Industry “stagnating,” says Fitch
The government of Singapore is “unlikely” to license new casinos after 2017, when the two existing licenses end their initial terms, according to a report from Fitch Ratings. The report cited “potentially higher frequency of problem gaming with the local population, and the muted outlook for the inbound tourism sector in Singapore,” according to GGRAsia.
In 2007, Singapore granted 10-year exclusive licenses to the Las Vegas Sands Corp. and Genting Singapore Plc., which then opened Marina Bay Sands and Resorts World Sentosa. The exclusivity period expires in 2017. But last May, Lee Yi Shyan, Singapore’s senior minister of state for trade and industry, told the parliament the city-state had “no plans” to offer additional licenses when the original terms conclude.
According to the Straits Times, Lee acknowledged that the two integrated resorts had contributed between 1.5 percent and 2 percent to Singapore’s gross domestic product and created more than 20,000 jobs, but the destination is not keen on growing the industry. GGRAsia reported that the government is concerned about the social ills associated with gambling. Citizens and permanent residents must pay to enter the two casinos; the fees are SGD100 (US$71) per 24-hour period or SGD2,000 for an annual pass, the publication reported.
Economic concerns also loom large. In its outlook report for Singapore and Malaysia casino gaming in 2016, Fitch forecast that gross gaming revenue in the jurisdiction will “stagnate” next year, after declining by about 10 percent to US$4.8 billion in 2015.
“The anti-corruption crackdown in China, the weaker Indonesian rupiah and softer regional economic growth have caused earnings to plateau,” said the analysts.
