• About Us
  • The Team
  • Advertise with Us

The latest news on the gaming industry in Asia

() () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () () ()
  • Home
  • Macau
  • Philippines
  • Singapore
  • Japan
  • Rest of Asia
  • World
  • Industry Talk
  • Trends & Tech
  • iGaming
  • follow
    • Facebook
    • Twitter
    • RSS Feed
    • LinkedIn

Policy, competition, weigh on Singapore casinos: Fitch

Oct 31, 2014 Newsdesk Latest News, Singapore, Top of the deck  


Policy, competition, weigh on Singapore casinos: Fitch

Singapore’s casinos face increased regional competition, and “potential changes to gaming policies that weigh on their medium-term growth and profitability outlook”, said Fitch Ratings Inc in a statement issued on Thursday.

On October 9, GGRAsia reported that a Singapore lawmaker had called for an increase in the levy imposed on Singapore citizens and permanent residents for entry to the city-state’s two casino resorts: Resorts World Sentosa (RWS), operated by Genting Singapore Plc, and Marina Bay Sands (MBS), operated by Las Vegas Sands Corp.

The levy currently stands at SGD100 (US$79) per 24-hour period, or SGD2,000 for a one-year pass.

“Political momentum is unlikely to shift towards greater liberalisation, at least in the short term, with recent parliamentary debates focusing on gaming policy,” said Fitch.

On October 7, Singapore’s parliament passed a bill barring online gambling in the city-state, although with exemptions.

The ratings agency added in its latest statement: “Growth in Singapore [casino] gaming revenue has stalled, and is likely to contract slightly in 2014 with macroeconomic and political factors in China being the principal cause.”

In the second quarter of 2014, Genting Singapore’s net profit actually fell 22 percent year-on-year, largely due to greater than expected impairment charges on receivables – mainly in the form of debt owed by VIP gamblers.

Data from the Singapore Tourism Board, released in mid-October, show that in the second quarter the number of mainland Chinese tourists visiting Singapore fell 47 percent year-on-year, and nearly 44 percent judged quarter-on-quarter.

Fitch said in its statement: “A slowdown in China’s economic growth, recent corruption crackdown, and credit tightening have had a particularly strong impact on Singapore’s casinos. The VIP business, which is mostly Chinese, accounts for roughly half of total gaming revenue at MBS and RWS.”

The agency added: “Fitch expects VIP numbers to improve in the latter part of 2015, and maintains that the tightening restrictions within China are temporary. However, the ability of Singapore’s gaming industry to tap into a Chinese recovery and the broader growth will be challenged in the longer term, especially as it faces increased regional competition from new casinos in the Philippines, Macau and, potentially, Japan.”

The agency said a positive is that Singapore’s “accommodating” gaming tax is fixed at current rates at least until 2022. The city-state levies 15 percent gaming tax on mass-market play and 5 percent on VIP play – plus 7 percent Goods and Services Tax in both cases, compared to Macau’s effective tax rate on gross gaming revenue of 39 percent.

“…however, the tax rate could be revisited as the government considers granting additional licences when the duopoly period ends in 2017,” added Fitch.

“The government has been tight-lipped on the subject, but recent political discussions suggest that it is unlikely that more gaming licences would be granted. However, it remains a potential risk for Singapore’s existing casino operators, and the market remains very attractive to new entrants despite the potential for more regional competition,” said the rating agency.


  • tweet
Related articles
  • Light & Wonder to expand facilities in the Philippines: CEO
    Light & Wonder to expand...

    Sep 29, 2023  

  • Resorts World Sentosa fined again for AML rule breaches
    Resorts World Sentosa fined again for...

    Sep 27, 2023  

More news
  • Sands China to revitalise firecracker factory, old streets
    Sands China to revitalise firecracker...

    Sep 29, 2023  

  • Bloomberry aims to raise up to US$99mln via share sale
    Bloomberry aims to raise up to US$99mln...

    Sep 29, 2023  


Latest News

Sands China to revitalise firecracker factory, old streets

Sands China to revitalise firecracker factory, old streets

Sep 29, 2023  

Macau casino operator Sands China Ltd is to add more cultural and tourism elements to the site of the old Iec Long Firecracker Factory and its surrounding areas in Taipa, as part of a government-led...
Read More
Bloomberry aims to raise up to US$99mln via share sale

Bloomberry aims to raise up to US$99mln via share sale

Sep 29, 2023  

S.Korea Daegu Casino fined US$776k for AML breaches 

S.Korea Daegu Casino fined US$776k for AML breaches 

Sep 29, 2023  

Sign up to our FREE Newsletter

UB8V5.qr.16(Click here for more)

Pick of the Day

”The Philippines has been the primary growth driver, but really the broader Asian gaming industry is something that’s really important to us”

Matt Wilson

Chief executive of casino equipment provider Light & Wonder



Most Popular

  • International Ent to invest at least US$1bln in Manila IRInternational Ent to invest at least US$1bln in Manila IR September 28, 2023
  • Galaxy Ent to build ice rink, bookshop at Macau old shipyardsGalaxy Ent to build ice rink, bookshop at Macau old… September 28, 2023
  • Light & Wonder to expand facilities in the Philippines: CEOLight & Wonder to expand facilities in the Philippines:… September 29, 2023
  • S.Korea Daegu Casino fined US$776k for AML breaches S.Korea Daegu Casino fined US$776k for AML breaches  September 29, 2023
  • Osaka, MGM-Orix sign implementation deal for IROsaka, MGM-Orix sign implementation deal for IR September 28, 2023
Copyright 2014-2023 TEAM Publishing and Consultancy Ltd / All rights reserved
  • Code of Ethics
  • Privacy Policy
  • Useful Links
  • Contact Us