• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Sunday 13 July 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

Selling Sentosa

Newsdesk by Newsdesk
Tue 19 Mar 2013 at 03:17
3
SHARES
77
VIEWS
Print Friendly, PDF & Email

The challenges are many for Resorts World Sentosa as it enters its fourth year of operation. Singapore correspondent Alex Lobov outlines its positioning and prospects

Although Genting is a seasoned casino operator with clout and intercontinental scale, obvious questions pop up about the future of its sprawling S$6.59 billion (US$5.3 billion) Singapore property, Resorts World Sentosa.

The main tasks for RWS as it enters its fourth year are to ensure continued growth and differentiation. The casino will need to capitalize on the qualities that set it apart from its arguably more iconic and internationally recognized market rival, Marina Bay Sands. It will need to find a way to position itself more clearly to the international VIP market, leverage its brand in other gaming cities, and mitigate factors beyond its control, such as Singapore’s limiting tourism infrastructure and tough regulatory environment.

RWS suffered declining revenue over much of 2012, though the latest results point to a recovery as the year drew to a close. Parent company Genting Singapore reported net revenue increased 0.7% year on year and 18% quarter on quarter to S$792 million in Q4 2012, driven by a notable increase in VIP play, though the company’s mass-market segment remained largely flat.

The surge in VIP volume was underpinned by aggressive extension of credit as the business became increasingly top-heavy.

“Rising costs, falling margins and stagnant industry mass market are some of the concerns looming in the background,” warned a 21st February research note from J.P. Morgan. “While the market may be excited by the robust top-line growth in the short run, deteriorating earnings quality and cash-flow-generation ability could weigh on the stock price in the longer term.”

bedroom in one of the recently opened ocean suites at resorts world sentosa
Bedroom in one of the recently opened Ocean Suites at Resorts World Sentosa

J.P Morgan also highlighted concern about the reliance of Genting Singapore (as well as market rival Marina Bay Sands) on a handful of whales: “We caution that the Singapore VIP market is very concentrated in a small group of high rollers which could cause a big swing [quarter-on-quarter]. We witnessed this situation in [the third quarter of 2011] when MBS’ VIP rolling chips increased 37% [quarter-on-quarter] and declined 36% in the subsequent quarter.”

The prospects for the high-end segment are unclear—the Singapore government has not given any indication that it will loosen restrictions on junket operators, and if anything is scheduled to impose stricter regulation covering VIP gaming this year, such as requiring players to draw down their entire qualifying deposit of S$100,000 before credit can be extended to them and imposing higher fines on international marketing agents for regulatory violations.

What RWS can call on is its solid network of VIP gamblers around the region. From the Philippines to Malaysia, Genting and Resorts World are brands that are established and still growing. RWS can aim to integrate its marketing campaigns and promotions more strongly via branded offerings such as network-wide loyalty cards, international perks and access to facilities away from VIP players’ home markets.

Mass Softness

Genting Singapore’s Q4 results were characterized by weak performance in the mass market, and there’s no clear growth impetus in sight. A 22nd February report from Union Gaming Research Macau stated: “The mass market story continues to be soft, and we believe will remain so for the foreseeable future. We estimate that mass and slots GGR was up in the low single digits on both a year-on-year and sequential basis, and we are forecasting largely flattish GGR growth in 2013. With limited top-line growth of mass market table games and slots, in our opinion, the company is focusing on margin improvement in this segment, which should be driven by improving the head count and further increasing dealer efficiency. Not unlike Macau operators, a concentrated effort on acquiring more ‘premium mass’ customers is under way, although we do not necessarily believe this will have a near-term impact. Further, with the local Singaporean market essentially maxed out, the focus on Malaysia and Indonesia continues— however, we believe that a significant portion of the high-value customers are likely already penetrated.”

The pursuit of the mass market in Singapore is stifled by the city-state’s restriction of promotional efforts targeted at locals. Indications as well are that tourism infrastructure is reaching capacity. Furthermore, Singapore is not blessed with a growing domestic market from which to draw demand from, like Macau, or even the Philippines.

What Genting can do to boost RWS’ mass-market appeal is further develop its brand and integrate it with its surrounding environment.

