RWS Casino Loses Its Ground

Posted: May 11, 2012 in Uncategorized

11th May 2012

Professional Ground’s Commentary

Why RWS Casino Can’t Hold Its Ground?

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From the last two quarters (4th 2011, 1st 2012) reported Singapore casinos operating results; it has been very obvious that Genting’s Resorts World Sentosa (RWS) market share has been cannibalized by Marina Bay Sands (MBS), no question asked.

The  reasons:
(1)   MBS has more effective and superior casino marketing organisation as well as system;

(2)  MBS has a larger pool of VIP (high rollers) pool of resources from East Asia region while RWS could only rely on South East Asian “old-list” of known players; the list though contains about 2,000 players but 80% of which are no longer valid as at to date.  This list has been circulated among casinos here for the last 20 years.

(3)   MBS has strong hold over the mass gaming market (frequent and also mid-tier) here and hence, creates a sustainable high HOLD % in casino wins.
Where as RWS could only rely on Malaysian “old uncle and aunty” pool and Singapore taxi drivers. Such low-mass market produces lower average wager amount too.

(4)   MBS’s direct-sourced VIP marketing has evolved into an efficient high valued service system for Asian patrons that’s comparable with Wynn Resorts by now, after several years of experience in Macau. RWS or rather Genting has yet to master this level of high-roller acquisition and retention skills. 
The two recently signed up “Mickey Mouse Junkets” (by RWS) have no impact to a weak VIP business operation. 

Here’s the scores:  1st quarter 2012
Market Share:       MBS 57.5%;          RWS 42.5%
Revenue:               MBS S$1.6b;         RWS S$787m
EBITDA:                  MBS S$593m;      RWS S$376m
Casino daily ave:  MBS S$9.78m;     RWS S$7.28m

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