In this new regular feature in IAG to celebrate 17 years covering the Asian gaming and leisure industry, we look back at our cover story from exactly 10 years ago, “Rearing for a Comeback”, to rediscover what was making the news in February 2012!
It’s a little over 10 years now since Marina Bay Sands (MBS) first established itself as market share leader in Singapore’s two-horse casino race.
Inside Asian Gaming’s cover story back in February 2012 explored the early stages of this dynamic, with MBS having stolen the lead from Genting Singapore’s Resorts World Sentosa (RWS) a little over 12 months after the two IRs first opened their doors in 2010. Thanks to its years of experience serving local customers at its Malaysian integrated resort at Genting Highlands (now Resorts World Genting), RWS had jumped out to a strong start in Singapore with its 2010 GGR totaling SG$3.39 billion – well ahead of the SG$1.81 billion recorded by its cross-town rival.
But the pendulum began to swing the following year with MBS overtaking RWS in the mass market segment (SG$1.95 billion to SG$1.77 billion), then surpassing 50% of total market share in 2012 with GGR of SG$3.67 billion to RWS’s SG$3.61 billion.
The discussion at that time was whether RWS could claw its way back, with financial group CIMB writing in a note, “We believe RWS has yet to reach its full potential, with sufficient accommodation, more complete product offerings and a boost from the company’s marketing efforts.
“It is arguably difficult to quantify the boost to gaming demand and earnings from these new non-gaming amenities. But even more comprehensive integrated resort offerings should help draw in more visitors, which in turn could translate into higher casino patronage and gaming revenue.”
While RWS’s theme park offering has undoubtedly led to significant visitation pre-COVID – and provided a welcome boost via decent locals participation while international borders have been closed – they have not, as prophesized, provided enough impetus to reclaim its place on Singapore’s gaming throne with MBS having led the way in both the mass and VIP segments every year since 2015. Not that Genting Group should be too concerned – its Singapore IR remains to this day its most profitable entity and even managed to turn a SG$69.2 million (US$52.0 million) net profit in 2020 in the face of the COVID-19 pandemic.
Next on the agenda for both resorts are concurrent SG$4.5 billion (US$3.3 billion) expansion projects which will see the race for market share heat up once again.
