Singapore Casino Growth Prospect

Posted: July 11, 2012 in Uncategorized

By: Panel Experts, Professional Ground

Marina Bay Sands Might Gain Advantage Over The Recent Casino Rule Change

The recent casino control rules review might just play into the hands of Marina Bay Sands.

Reasons:

– The domestic casino patrons demography at Sands (MBS) is very different from those of Resorts World Sentosa (Rws). RWS casino local patron base is mainly the lower-mass gaming market segment. Casino visit limits based on vulnerability will likely to hit RWS more than MBS.

– RWS Internation Market Agents (IMA) are of lesser strength than those operating in Macau. Tighter control of junket commission will hit this group of Agents, as they need more leeway from casino in order to sustain larger credit terms and exposure.

– VIP credit by casinos. The new ruling requires a 100% draw-down of front money and settlement of play program before any credit to be granted to VIP players. That will limit the turnover of VIP wagers for each visit. It will also requires the junket players to demand for higher limits of credit, hence add on pressure on the IMAs. RWS will face greater challenge than MBS in expending VIP business.

It is envisaged that MBS might gain advantage over RWS with the new rule-change.
Time will tell…

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