Singapore Casinos Relying On CCF For VIP Business

Posted: April 9, 2012 in Uncategorized

9th April 2012  MON

Singapore Casinos Relying On CCF (Chip Credit Facility) for VIP Business

Without "powerful" junkets, Singapore casinos could only rely on CCF to solicit VIP players but continue to enlarge the Blackhole of bad debt...

Singapore local newspapers have been reporting an alarming situation of the two casinos under the Integrated Resorts.

So far this year (2012) Marina Bay Sands casino has 21 cases of casino betting bad debt.  Resorts World Sentosa is not spared the burden too.  RWS is chasing after the amount of S$8.5m casino bad debt.  The exact (bad debt) figures of the two casinos could be much more than reported by the newspapers. Just look at the VIP gaming churning numbers.

In view of the lack of “powerful” junkets, Singapore casinos are not able to rely on Mickey Mouse International Market Agents to be the credit providers. Hence, casinos have to provide the credit to retain players in order to churn their top end numbers. Casino has such a system of credit to players, it is called the CCF (Chip Credit facility) by industry people.  Basically the casino would assess each player’s credit “strengths” and allows them to play at the table with credited chips.  It’s not uncommon that after some time, a certain percentage of players will runaway with accumulated chip credit when they incur heavy losses. That becomes a Black hole (default).

The situation in Macau casinos is entirely different; as the casinos are very tight on CCF but it is the junkets who grant credit to their players brought in. Credit risk is therefore with the junkets. However, Macau (or rather, Hong Kong and China) Syndicated Junket groups are very powerful in their funding sources and also, collection methods!

It’s learnt that MBS is setting aside at least 6 – 8% of their gross Wins for credit base to their players.

 

 

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