Inside Asian Gaming

INSIDE ASIAN GAMING | June 2013 18 COVER STORY T he Singapore-listed operating entity of Resorts World Sentosa, Genting Singapore, reports its financial results in Singapore dollars, while Marina Bay Sands parent Las Vegas Sands reports in US dollars. With business at both IRs transacted in the local currency, LVS has enjoyed a significant windfall from the steady appreciation of the Singapore dollar against the US over the past three years. In early 2010, just before the IRs opened, the Singapore dollar dipped to almost US$0.70. The Singapore dollar is now worth about 80% of the value of its US counterpart. In the first quarter of 2013, one Singapore dollar ranged from buying as much as 0.82 US dollars, to as little as 0.80. The US dollar conversion gain alone at 0.8 versus 0.7 is 14% Though there were clearly other more substantial drivers behind the pick-up in Singapore’s economy—the mainstays of which are manufacturing and financial Positive Exchange The arrival of casinos in Singapore has coincided with a steady appreciation of the local currency Singapore Dollar to US Dollar: 5-Year Chart Source: Company data and J.P. Morgan estimates 0.650 0.675 0.700 0.725 0.750 0.775 0.800 0.825 2008 2009 2010 2011 2012 The Singapore government’s primary proclaimed objective in legalizing casinos through the passage of the Casino Control Act in 2006 was to boost the Lion City’s flagging tourism industry. The two IRs built around the casinos have delivered on that goal.