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<TABLE id=msgUN border=0 cellSpacing=3 cellPadding=0 width="100%"><TBODY><TR><TD id=msgUNsubj vAlign=top>
Coffeeshop Chit Chat - Prelim Assessment of Spore Casino</TD><TD id=msgunetc noWrap align=right>
Subscribe </TD></TR></TBODY></TABLE><TABLE class=msgtable cellSpacing=0 cellPadding=0 width="96%"><TBODY><TR><TD class=msg vAlign=top><TABLE border=0 cellSpacing=0 cellPadding=0 width="100%"><TBODY><TR class=msghead><TD class=msgbfr1 width="1%"> </TD><TD><TABLE border=0 cellSpacing=0 cellPadding=0><TBODY><TR class=msghead vAlign=top><TD class=msgF width="1%" noWrap align=right>From: </TD><TD class=msgFname width="68%" noWrap>expertir <NOBR></NOBR> </TD><TD class=msgDate width="30%" noWrap align=right>10:13 pm </TD></TR><TR class=msghead><TD class=msgT height=20 width="1%" noWrap align=right>To: </TD><TD class=msgTname width="68%" noWrap>ALL <NOBR></NOBR></TD><TD class=msgNum noWrap align=right> (1 of 1) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"> </TD><TD class=wintiny noWrap align=right>29764.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>Preliminary Assessment of Singapore Casino Performance
Edited by: Expert IR
8<SUP>th</SUP> March 2010
Prior to the opening of the Resort World Sentosa, many industry observers including investment analysts speculated that Singapore Integrated Resorts casinos would take ¡¦s market share for breakfast.
Now that the verdict is out; this so called most expensive integrated resort in the world is merely another ¡§run of the mill¡¨ theme park & casino ¡V just a Genting Highland looked alike. On the first two days of the Chinese new year, it was reported that ¡§big crowd¡¨ queued up outside its casino and it turned out to be majority of them are the foreign laborers working in the . Feedback that these lower mass market ¡§patrons¡¨ only went in to have their fair share of free drinks and formed the large pool of ¡§back betters¡¨ (or should it be called no-bet betters?) crowding around gaming tables. The ¡¦s casinos charge locals a flat S$100 entrance levy per day; while foreigners get to enter the casino free of charge, enjoy free offered drinks and free air-con. Many Singaporeans seemed unhappy about this syndrome.
In a cheap thrill attempt, apparently many believed that it was a purposeful leak coming from within the first grand integrated resort casino in , claiming a fantastic S$40m revenue from the casino for the first two days. This piece of cheap thrill news surprised many analysts and industry observers. It is a pity that fantasies do not last; the Minister Mentor of came forward timely and punctured the hot air balloon without any hesitation. In actual fact, the first two days of Chinese New Year casino taking for Resort World Sentosa was only S$3.6m daily in gross revenue. That is at best equates to a small size casino¡¦s normal days revenue or may be worse. The resulted plunging of Genting stock price by 30% (as from Jan 2010 peak) was not an unthinkable outcome.
Some analysts estimated that ¡¦s casino market volume will come close to about 20% of ¡¦s. In addition to that, the poor response from the junkets community has much to say about the IR casino¡¦s VIP gaming pie. Many Hong Kong & Macau junkets apparently went to for a closer look at the IR casino. The interest level is rather low. Two pertinent points were singled out by them, that the unfriendly junket control regulation and > 2.5 hours flight time being the big obstacles.
Such market size is not in congruence with the overstated stock price-to-earning ratio that was quoted earlier by some investment banks. The worse case scenario may happen when the other integrated resort casino (Marina Bay Sands) opens in late April through June 2010. It means, it is already a small market turnover volume coupled with tight-budget pool of local players will be split by two casinos in competition.
