Singapore Casinos Face Odds To Survive

[makapaaa]

<TABLE id=msgUN border=0 cellSpacing=3 cellPadding=0 width="100%"><TBODY><TR><TD id=msgUNsubj vAlign=top>

Coffeeshop Chit Chat - Singapore Casinos Face Odds To Survive</TD><TD id=msgunetc noWrap align=right> </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>Mar-16 10:01 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 6) </TD></TR></TBODY></TABLE></TD></TR><TR><TD class=msgleft rowSpan=4 width="1%"> </TD><TD class=wintiny noWrap align=right>30202.1 </TD></TR><TR><TD height=8></TD></TR><TR><TD class=msgtxt>Finally. Someone Who Really Knows About Casino Equation Speaks Out
Commented by: Professional Ground Gaming Panel
17<SUP>th</SUP> March 2010
The subject of whether Singapore Integrated Resorts (Resorts World Sentosa and Marina Bay Sands) will be a sound investment has been debated over and over again by investment analysts, gaming professionals and travel trades for the past two years.
Over time, our Professional Ground panelists posted many solid reports and commentaries on this Blog, to serve the good of many interest parties, with regard to understanding the myth as well as the hard reality of casino operations and essentially what makes it tick.
Recently, one of our professional panelists (from Platform Asia Consulting) has just conducted a session of Asean investors¡¦ brief about Singapore IR¡¦s potential earning from casino operations. Many of them still having the hope of may be the good stuff has yet to come, when Marina Bay Sands (MBS) opens, even though the Resorts World Sentosa posted very disappointing tell-tale sign results on the opening of its casino. In fact, when MBS opens, the purposeful casino patrons pool will not suddenly expand by 2 or 3 folds. It is still about the same market size here.
There is always this tendency of casinos should make money as it is a betting business, and the whole world¡¦s human beings are gamblers. Many have forgotten that casino is like any business especially most similar to financial sector is that at the core of casino¡¦s management decisions remains this key topic of Risk Management ¡V financial risk, operational risk and ultimately risk-reward model at play.
We congratulate Mr. Ronald Tan, a gaming consultant who comes forward to express his WORRIES with his very open assessment of Singapore IR¡¦s situation in The Straits Times. Indeed, our panelists had earlier posted related articles ¡§Why Macau Casinos Could That RWS Can¡¦t¡¨, ¡§Unique Challenge for The IR Casinos¡¨ and, ¡§The 60-60 Rule for Singapore IR¡¨ on Professional Ground¡¦s Home Page for reference.
Readers who are interested to know more may refer to other professional articles posted on this blog.
However, we slightly defer from Mr. Tan¡¦s view that a ¡§Perfect Casino¡¨ can be established, in Singapore or in Asia per se. Technologies are definitely smart tools that could be used to shape business processes and to gain competitive advantage; but not in all cases and environment. Asian gaming per se, the culture of betting in physical casino by and large is very different from lottery betting businesses. In Macau, many casinos have been trying out electronic table game devices and also, semi-automated table baccarat betting etc. but has not gain any ground. Asian casino patrons who can afford to bet higher amount on table games, still deep down in their heart want to ¡§beat¡¨ the house with a real dealer in front of them. It¡¦s just more human. This is Asia.
For Singapore casinos to turn towards overwhelming use of technologies to try saving the day may result in another ¡§Waterloo¡¨ scenario. The two IR casinos are left with not much choice, but to keep a highly efficient floor management that yields greater Hold % for mass gaming market segment with sustainable volume, coupled with excellent capacity in (affluent) customer acquisition. The VIP? At this moment it is still a touch-n-go situation. The reason is very obvious ¡V policy & control.

Professional Ground: Technologies may not save the day... for Singapore Casinos

</TD></TR><TR><TD> </TD></TR></TBODY></TABLE></TD></TR></TBODY></TABLE>

 

[Cestbon]

Both casino will fail. The 1st to collapse will be MBS due to cost over $5billion. To operate the whole casino will cost more than $3million/day alone not included hotel and F&B.
Very soon or next year there will be no more levy for Singaporean/PR.
Just imagine how many Casino in Las Vegas are really operate in profit many are losing money. Macau still can hold on becase of China and Hong Kong.
In order to save cost both Casino will have to employ FT with salary less than $1.5k.

 

[myfoot123]

Without Singaporeans support they will fail. I have boycott RWS for being anti-Singaporeans.

 

[Ramseth]

Susan Long. Interesting. The one who brought down T.T. Durai.

 

[longbow]

I think investment decision for casino should be seen from invester point of view.

From what I understand, Genting Highlands (their golden goose) is operating on a very short term license (monthly?). And in exchange for the renewal, bags of $$$ are funnelled to political entities. Given the rise of right wing Islamic parties who know how long it may last - think of it - a Chinese owned casino in Malaysia?? How much national service has Mr Lim been asked to help out with over the years?

So for Mr Lim, he is willing to pay big $$$ to hedge against losing that Malaysian license. With an outlet in Singapore he can tap on the loyal gamblers built up over the years - Singapore is just less than an hour's flight and he can cheaply shuttle his big wig players from KL to Singapore with Gulfstream 5 and still make $$. Furthermore, with Singapore casino, Mr Lim may be able to turn around to the politicos in malaysia asked that the bags of $$ be reduced (if not I close shop - doubt if Malaysia can approve another entity to replace Genting if they walk).

Singapore is also homeground for Mr Lim.

So for Mr Lim's POV, RWS makes sense. It is just that it takes a few more years to pay off the loan.