"Are the chips down for Singapore's two casinos? - CNA 23 May 2016
SINGAPORE: In 2010, Singapore’s two casino resorts opened to great fanfare and massive success, but the city-state’s gaming market is facing unprecedented challenges – from a corruption crackdown in China that is deterring high-rollers, to Asian rivals keen to grab a share of the lucrative market.
The Las Vegas Sands-run Marina Bay Sands (MBS) has seen revenue decline on a year-on-year basis for the last five quarters, while the losing streak has gone on for the last seven quarters for its cross-town rival, Genting Singapore’s Resorts World Sentosa (RWS).
"The reality is that the same factors impacting Macau – namely the anti-corruption drive and a slowing Chinese economy – are also impacting Singapore. In addition, currency weakness from Indonesia and Malaysia relative to the Singapore dollar is a contributing factor," said Mr Grant Govertsen, an analyst at Union Gaming Group."
Hmm. A business that depends on corruption in other countries. Not a sustainable model for sure unless it is everyone's wish that 'corruption should be promoted, embraced and indoctrinated' in one's culture! OMG!! Hope that will NEVER happen!!
Lessons for me are:
1. if the big guys don't come, hit the many small guys! Bring in the elderlies who are idling at home to the casinos. Help them to enjoy 'gaming' and NOT gambling. If they lose some money, hopefully not their, what the local would call: 'coffin money', it is ok. It is helping boost a little bit the local economy so that we can have GROWTH!;
2. it is a no brainer model that is easy to copy if you are just talking about 'gaming', or for some other countries how are more directly and honest about it, GAMBLING. Build the casinos can the gamblers will come. If they don't come from other countries, just let the locals come and gamble! It is money after all. Whether it is the locals' money or foreigners' money, it does not matter. Money is money as the money-minded would tell you!;
3. actually the BIGGEST threat of all casinos around the region has not even started! If the PRC government suddenly decide, I am not saying it will ever do such a thing, that they want the money from 'gaming', they can just open casinos in their own country everywhere! Not just in Macau. It is a bit like building airports at one stage of its development. Everyone want to have an international airport of repute to welcome foreigners and foreign airlines and make big money on tourism and tourism-related businesses. Alas, it was not to be. A few airports near Guangzhou, Shanghai, Shenzhen are pretty big and impressive but attracting less than 20-30% of their capacities?
So, are the chips down on Singapore's casinos? The short answer is: YES for the time being. When the anti-corruption campaign stops in PRC, maybe the corrupted officials will return. The long answer is: YES as more competitions apt the gaming model. Still, the casinos should make money if they pay themselves less and earn a bit less. No more super profit but still profitable as you can never beat the house! That is the RULE. And ONLY RULE in gambling!!
SINGAPORE: In 2010, Singapore’s two casino resorts opened to great fanfare and massive success, but the city-state’s gaming market is facing unprecedented challenges – from a corruption crackdown in China that is deterring high-rollers, to Asian rivals keen to grab a share of the lucrative market.
The Las Vegas Sands-run Marina Bay Sands (MBS) has seen revenue decline on a year-on-year basis for the last five quarters, while the losing streak has gone on for the last seven quarters for its cross-town rival, Genting Singapore’s Resorts World Sentosa (RWS).
"The reality is that the same factors impacting Macau – namely the anti-corruption drive and a slowing Chinese economy – are also impacting Singapore. In addition, currency weakness from Indonesia and Malaysia relative to the Singapore dollar is a contributing factor," said Mr Grant Govertsen, an analyst at Union Gaming Group."
Hmm. A business that depends on corruption in other countries. Not a sustainable model for sure unless it is everyone's wish that 'corruption should be promoted, embraced and indoctrinated' in one's culture! OMG!! Hope that will NEVER happen!!
Lessons for me are:
1. if the big guys don't come, hit the many small guys! Bring in the elderlies who are idling at home to the casinos. Help them to enjoy 'gaming' and NOT gambling. If they lose some money, hopefully not their, what the local would call: 'coffin money', it is ok. It is helping boost a little bit the local economy so that we can have GROWTH!;
2. it is a no brainer model that is easy to copy if you are just talking about 'gaming', or for some other countries how are more directly and honest about it, GAMBLING. Build the casinos can the gamblers will come. If they don't come from other countries, just let the locals come and gamble! It is money after all. Whether it is the locals' money or foreigners' money, it does not matter. Money is money as the money-minded would tell you!;
3. actually the BIGGEST threat of all casinos around the region has not even started! If the PRC government suddenly decide, I am not saying it will ever do such a thing, that they want the money from 'gaming', they can just open casinos in their own country everywhere! Not just in Macau. It is a bit like building airports at one stage of its development. Everyone want to have an international airport of repute to welcome foreigners and foreign airlines and make big money on tourism and tourism-related businesses. Alas, it was not to be. A few airports near Guangzhou, Shanghai, Shenzhen are pretty big and impressive but attracting less than 20-30% of their capacities?
So, are the chips down on Singapore's casinos? The short answer is: YES for the time being. When the anti-corruption campaign stops in PRC, maybe the corrupted officials will return. The long answer is: YES as more competitions apt the gaming model. Still, the casinos should make money if they pay themselves less and earn a bit less. No more super profit but still profitable as you can never beat the house! That is the RULE. And ONLY RULE in gambling!!
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