Singapore’s casino sector, long overshadowed by Macau, is showing early signs of recovery after years of decline triggered by China’s anti-corruption crackdown and economic slowdown.
When Beijing’s campaign began in 2014, many believed Singapore would benefit as Chinese VIP gamblers sought new destinations. Instead, high rollers largely stayed home, wary of scrutiny, while a weaker Chinese economy further dampened the city-state’s gaming market.
By 2015, Resorts World Sentosa’s net profit had plunged 70 percent to S$193 million ($143.7 million) — its lowest ever — while Marina Bay Sands posted a 10 percent year-on-year decline.
Shifting Strategies
Analysts now say the market has found its floor. Tushar Mohata of Nomura told the Financial Times that Singapore’s casinos are rebounding by pivoting away from Chinese VIPs toward local and regional mass-market players, while expanding non-gaming offerings.
“Genting is doing quite well in non-gaming revenue,” Mohata noted. “Marina Bay Sands hasn’t added capacity since opening, but Genting’s new Jurong hotel appeals to budget-conscious travelers.”
CIMB’s Jessalynn Chen added that Resorts World has redeployed VIP staff to focus on mass-market operations and is enticing new visitors with attractions like Michelin-starred restaurants.
Challenges Remain
Despite signs of improvement, challenges persist. A strong Singapore dollar makes the destination pricier for regional tourists, while new casino projects in Vietnam and South Korea are heightening competition.
Meanwhile, Macau continues its own pivot to non-gaming entertainment. The launch of the $2 billion Studio City Macau, led by Lawrence Ho and James Packer, drew attention for initially excluding VIP tables — a move Ho described as a “business decision.”
However, Alvin Chau of SunCity Group claimed the decision stemmed from regulatory delays, suggesting Studio City’s VIP operations could debut next year.
Studio City has yet to respond to the remarks.
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