Fitch Ratings said in a report that Singapore is to see a further decrease in gross gaming revenue in 2016, after it dropped more than 10% to SGD6.7 billion ($4.8 billion) in 2015. Currently, Singapore with its two integrated casino resorts is the world’s third most preferred and profitable gambling destination.
Fitch analysts attributed the considerable decrease and the further drop expected in the city-state’s casino revenue to the anti-corruption campaign in Mainland China, the overall economic slowdown in the region, and last but not least, the weaker Indonesian rupiah.
The anti-graft crackdown introduced by Chinese President Xi Jinping, aimed at illegal overseas money transfers and underground leaders, had an extremely adverse effect on the casino industry in the Asia-Pacific region. The cleanup campaign resulted in Chinese high rollers withdrawing from Macau, the world’s most popular gambling hub, and traveling to other destinations. And according to Fitch experts, the anti-corruption crackdown has impacted the Singapore gambling industry and revenue generated from it, as well.
The recognized statistical rating organization also said that the Singapore government is not likely to issue casino licenses to new gambling operators in 2016, despite the fact that the exclusivity period of the current licensees – Resorts World Sentosa and Marina Bay Sands, is set to expire next year.
Fitch analysts said that the present duopoly is to continue for a bit more time, due to concerns that new gambling venues may have negative effect on local population, increasing the risks of more people showing symptoms of problem gambling. What is more, Singapore officials seem worried about the not particularly positive outlook for inbound tourism and this is why they will most probably maintain the current status quo.
The Lion City, as Singapore is often referred to as, legalized its gambling industry in 2006, after heated public discussions that took years. The city-state decided that it could support no more than two integrated resorts, offering not only casino options, but also numerous accommodation, entertainment, and food and beverage ones.
Gambling giants Las Vegas Sands and Genting Group were selected as the preferred candidates for the two multi-billion complexes. Las Vegas Sands developed the so-called Marina Bay Sands, investing more than $5.7 billion in the project, which now offers a large convention center among other things.
Malaysia’s Genting Group, on the other hand, developed the Sentosa site. The gambling operator spent a little less than $5 billion on the complex, which was required to feature unique attractions among other exciting options. Genting worked in partnership with Universal Studios for the development of such attractions.
Both integrated resorts proved to be instant success when launched in 2010, turning Singapore into the world’s third most profitable gambling destination.
