GGRAsia – Clampdown on junkets in Macau not to impact RWS: CEO

Clampdown on junkets in Macau not to impact RWS: CEO

May 24, 2023 Newsdesk Latest News, Singapore, Top of the deck

Casino operator Genting Singapore Ltd does not expect to be hurt by the overall decline of junket operations in the rival jurisdiction of Macau. The firm – a subsidiary of Malaysian conglomerate Genting Bhd – is the operator of Resorts World Sentosa (RWS, pictured), one of Singapore’s two casino resorts.

The comments were made by the company’s chief executive, Tan Hee Teck, during the company’s annual general meeting in April, according to minutes published on Monday.

In a question-and-answer session with shareholders, Mr Tan said that “the clampdown on junket operators in Macau would not affect Resorts World Sentosa’s gaming operations”. That was because “Singapore is a highly regulated market where junket operators are prohibited”.

He added: “Resorts World Sentosa takes compliance as a culture very seriously and would comply with all applicable rules and regulations of the Gambling Regulatory Authority of Singapore.”

Mr Tan recognised that Macau’s overall gaming industry “was coming back very strongly” after the relaxation of Covid-19 related measures, starting from January.

Macau’s junket sector has faced several headwinds in recent years. The Macau authorities have introduced a number of regulatory changes to the sector in order to tighten supervision of junket operators. The city’s Legislative Assembly is currently discussing a bill on casino concessionaire- and junket-issued credit for gambling.

The junket sector saw a major drop-off in business, coinciding with the high-profile detention – in November 2021 and January last year respectively – of two of the biggest junket bosses: Alvin Chau Cheok Wa, of the Suncity brand, and Levo Chan Weng Lin, of the Tak Chun brand. Mr Chau was eventually sentenced to 18 years in prison; Mr Chan was last month jailed for 14 years.

The total number of licensed gaming junkets in Macau had shrunk to 36 in January this year, compared to 235 a decade before.

Thailand? Wait and see

Genting Singapore’s management reiterated during its latest annual general meeting the firm’s decision not to pursue a Japan casino licence for now. It had been looking at Yokohama at one stage. The firm’s executive chairman, Lim Kok Thay, mentioned in the latest meeting what he termed the “uncertainty” related to the Japan market.

Mr Lim also commented on reports that Thailand was considering allowing casino gambling. He noted that the country had “yet to promulgate any process towards legalisation of casinos”.

But the executive chairman added that, if a casino scheme in Thailand were seen as a “worthwhile investment”, the company’s board and management “would give it a careful consideration”.

In January, a member of Thailand’s House of Representatives – the lower chamber of the bicameral parliament – was quoted saying it could be up to three years before any decision on casino legalisation is made. A general election took place in Thailand on May 14, with an alliance of eight opposition parties taking up the majority of the lower house seats, and now seeking to form government.

Genting Singapore also gave an update on a SGD4.5-billion (US$3.34 billion) expansion of Resorts World Sentosa, pledged to the city-state’s authorities and known as “RWS 2.0”. Mr Tan explained that substantial capital expenditure related to the scheme was expected to be incurred in 2024 and after.

He also noted that operations at Resorts World Sentosa – in particular related to hotel occupancy – were still facing limitations, as airline capacity constraints continued to impact the overall number of foreign visitors to Singapore.

Mr Tan explained during the annual general meeting that the occupancy rate of hotels at Resorts World Sentosa for 2022 was about 80 percent. He added that the occupancy rate could be “better”, with increases in air flights as more than 75 percent of the casino resort’s business had come from outside Singapore prior to the pandemic.

Genting Singapore reported net profit after taxation of just above SGD129.2 million (US$96.9 million) for the first quarter of 2023, an increase of almost 220.0 percent from the prior-year period. The result was up 7.8 percent from the preceding quarter, according to highlights of first-quarter performance published earlier this month by the firm.