Inside Asian Gaming

INSIDE ASIAN GAMING | March 2013 20 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 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 FEATURES 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 will be to convert these facilities into traffic on the gaming floor.