In Singapore last summer, the apprehension of an alleged multibillion-dollar money laundering gang sparked concerns that the state’s casinos would suffer long-term fallout from the incident—including an exodus of valuable VIP players. But analyst Samuel Yin Shao Yang of Maybank Research says that, based on traffic at Resorts World Sentosa (RWS), those fears should be put to rest.
According to Inside Asian Gaming, RWS operator Genting Singapore saw a 13 percent drop in share value when news of the arrests first broke in mid-August. But recent conversations with the operator “reveal that … it is business as usual for the VIP market and the mass market continues to grow,” Yin wrote.
“Genting Singapore … did not notice any discernible decline in its engagement with VIPs, whether they be via its private jet program that was introduced earlier this year or ‘meet-and-greet’ celebrity events.” Yin reiterated his “buy” rating on Genting Singapore, based on the continuing return of players from the Chinese mainland.
In mid-August, authorities announced the arrests of 10 people for alleged forgery, money laundering and resistance to lawful apprehension. The group carried passports from China, Cambodia, Cyprus, Turkey and Vanuatu, but reportedly all hailed from China. Per IAG, the suspects have been linked with illegal iGaming sites that cater primarily to gamblers on the mainland.
Despite Maybank’s optimism, the Washington Post reported that Singapore—also home to Marina Bay Sands, a Sands China property—has taken a reputational hit in the case, which it called one of the world’s largest money-laundering scandals.
According to the Post, Singapore has “long capitalized on its reputation for clean governance and zero tolerance for crime to attract foreign investments and the well-to-do,” which has made it the world’s “third most popular destination, after Switzerland and Hong Kong, for the global rich to park their assets.”
Critics say the money-laundering case shows Singapore hasn’t done enough to curb illegal transactions, and “sparked questions in parliament about tightening money-laundering rules and immigration checks,” the Post reported.
However, Second Minister for Home Affairs Josephine Teo says the apprehension of the suspects is proof that the jurisdiction “takes money laundering seriously.
“We do not turn a blind eye to any risks, once we become aware of them. This is not the first time that we have taken serious enforcement action against money laundering offenses. Nor will it be the last.”
Teo said the investigation “has strengthened our reputation as a serious, high-quality financial center and for law and order.”
Meanwhile, in September, air travel from China to Singapore reached “80 percent of September 2019 levels,” said Maybank’s Yin. The research group expects Genting Singapore’s VIP segment to recover 87 percent of 2019 gross gaming revenues (GGR) in 2023. It projects that mass market GGR will exceed 2019 levels at 105 percent, and will grow to 120 percent in 2024.