RWS sits on the resort island of Sentosa and draws a different type of crowd than Marina Bay Sands, which is located closer to the downtown business district. It feels more like a beach resort than a city getaway like its massive counterpart. It has fewer Singapore expatriate customers and business travelers than MBS does. Rather, it attracts a lot of families and holiday-makers who are interested in Sentosa—which translates as “peace and tranquility” in Malay—as a holiday and resort destination, not just a place with a casino. And RWS certainly has plenty of attractions, including 1,800 rooms across six themed hotels, celebrity chef restaurants and entertainment destinations like Universal Studios and the newly opened Marine Life Park. The job for RWS will be to convert these facilities into traffic on the gaming floor.

But RWS’ location on an island which for many locals is an acronym for “So Expensive and Nothing to See Also” presents challenges. The Singapore government earmarked Sentosa for development as a holiday resort for locals and tourists in the early ’70s, and since then, the island has reinvented itself as rapidly as the rest of Singapore has. RWS needs to play an active role in this continued development, from its marketing to creating new attractions, to ensure it is well positioned to take advantage of the rapidly growing Asian tourism market.

family funthe worlds first sesame street-themed ride opened at universal studios singapore on 1st march
Family fun—the world’s first Sesame Street-themed ride opened at Universal Studios Singapore on 1st March

RelatedPosts

Government report says online gambling poses far greater money laundering threat than Singapore’s land-based casinos

A deeper look at how Singapore introduced casino gaming: possible lessons for Thailand

Fri 11 Jul 2025 at 07:15
Marina Bay Sands optimizes manpower with deployment of 12 autonomous robots for back-of-house deliveries

Marina Bay Sands optimizes manpower with deployment of 12 autonomous robots for back-of-house deliveries

Wed 18 Jun 2025 at 14:40
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
Load More
Tags: Resorts World SentosaSentosaSingapore
Share1Share
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 – An inconvenient truth

Editorial – An inconvenient truth

by Ben Blaschke
Fri 27 Jun 2025 at 15:21

It’s understandable that political observers, academics and members of the public in greenfield jurisdictions would express caution around the legalization...

Light & Wonder’s Siobhan Lane

Light & Wonder’s Siobhan Lane

by Ben Blaschke
Fri 27 Jun 2025 at 15:19

Siobhan Lane, Light & Wonder’s highly experienced CEO of Gaming, speaks to Inside Asian Gaming about the company’s ongoing transformation...

Honesty is the best policy

Honesty is the best policy

by Ben Blaschke
Fri 27 Jun 2025 at 14:13

The Thailand Entertainment Complex Roundtable brought industry stakeholders, politicians and supporters of the government’s Entertainment Complex Bill face to face...

Sri Lanka’s casino industry

Sri Lanka’s casino industry

by Shaun McCamley
Fri 27 Jun 2025 at 13:36

Industry veteran Shaun McCamley delves into the complex history of Sri Lanka’s casino industry at a time when the country...

Evolution Asia
Your browser does not support HTML5 video.
Aristocrat
GLI
Nustar
SABA
Mindslot
Solaire
Hann
Tecnet
NWR
Jumbo
568Win

Related Posts

Light & Wonder’s Siobhan Lane

Light & Wonder’s Siobhan Lane

by Ben Blaschke
Fri 27 Jun 2025 at 15:19

Siobhan Lane, Light & Wonder’s highly experienced CEO of Gaming, speaks to Inside Asian Gaming about the company’s ongoing transformation into a content powerhouse and reveals where Asia fits into the journey. Ben Blaschke: Thanks for speaking with IAG, Siobhan....

Behind the curtain

Behind the curtain

by Newsdesk
Fri 27 Jun 2025 at 12:40

Hospitality logistics firm BCI Worldwide has firmly established its presence in Macau, playing a part in some of the city’s most iconic integrated resort development projects. Macau, the “Las Vegas of Asia”, is a city synonymous with opulent resorts, world-class...

Of fortune or misfortune

Of fortune or misfortune

by Pierce Chan
Fri 27 Jun 2025 at 12:32

At the beginning of June, the Macau government announced that all 11 of the city’s satellite casinos would be shut down this year. The sudden news shocked the community and has led many to question whether the complete closure of...

10 years ago – Tricky balance

10 years ago – Tricky balance

by Ben Blaschke
Fri 27 Jun 2025 at 12:17

In this regular feature in IAG to celebrate 20 years covering the Asian gaming and leisure industry, we look back at our cover story from exactly 10 years ago, “Tricky balance”, to rediscover what was making the news in July...



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