SINGAPORE: Singapore is poised to be the second biggest gaming destination in the world after Macau.
Last year, analysts had made the same prediction but the outcome from the two integrated resorts in Singapore fell short of this expectation.
Analysts are
confident that after Marina Bay Sands (MBS) strong numbers, gross gaming
revenue from the two local integrated resorts may overtake Las Vegas
Strip by end of this year.
MBS raked in gross gaming revenue of over US$2 billion last year.
Meanwhile, its rival Resorts World Sentosa recorded net gaming revenue of close to US$2.6 billion in 2011.
Analysts said the combined gross gaming revenue of Singapore's two casinos is about US$5.7 billion.
This
is just a shy away from the total gaming revenue of US$6.1 billion
collected from more than 20 casinos along Las Vegas Strip.
With
MBS's recent strong first quarter showing, some analysts are upbeat that
Singapore's gaming industry will overtake Las Vegas this year.
MBS
posted net revenue of US$848.7 million in the first quarter this year.
Its casino earnings rose 51 per cent to US$701.3 million.
Terence
Wong, co-head of research at DMG and Partners Research said: "For this
year, it should be able to take over Las Vegas as the number two top
gaming spot globally and that is on the back of huge masses going over
there (Marina Bay Sands) and on top of that, I think VIPs are much sort
after. RWS already has their own international marketing agents which
bring them (patrons) over here."
Analysts expect Singapore's gross gaming revenue to hit US$6.5 billion this year versus the Strip's US$6 billion.
Experts said Singapore remains attractive to the high rollers because it offers more than just gaming.
Unlike
Macau where gaming accounts for 90 per cent of its economy, there are
other tourist attractions and activity for the family too.
Director
of corporates at Fitch Ratings Nandini Vijayaraghaven added: "Gaming in
Singapore is stable to positive, it is a preferred tourist destination.
It is a regulated market with two casinos, both operating under long
licence period and in exclusivity period build within the licence
period."
Casino patrons' stay in Singapore is usually longer on each visit of around four days.
This helped boost income from the integrated resorts as well.
In
the fourth quarter last year, data from the tourism authority show that
tourists spent S$1.3 billion in sightseeing and entertainment including
gaming.
Richard Linstrom, dean at University of Nevada, Las
Vegas, Singapore Campus, said: "Las Vegas Sands has a kind of unique
expertise in the high rollers upscale market, I think it'll be difficult
for regional operators over the short term to match that. I think over
the longer term there'll be adjustments by all the companies in Asia and
there'll be room for everyone to compete."
Genting Singapore will report its earnings, which includes Resort World Sentosa on 10 May.
Analysts expect gaming revenue from Resorts World Sentosa to increase but it may fall short of the performance shown by MBS.
- CNA/ck
Gaming != Gambling...
I tot really play computer games...