THE authorities have renewed the casino licence of Resorts World Sentosa (RWS), an integrated resort (IR) operated by Genting Singapore, for two years – notably shorter than the standard three-year term typically granted to casinos by Singapore’s Gambling Regulatory Authority (GRA).
This comes after an evaluation panel appointed by the minister for trade and industry deemed RWS’ tourism performance from 2021 to 2023 as “unsatisfactory”, said the authority on Monday (Nov 18).
While the specific conditions that GRA requires of Genting Singapore were not disclosed, CGS International analyst Tay Wee Kuang said the two-year period of evaluation occurred when Singapore was exiting the Covid-19 pandemic.
“The tourism sector then was heavily affected in both footfall and spending,” he told The Business Times.
In a separate bourse filing on Nov 18, Genting Singapore similarly said that the Republic’s tourism industry, including RWS, had faced “very significant challenges” during the evaluation period, which “coincided with the global pandemic”.
Said Tay: “We think that these are most likely to be tourism-related drivers, given the reference to Section 45 of the Casino Control Act.”
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Evaluating the IR
Under Section 45 of the Casino Control Act, the authority will consider, among other matters, the ability of RWS to develop, maintain and promote its IR as a “compelling tourist destination” that meets prevailing market demand and industry standards.
A GRA spokesperson told BT that the authority must consider the evaluation panel’s opinion when determining if the casino operator meets the tourism suitability criteria.
According to the Casino Control Act, this panel evaluates several factors of the IR, including its visitor appeal and how the IR and its features compare with similar attractions or facilities, or with industry standards.
The panel also looks at the degree to which the IR and its features meet the prevailing market demand of the IR, attraction or facility, as well as the contribution of the IR to the tourism industry in Singapore.
The views of the Ministry of Trade and Industry (MTI), Singapore Tourism Board and Sentosa Development Corporation were considered by GRA as well.
An MTI spokesperson said: “We are unable to disclose the details of RWS’ performance in relation to (its) licence renewal.”
The GRA spokesperson told BT that the unsatisfactory tourism performance is not related to a financial penalty of around S$2.3 million that RWS received in December 2023 for lapses in performing customer due diligence measures for three years, starting December 2016.
Casino operators are required to perform customer due diligence checks when they receive a cash deposit of S$5,000 or more in a patron’s deposit account.
“With respect to RWS’ casino operations, RWS remains suitable to manage and operate the casino,” said the spokesperson.
Boosting tourism appeal
GRA said the panel identified “a number of areas that require rectification and substantial improvement” and recommended that RWS’ next evaluation be carried out in two years, in 2026.
The GRA spokesperson said the evaluation panel must submit its opinion to GRA at least six months before the expiry of RWS’ casino licence in 2027.
CGS International’s Tay said that Genting Singapore should perform better in this period, since tourism in Singapore has recovered to at least 80 per cent of pre-Covid levels, based on international visitor arrivals.
He also does not believe the shortened licence, as a result of the evaluation, will have a bearing on tourist perception of RWS.
“With the pipeline of Singapore Oceanarium, Minion Land, and the newly revamped Forum being rolled out in the first half of 2025, I think RWS will likely draw more tourists and locals alike next year,” he said.
RWS recently announced plans to complete a major expansion by 2030, in its bid to attract more visitors to the IR. The expansion – at a cost of S$6.8 billion – includes the construction of a waterfront promenade, a four-storey retail, entertainment and dining podium, and two new luxury hotels.
The major expansion comes as Genting Singapore works to boost the appeal of RWS, amid the slower recovery of international visitor arrivals in Singapore, increased competition, and falling revenue from its gaming business.
In its most recent third-quarter business update, Genting Singapore posted a net profit of S$79.4 million for the quarter, down 63 per cent from S$216.3 million in the year-ago period.
Revenue for the period fell 19 per cent to S$561.9 million. Gaming revenue dropped 28 per cent on the year to S$330 million, while non-gaming revenue ticked up 1 per cent to S$231.8 million.
Separately, IR peer Marina Bay Sands’ casino licence will end in April next year, after a three-year term. The Las Vegas Sands-operated IR is expected to fork out US$8 billion in an expansion of its own, with a fourth tower slated to be completed by early 2031.
Shares of Genting Singapore slid 0.6 per cent or S$0.005 to S$0.77 on Tuesday, after the announcement.
Additional reporting by Michelle Zhu
This post was originally published on here
