The IR Casino Levy Scorecard Is Out

Posted: May 19, 2010 in Uncategorized

20 May 2010  Thur

Updates on the Singapore IR casino levy impact (local press)

The negative impact could be worse, without the Levy

In addition to yesterday’s news report about IR casinos levy collection on local gamblers, today the Editor’s Forum (Singapore Chinese press) makes it very clear that the policy of charging a levy ($100) for local gamblers/visitors to the IR casinos proves to be a brilliant idea.  The forum’s key points are,

(1)  Locals are the main source of casino income for the IRs.  Therefore, it is the main source of future social problems induced by casino betting.

(2)  If without the Levy imposed, it is expected that the daily TRIPS by locals to the IR casinos would be much higher! And hence, will have greater negative impact to the society.

(3)   That the casino gambling fever would not subside… (That means, the Levy is here to stay as a first-line safeguard measure).

(4)  The government would maintain a steady stream of income from the levy collection, to work on improving social harmony and review of more preventive measures.  Social costs of the IR casinos must be closely monitored.

Assessment by Professional Ground:

The casino entrance levy imposed by Singapore has proved to be effective to cap the participation rate by locals to about 27% – 41% range.  (Based on 20,000 – 30,000 daily pax to casinos).

It is expected that, should the participation rate of locals increases over time, the authority will not hesitate to impose more restrictions, including a potential increase of entry levy.

Other Asian countries opening up for casinos will also take this Levy Policy at heart.  It looks like a pretty effective lever for limiting negative impact on local population.  That means, in future there will be no “free-for-all” condition allowed by Asian jurisdictions in the process of liberalization of their casino industry, at least for countries like Japan, Korea, Taiwan and Thailand. 

The Casino Entry Levy Policy Works As Effective Lever

—————————

LOCALS PARTICIPATION IN IR CASINOS

19 May 2010  Wed

Highlights of Singapore local press

The local levy collection for casino entry tells a story...

Integrated Resorts Casino Levy Collection Hits $70m
 
 In less than 3 months (85 days), Singapore IR locals entry to casino levy hits $70m in total, as reported by the Chinese press Zaobao.
 
 
What it means:
* A total of 700,000 TRIPS were made by locals during the stated period. ($100 levy per entry that lasts 24 hours)
* Average of 8,235 trips to casinos made by locals daily.
* Assumption:  Averaged of $980 gaming budget per head for wager at casino by locals. (approximately the same level of averaged wager budget as Las Vegas & Macau).
* Analysts still need to “peg” with the above estimated wagers with the Hold/Win % that they project for IR casinos to derive at gross gaming revenue.
* Would tourists fill the voids at IR casino floors? What’s the averaged gaming budget per head by tourists?  (Mainly from Malaysia)
* Locals participation at IR casinos is in the range of 27% – 41% at this stage.  (Based on daily pax of 20,000 – 30,000).  Will this number grow OR stagnate?
 
 
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