaintiff must prove its case. Instead it seems the new junkets will actively and regularly have to prove they are acting with probity. On that basis, it seems likely the licensing of junkets in Singapore will not provide the revenue ‘big bang’ that some industry observers had expected.

Speaking at a Macau press conference today to preview the Global Gaming Expo Asia to be held in Macau in May, Ben Lee gave some more details about the newly-permitted junkets.

“This will no doubt drive incremental business for Resorts World [Sentosa in Singapore],” said Mr Lee.

My company has had direct dealings with these gentlemen,” he added.

“Mr Huang is probably in the top three in terms of junket operations in Malaysia. He drives his customers to Resorts World Genting, Cambodia, and now Singapore.  Mr Low is probably somewhere in the top ten [in Malaysia] and has a very similar profile to Mr Huang. Both have had very little exposure to junket players outside Malaysia.

“Malaysian junkets already have funds transfer channels between Singapore and Thailand— consisting of the Indian moneychanger network that dominates these three countries. The funds channelling network in China, Macau and Hong Kong is completely different and made up predominantly of southern Chinese [participants].

“Though there are some channels already in place for funds transfer from Malaysia for [casino] players going to Macau, there are no real channels [currently] for Chinese Rmb going into Singapore [for gambling]. “

Sheldon Adelson , Chairman of Las Vegas Sands Corp, the developer and operator of Singapore’s other integrated resort Marina Bay Sands, hasn’t— to Inside Asian Gaming’s knowledge—actively spoken against having Singapore junkets. But unlike RWS he hasn’t applied for them either.

But Mr Adelson did claim last year that illegal junkets were already operating in the Singapore market. In April last year he caused ripples at a JP Morgan Gaming, Lodging, Restaurant & Leisure Management Access Forum in Las Vegas by saying he had personally blocked a US$5 million transaction between Macau and Singapore from a named person not previously identified as a high roller, stating the person was “obviously a junket rep”.

In any case analysts differ on the short term impact of the legalised junkets to the market.

John Oh of CLSA Asia-Pacific Markets said in a note:  “More important, though, is the signal that the Singapore administration is not averse to allowing IMAs to operate in the market, and this in our view is the beginning of more IMAs being licensed over time. It remains highly academic to quantify the potential impact to either Las Vegas Sands or Genting Singapore for now, but rest assured that we expect VIP rolling chip volumes to take on a new trajectory of growth and will reinvigorate Singapore’s gaming market, which has been otherwise labelled as “flatish” and “boring”. We forecast that Singapore gaming revenue will grow by +15% from US$6 billion in 2011 to US$6.9 billion in 2012, of which hold-adjusted VIP revenue will grow 11% this year.”

Grant Govertsen of Union Gaming Research Macau, sounded a note of caution in the impact of the IMAs.

“At this point, the CRA has not yet approved any junkets who wish to operate at Las Vegas Sands’ Marina Bay Sands. The junkets will receive one-year licences. We note that the CRA’s language is quite forceful, suggesting licensees will be continually subjected to suitability tests upon pain of revocation. A condition of the approval is that junkets only target foreigners—suggesting that locals are off limits. We think junket approval will remain slow and small.”

Cameron McKnight, Senior Analyst at Wells Fargo said: “In our view, junkets in Singapore are unlikely to play the pivotal role they do in Macau, and their activities are likely to be very tightly controlled. There are several reasons for this view:

“Singapore’s strict licensing criteria and extensive background checks will likely limit the pool of potential junket operators. The fact that only two new junkets were approved, but the applications of 12 were rejected bears this out. Singapore’s very strict gaming regulations are designed to protect its position as a key Asian financial hub.

“Singapore junkets will be unable to ”plug into” Macau junket networks. The CRA released revised regulations that specifically prevent the sharing of junket commissions with unlicensed parties. Effectively, this means that registered junkets in Singapore will not be able to act as a shop front for Macau based junkets, or tap into their networks or capital bases.”

