The government of Singapore has put its stamp of approval on expansion plans for the city-state’s two integrated resorts, Marina Bay Sands and Resorts World Sentosa.
The operators, U.S. based Las Vegas Sands Corp. and Malaysian gaming giant Genting, have agreed to invest a total of S$9 billion (US$6.65 billion) in their resort complexes, both of which opened in 2010. In return, the government has extended their market duopoly through 2030.
“In view of the substantial investment and to provide business certainty, the government has agreed to extend the exclusivity period for the two casinos to end-2030,” according to a joint statement from the Ministry of Trade and Industry, the Ministry of Finance, the Ministry of Home Affairs and Ministry of Social and Family Development. “No other casinos will be introduced during this period.”
The IRs will concentrate on “non-gaming investments to build new world-class tourism and MICE facilities and attractions, many of which will be first-in-Singapore,” the statement continued. “The integrated resorts’ investments will enhance the vibrancy and tourism appeal of their offerings to remain competitive with other destinations in the region, and bring in more than half a million additional visitors annually.”
The emphasis may be on non-gaming, but operators will also be able to expand their gaming floors, GGRAsia reports. Marina Bay Sands got the green light to increase its gaming area by 13.3 percent up to 17,000 square meters (183,000 square feet). Resorts World was granted an increase of 3.3 percent, to a maximum of 15,500 square meters.
The math matters, according to the government. Because non-gaming areas will expand by a much greater amount, gaming “as a proportion of total floor area” will be reduced from the existing 3.1 percent to 2.3 percent. “The integrated resorts have indicated that the additional gaming provisions (both approved gaming area and gaming machines) will be targeted at higher-tier non-mass market players, who are mainly tourists.” The Ministry of Finance predicted that the investments will create 5,000 new jobs.
Along with the carrot comes a stick: starting April 4, the entry fee for Singapore residents rose 50 percent from $100 to $150. At the end of a current tax moratorium in February 2022, the government will also increase tax rates, reported Asia Gaming Brief. For premium gaming, the rate will rise from 5 percent to 8 percent on the first $2.4 billion in GGR and 12 percent above that level. For mass gaming, the tax rate will rise three percentage points to 18 percent for the first $3.1 billion in GGR and 22 percent thereafter.
The Las Vegas Review-Journal reported that the Sands Corp. will add a 15,000-seat arena, a 1,000-room hotel, and additional convention space to augment its reputation as a meeting and events leader. Sands indicated it will “quickly” begin work on the new project.
“New luxury hotel accommodations and a world-class entertainment venue are exactly the catalysts we need to drive additional visitation to Singapore, and specifically to Marina Bay Sands,” Las Vegas Sands President Rob Goldstein said in a statement. “The additional hotel rooms are extremely important to us in addressing the demand created by our leisure and business tourists and our premium gaming customers.”
“Broadly speaking, we view this as a relatively positive development for Las Vegas Sands, given what we believe to be some mass stagnation, caused by capacity constraints,” said Deutsche Bank gaming analyst Carlo Santarelli.
The Sands news release included a statement from Chairman and CEO Sheldon Adelson, who has kept a low profile in recent months as he’s treated for non-Hodgkin’s lymphoma.
“Marina Bay Sands is an iconic tourism destination that has exceeded all of our hopes in growing leisure and business tourism in Singapore and it is a privilege to receive the Singapore government’s continued support of its development,” Adelson said. “I’m very proud of the commitments we have fulfilled and our ongoing relationship with the people and government of Singapore. Integrated resort development in Singapore is a tremendous example of government and private business working together to maximize an opportunity that benefits all those involved.”
According to AGBNippon.com, Resorts World Sentosa will expand its Universal Studios Singapore attraction with “two new immersive environments—Minion Park and Super Nintendo World.” It will also enlarge its popular S.E.A. Aquarium; create a new Singapore Oceanarium; redevelop its Waterfront Promenade; and add hotels with up to 1,110 new rooms.
