• Subscribe
  • Magazines
  • About
  • Contact
  • Advertise
Saturday 5 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

Handful of Aces

Newsdesk by Newsdesk
Tue 15 Sep 2009 at 16:00
casino_revenue
4
SHARES
98
VIEWS
Print Friendly, PDF & Email

A rosy future

Six reasons to be bullish on Singapore gaming

Asians have a high propensity to gamble

The average bet in Macau is US$100 versus US$20 in Las Vegas. Singapore is well located to tap into the huge Southeast Asian market—there are an estimated 164 million people within a one hour’s flight. Singaporeans also have an avid interest in gambling (54% of locals gambled during 2008; of whom 71% gambled at least once per week), so there is actually a bigger pure-locals market than in Macau. Pent-up demand in this region is huge and we do not believe it is a market-share game in competition with Macau or other Asian-Pacific markets.

Money to burn

Southeast Asia, and indeed Asia, is home to some of the world’s fastest growing economies. The region is expected to maintain GDP growth of 5%-plus over the long-term. Along with GDP growth comes rising incomes. MasterCard estimates that the number of Asians earning more than US$5,000 will reach 639 million by 2014 from almost 400 million now, or 5% Cagr [compound annual growth rate]. Singaporeans, who are expected to make up one-third of casino visitors to the Singapore resorts, have the third-highest GDP per capita in Asia of US$30,000.

Tourist heaven

The Singapore casino-resorts will offer more gaming activities than are available in Macau or elsewhere in Asia-Pacific. Marina Bay Sands is building expansive convention facilities; 1 million sq. ft of mid- to high-end retail; numerous restaurants; 2,600 hotel rooms and the SkyPark, which we believe will be one of the leading tourist attractions in Singapore. Resorts World Sentosa includes Universal Studios, which will be one the largest theme parks in the world. All these attractions will support more than 17 million tourist arrivals by 2015 (+70% from 2008). We expect average length of stay will increase to four days (from 3.2 days currently), which compares with Macau’s 1.3 days.

Government support

Gaming taxes are between 12-22% versus 39% in Macau and 25% in Malaysia. The success of the integrated resorts is in the interests of the government as this initiative represents a tool to attract tourists, create jobs and add to the increasingly dynamic cultural landscape of Singapore. Ebitda margins will be high at around 40%, although ROIC [return on invested capital] will be in the mid-teens given the high capital expenditure.

Efficient infrastructure

Singapore is a well-established travel hub, with an efficient air, land and sea transport network, making it an attractive location for a casino-resort. Both casinos are located just 20 minutes’ drive from the airport. Currently, 4,500 flights arrive weekly into Singapore from 185 countries. There are strong connections to Australia, Europe and the US, which unlikely many other Asian cities. Singapore enjoys a more stable political, economic and social environment than Macau, which should result in more predictable revenue streams.

Less reliance on VIP play and junket operators

We believe VIP play will contribute around 40% of revenue, compared with Macau’s 70%. This is positive as VIP revenues can be more volatile (closer correlation to macroeconomic conditions and loan growth) and significantly lower margin due to the high commissions paid to junket operators. For these reasons, we believe investors will be prepared to assign higher valuation multiples to stocks with more dependence on wider margin, more predictable mass-market business.

RelatedPosts

FIBA 3×3 Asia Cup 2025: Singapore hosts region’s biggest tournament

FIBA 3×3 Asia Cup 2025: Singapore hosts region’s biggest tournament

Thu 27 Mar 2025 at 05:52
Resorts World Sentosa’s waterfront expansion to transform Singapore skyline with “iconic” 88-meter tall light sculpture

Resorts World Sentosa’s waterfront expansion to transform Singapore skyline with “iconic” 88-meter tall light sculpture

Tue 25 Mar 2025 at 05:38
Marina Bay Sands said to be seeking US$9 billion loan facility for expansion, largest in Singapore history

Marina Bay Sands clears other debt after securing US$9 billion loan

Tue 4 Mar 2025 at 04:49
Government report says online gambling poses far greater money laundering threat than Singapore’s land-based casinos

Philippine gaming technology firm DigiPlus setting up Singapore office to drive global expansion

Thu 27 Feb 2025 at 05:16
Load More
Page 2 of 6
Prev123...6Next
Tags: Singapore
Share2Share
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 – The real reason Philippines casino revenues are down

Editorial – The real reason Philippines casino revenues are down

by Ben Blaschke
Sun 30 Mar 2025 at 23:04

After enjoying a post-COVID surge in gaming revenues at its licensed casinos, the Philippines has hit a rocky patch. In...

Inside Thai IRs

Inside Thai IRs

by Andrew W Scott and Ben Blaschke
Sun 30 Mar 2025 at 22:59

No time to read this whole article? Here are the bullet points! With passage of Thailand’s Entertainment Complex Bill through...

Resorts World Las Vegas – Lighting up the north

Resorts World Las Vegas – Lighting up the north

by Andrew W Scott and Ben Blaschke
Sun 30 Mar 2025 at 22:52

Inside Asian Gaming recently visited Genting’s American icon Resorts World Las Vegas to take a closer look at a property...

A baccarat perspective

A baccarat perspective

by Ryan Hong-Wai Ho
Sun 30 Mar 2025 at 22:37

In the first of a two-part series, Ryan Ho explores how gaming innovations and market changes have shaped the prominence...

Evolution Asia
Aristocrat
GLI
Mindslot
Solaire
Hann
Tecnet
Nustar
Jumbo

Related Posts

Inside Thai IRs

Inside Thai IRs

by Andrew W Scott and Ben Blaschke
Sun 30 Mar 2025 at 22:59

No time to read this whole article? Here are the bullet points! With passage of Thailand’s Entertainment Complex Bill through parliament gathering pace as the nation looks to further boost its international tourism appeal, the prospect of a legalized casino...

Resorts World Las Vegas – Lighting up the north

Resorts World Las Vegas – Lighting up the north

by Andrew W Scott and Ben Blaschke
Sun 30 Mar 2025 at 22:52

Inside Asian Gaming recently visited Genting’s American icon Resorts World Las Vegas to take a closer look at a property that hasn’t yet lived up to the hype but which offers undoubted potential as a star of the North Las...

Baby steps

Baby steps

by Pierce Chan
Sat 29 Mar 2025 at 10:20

Despite receiving policy support from China’s central government, Hengqin is still struggling to fulfil its potential as a business hub and to fully integrate with neighboring Macau. IAG examines the key challenges and what must be done to ensure Hengqin...

Grand designs

Grand designs

by Ben Blaschke
Sat 29 Mar 2025 at 10:11

Clark’s Hann Casino Resort has unveiled to Inside Asian Gaming a new Canyon Casino concept that will become the main attraction when a major expansion of the existing casino space is completed in the next 12 months. Philippine integrated resort...



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

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