RWS Casino Operating Below Expectations

Posted: March 31, 2010 in Uncategorized

Extracts from:  Singapore Business Times, 31st Mar 2010 (Wed)

Striking Headline :  “SHOW ME THE MONEY!”  

Now analysts have finally run out of patience with Resorts World Sentosa casino, Singapore’s first to open integrated resort. 

To summarize what analysts have commented as reported by Business Times, there are the following key pointers:

—  That RWS casino failed to demonstrate its capacity to capture casino patrons after more than one month in operation.  The casino only mans slighly >200 gaming tables out of total capacity of 700.  Even then, for non-peak periods the table ultilazation rates are way too low.  Back-betters / watchers syndrome (i.e. crowd around gaming tables, delay the pace of the game, yet most do not bet) in which also been observed by analysts to be a serious problem.

—  That RWS is unlikely to achieve viable casino revenue based on what the analysts had earlier projected.  Now analysts even started to doubt that Singapore could achieve a lower casino revenue of $2.8b instead of the expected $3.5b – $4b by 2011.  

—  That when Marina Bay Sands opens, cannibalization of patrons will most likely to happen, further dilute RWS’ casino revenue.  Especially that MBS is located more centrally next to the business district and the populated water-front area. 

Is this the final verdict? Our panelists suggest that if Resorts World Sentosa were to continue its below-par standard of performance into the 2nd half of this year, then Marina Bay Sands will become the ultimate market leader, commands a larger market share in casino revenue. That will put RWS into the corner.  

 

Floor efficiency, patrons tracking system, management quality are all important to a casino's success

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