RelatedPosts

Marine attraction Singapore Oceanarium to open at Resorts World Sentosa on 23 July

Marine attraction Singapore Oceanarium to open at Resorts World Sentosa on 23 July

Mon 26 May 2025 at 14:40
Singapore’s Changi Airport now Asia’s busiest airport as Hong Kong falls further behind

Singapore’s Changi Airport Group sees profit double in 2024 on all-time passenger movements record

Fri 23 May 2025 at 06:10
10 Years Ago: Rearing for a comeback

Genting Singapore continues to show weakness in 1Q25 on hotel room renovation work, weak macro environment

Thu 15 May 2025 at 05:08
Two to Tango

Tan Hee Teck to retire as CEO of Genting Singapore and Resorts World Sentosa

Wed 14 May 2025 at 18:14
Load More
Tags: JunketslicensingMarina Bay SandsSingaporeundefined
Share6Share1
Newsdesk

Newsdesk

The IAG Newsdesk team comprises some of the most experienced journalists in the Asian gaming industry. Offering a broad range of expertise, their decades of combined know-how spans multiple countries across a variety of topics.

Current Issue

Editorial – Foreigner-only casinos: Seize the day

Editorial – Foreigner-only casinos: Seize the day

by Ben Blaschke
Thu 29 May 2025 at 13:38

I was recently asked by someone working at a foreigner-only casino for my thoughts on the outlook for the Asian...

On the brink

On the brink

by Pierce Chan
Thu 29 May 2025 at 13:27

The transition period for Macau’s 11 satellite casinos is set to expire at the end of this year, after which...

A moral defense of gambling

A moral defense of gambling

by Andrew Russell
Wed 28 May 2025 at 18:19

Economist Andrew Russell explores the differences between community benefit and in-principle arguments for the existence of a legal gambling industry...

Face to face

Face to face

by Ben Blaschke
Wed 28 May 2025 at 18:08

Konami caught the eye at the recent G2E Asia show in Macau with its SYNK Vision Tables, which utilize facial...

Evolution Asia
Aristocrat
GLI
Mindslot
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

10 Years Ago – Reimagining Sri Lanka

Sri Lanka gazettes draft bill to establish Gambling Regulatory Authority

by Newsdesk
Sat 31 May 2025 at 06:03

A draft bill that would establish an official regulator for the Sri Lankan gaming industry, to be known as the Gambling Regulatory Authority, has taken another step forward after being gazetted. According to the Sri Lanka Mirror, the official announcement...

RGB International signs agreement to distribute KL Saberi and Atlas gaming machines

After record-breaking sales in 2024, Malaysia’s RGB sees 1Q25 profit fall to

by Newsdesk
Sat 31 May 2025 at 05:53

Malaysian gaming product distributor RGB International Bhd has reported group-wide revenue of MYR73.6 million (US$17.3 million) for the three months to 31 March 2025, down 65% year-on-year due to a lower number of products sold. The figure was also 79%...

Robert Goldstein to step aside as LVS Chairman and CEO from March 2026, replaced by Patrick Dumont

Robert Goldstein: Macau gaming market challenged by increased competition, online gambling and US-Sino trade war

by Ben Blaschke
Fri 30 May 2025 at 06:42

Las Vegas Sands (LVS) Chairman and CEO Robert Goldstein has bemoaned the lingering impact of the US-China trade war, as well as increased domestic and regional competition and the rise of online gambling across Asia for sustained flatness in the...

Industry hopes Thai Entertainment Complex Roundtable can establish “common ground” with those opposing legal casinos

Industry hopes Thai Entertainment Complex Roundtable can establish “common ground” with those opposing legal casinos

by Ben Blaschke
Fri 30 May 2025 at 05:38

Industry figures taking part in the Thai Entertainment Complex Roundtable (TECR) next Thursday 5 June hope to find common ground with those who oppose Thailand’s Entertainment Complex Bill, citing the opportunity to use an evidence-based approach to achieve outcomes that...



IAG

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • SUBSCRIBE FREE
  • NEWSFEED
  • MAG ARTICLES
  • VIDEO
  • OPINION
  • TAGS
  • REGIONAL
  • EVENTS
  • CONSULTING
  • CONTRIBUTORS
  • MAGAZINES
  • ABOUT
  • CONTACT
  • ADVERTISE

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

No Result
View All Result
  • Subscribe
  • Newsfeed
  • Mag Articles
  • Video
  • Opinion
  • Tags
  • Regional
  • Events
  • Contributors
  • Magazines
  • Advertise
  • Contact
  • About
  • Home for G2E Asia

© 2005-2024
Inside Asian Gaming.
All rights reserved.

  • English