20 Nov

Gambling News

Genting pledges "transformation" following Singapore's sanctions on RWS for post-Covid performance.

Singapore gaming regulators have extended Resorts World Sentosa’s casino licence for a duration of two years, rather than the customary three. The rationale: “unsatisfactory” outcomes subsequent to the pandemic.
Resorts World Sentosa
On 18 November, the Gambling Regulatory Authority (GRA) announced the continuation of Resorts World Sentosa's licence. The subpar grade was determined based on the evaluation of an independent panel designated by the minister for commerce and industry.

Panellists assessed RWS's capacity to "develop, sustain, and market its integrated resort as an attractive tourist destination that aligns with current market demand and industry benchmarks."

RWS' performance was deemed "unsatisfactory" from 2021 to 2023, as the market progressively recovered from Covid-19. The GRA stated that RWS requires "rectification and significant enhancement."

A spokesman informed the Straits Times that this is the inaugural instance in which the GRA has granted a licence for a duration shorter than three years.

Encountering considerable difficulties
In response to the announcement, RWS operator Genting Singapore acknowledged the evident fact that tourism in Singapore encountered "substantial challenges" over the specified years.

Singapore identified its inaugural Covid case in January 2020. The issue was managed using temporary shutdowns, known as circuit breakers, in conjunction with travel restrictions and rigorous contact tracing. The city generally remained operational and was exemplified as a model of emergency management.

However, tourism stagnated for over two years, commencing in the second quarter of 2020. According to Statista, tourism revenue experienced a resurgence in 2022, increasing from S$1.42 billion (£789.3 million/€947.5 million/$1 billion) in the first quarter to S$4.57 billion in the second quarter. Annual earnings from tourism increased to almost S$14 billion, according to the Singapore Tourism Bureau.

The city-state lifted all Covid restrictions in February 2023, allowing unrestricted entry for all tourists without quarantine. In 2023, tourism receipts amounted to around S$25 billion, with total visitor arrivals reaching 13.6 million.

On 7 November, Resorts World Sentosa reported a third-quarter net profit of S$79.4 million, compared to S$216.3 million in the corresponding period of 2023. Quarterly revenue amounted to S$562 million, reflecting a 19% decline compared to the previous year.

Genting Singapore ascribed the decrease to a reduction in VIP clientele; nonetheless, Maybank analyst Yin Shao Yang asserted that present and forthcoming capital improvements will provide long-term benefits for the resort. 

Resorts World Sentosa 2.0
In a statement subsequent to the GRA announcement, Genting corporate secretary Liew Lan Hing remarked, “RWS is actively advancing its transformation to revitalise and enhance current offerings, thereby intensifying its destination allure and visitor experiences.”

In 2019, Resorts World Sentosa and Marina Bay Sands (MBS), its only market competition, consented to invest a total of S$9 billion in new tourism and MICE facilities in return for an extension of its duopoly until 2030.

This month, RWS commenced the construction of a S$6.8 billion "waterfront lifestyle complex," which will include two luxury hotels and a Minion Land theme park at Universal Studios Singapore. The development will increase the property by 50% and add about 164,000 square meters of gross floor area.

“With the RWS2.0 expansion initiatives in progress,” stated Hing, “RWS is committed to preserving its position as the foremost lifestyle tourism destination.”