Here¡¦s more interesting comments, as follow,
Ronnie Chan, chairman of Hang Lung Properties Ltd., Hong Kong¡¦s fifth-biggest developer by market value, said recently in a Bloomberg Forum in Hong Kong that the two casino-resorts in will fail because they won¡¦t be able to attract high-rollers:
¡§The big rollers are what make money in casinos, they will never come to , it¡¦s a family entertainment¡¨ location. You think big-rollers will go to where they have teeth and fangs coming out sideways? There are too many rules. I was in Sentosa island, I really think that it¡¦s going to be a flop¡K..The whole integrated entertainment industry, I¡¦m worried for them. The good thing about is that if you flop, you¡¦re given a second chance,¡¨ he said.
The Sentosa IR, after its opening had seen more foreign labourers than high-rollers so far. To date, it becomes the private club of aunts and retired old folks on normal days and in particular, a foreign labourers¡¦ town club during weekends. It is likely that the same situation will also happen to another yet to open IR casino.
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Edited by: Expert IR
8<SUP>th</SUP> March 2010
Prior to the opening of the Resort World Sentosa, many industry observers including investment analysts speculated that Singapore Integrated Resorts casinos would take ¡¦s market share for breakfast.
Now that the verdict is out; this so called most expensive integrated resort in the world is merely another ¡§run of the mill¡¨ theme park & casino ¡V just a Genting Highland looked alike. On the first two days of the Chinese new year, it was reported that ¡§big crowd¡¨ queued up outside its casino and it turned out to be majority of them are the foreign laborers working in the . Feedback that these lower mass market ¡§patrons¡¨ only went in to have their fair share of free drinks and formed the large pool of ¡§back betters¡¨ (or should it be called no-bet betters?) crowding around gaming tables. The ¡¦s casinos charge locals a flat S$100 entrance levy per day; while foreigners get to enter the casino free of charge, enjoy free offered drinks and free air-con. Many Singaporeans seemed unhappy about this syndrome.
In a cheap thrill attempt, apparently many believed that it was a purposeful leak coming from within the first grand integrated resort casino in , claiming a fantastic S$40m revenue from the casino for the first two days. This piece of cheap thrill news surprised many analysts and industry observers. It is a pity that fantasies do not last; the Minister Mentor of came forward timely and punctured the hot air balloon without any hesitation. In actual fact, the first two days of Chinese New Year casino taking for Resort World Sentosa was only S$3.6m daily in gross revenue. That is at best equates to a small size casino¡¦s normal days revenue or may be worse. The resulted plunging of Genting stock price by 30% (as from Jan 2010 peak) was not an unthinkable outcome.
Some analysts estimated that ¡¦s casino market volume will come close to about 20% of ¡¦s. In addition to that, the poor response from the junkets community has much to say about the IR casino¡¦s VIP gaming pie. Many Hong Kong & Macau junkets apparently went to for a closer look at the IR casino. The interest level is rather low. Two pertinent points were singled out by them, that the unfriendly junket control regulation and > 2.5 hours flight time being the big obstacles.
Such market size is not in congruence with the overstated stock price-to-earning ratio that was quoted earlier by some investment banks. The worse case scenario may happen when the other integrated resort casino (Marina Bay Sands) opens in late April through June 2010. It means, it is already a small market turnover volume coupled with tight-budget pool of local players will be split by two casinos in competition.
Here¡¦s more interesting comments, as follow,
Ronnie Chan, chairman of Hang Lung Properties Ltd., Hong Kong¡¦s fifth-biggest developer by market value, said recently in a Bloomberg Forum in Hong Kong that the two casino-resorts in will fail because they won¡¦t be able to attract high-rollers:
¡§The big rollers are what make money in casinos, they will never come to , it¡¦s a family entertainment¡¨ location. You think big-rollers will go to where they have teeth and fangs coming out sideways? There are too many rules. I was in Sentosa island, I really think that it¡¦s going to be a flop¡K..The whole integrated entertainment industry, I¡¦m worried for them. The good thing about is that if you flop, you¡¦re given a second chance,¡¨ he said.
The Sentosa IR, after its opening had seen more foreign labourers than high-rollers so far. To date, it becomes the private club of aunts and retired old folks on normal days and in particular, a foreign labourers¡¦ town club during weekends. It is likely that the same situation will also happen to another yet to open IR casino.
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