Singapore Casinos With Limited Domestic Market!?

Posted: July 27, 2012 in Uncategorized

Important casino news extract with commentary
27 July 2012

Sands MBS 2nd Qtr Results DOWN

Marina Bay Sands 2nd quarter (2012) gaming results dipped by 7% to USD 550m in gross revenue with Ebitda down by 18%, contributed to a much slower 2nd quarter, with USD330m in profit.

The fact remains, with 1/3 of visitors coming from local domestic market that contribute up to 60% of gaming revenues, MBS must hold on tight to mass market casino patrons. Malaysian patrons number is not moving.

RWS is facing the same dilemma.

New casino control measures will further limit the potential growth of Singapore casinos.
Rolling chip turnover is only 10% of Macau’s. (Roling chip win for Singapore is only averaged 2.42%). So the VIP gaming business is not growing for the two “most expensive” casinos… They need strong & powerful junkets, not those “Mickey Mouse” IMAs. Direct player programs can’t be that attractive and very hard to leverage for turnover. Casino has to bear high credit risk.

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