5 December 2011
SINGAPORE - The Republic's gaming sector is expected to rake in close to US$7 billion (S$9 billion) next year in revenue, as it cements its position as the world's second most lucrative gaming market.
According to a report by Citi Group, the combined gaming revenue for the casinos at Marina Bay Sands (MBS) and Resorts World Sentosa (RWS) could be around US$6.9 billion next year. This after Citi factored in a 13 per cent year-on-year increase from this year's numbers.
Some analysts and industry players have said that they expect Singapore's gaming revenue this year to surpass the forecast for Las Vegas. However, following a turnaround in the Las Vegas gaming market, the numbers for these two markets could be too close to call this year.
Citi's report noted that MBS and RWS are already estimated to have racked up US$4.4 billion in gaming revenues over the first three quarters of this year - prompting it to revise upwards its revenue forecast for this year from US$5.9 billion to US$6.1 billion.
Other analysts have forecast Las Vegas' gaming revenue this year to hit US$6.2 billion.
According to Citi's report, Macau will remain the world's biggest gaming market next year with a projected US$40 billion in gaming revenues.
In Singapore, MBS is expected to "continue to outperform Resorts World Sentosa, leading to over 50 per cent market share in 2012", the report added.
According to Citi, hotel occupancy at MBS reached 98.1 per cent this year with average daily room rates up 11 per cent quarter-on-quarter in Q3 this year.
It noted that RWS' share of VIP segment volume slid to 44 per cent in Q3 this year, from about 52 per cent in the previous quarter.
RWS' S$802 million net revenue in Q3 was also slightly lower than Citi's estimate.
Nevertheless, the report expects gaming revenue from high rollers to improve next year for RWS, which is owned by Genting Singapore.
It added: "While we expect the gaming revenue growth in Singapore to trail that in Macau, Genting Singapore should benefit from an improved VIP product in early next year when its 22 new Villas are scheduled to open (the Equarius Hotel will open by year end, with remaining resort facilities completed by the middle of next year)."
Is Nevada recovering? It depends on who you ask ...
Across the state of Nevada - where the famous Las Vegas Strip lies - a battle of perceptions is being waged over whether it is on the edge of recovery, or still falling four years after the collapse of its mighty housing, tourism and construction industries.
It is a story unfolding across the United States - only in Nevada it is worse because the state depends heavily on money spent by people from elsewhere. Nevada continues to top the nation in unemployment, foreclosures and bankruptcies rates.
The tepid return of the gamblers and revellers who drive Nevada's economy has drawn cheers from government and business leaders. They point to rebounding convention attendance numbers and hotels rates as cash-bearing tourists from healthier states return to the Las Vegas Strip. The jobless rate has dipped slightly and unemployment benefit claims are down.
But the housing market remains in a free fall and workers are either fleeing the state or dropping out of the work force altogether.
The Nevada Gaming Control Board recently estimated that casinos statewide made US$53.8 million (S$69.1 million) less from gamblers in September than they did a year ago, a 6 per cent drop. The people who are hitting the casino floor are shunning the upscale table games that keep casinos flush and are instead sticking to less profitable slot machines. Casino-generated taxes were down 9 per cent in October from a year ago.
Mr Jim Rogers, 49, who lost his construction job three years ago, said: "There are no jobs. The casinos are operating on a meagre staff. Where they used to have 10 people, they now have six people doing the work." AP
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