Thailand is currently seriously considering legalizing land-based casinos on its territory. If this plan does indeed materialize in the future, it could jeopardize the financial viability of the expansion plans for Singapore’s two casino hotels.
This is in any case a note written by the Maybank Investment Bank which expressed concern about Resorts World Sentosa .
Possible decline of mainstream gamers from China
In recent months, a special committee of the Thai parliament has been closely examining the possibility of opening land-based casinos in the country. In a memo published on Tuesday, May 10, Maybank Investment Bank believes that gambling establishments in Thailand, if they are ultimately legalized, could have a significant impact on Resorts World Sentosa.
In this regard, it is worth noting that Chinese players contributed approximately one-third of Singapore’s gross gaming revenue in 2019. Players from Malaysia and Indonesia are expected to prefer the city-state’s casino hotels.
However, this may be less the case for players from China, who are likely to be drawn en masse to Thailand’s hypothetical casino hotels.
While it does not yet have any gambling establishments, the country welcomed 11 million Chinese visitors in 2019, for example. In comparison, Singapore received only 3.6 million. As a result, Maybank Investment Bank is concerned about Singapore’s casino hotel expansion plans.
Resorts World Sentosa, for example, is budgeted at 4.5 billion Singapore dollars, which represents roughly 3 billion euros. If Thailand decides to legalize land-based casinos on its territory, it risks not being financially viable.
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Resorts World Sentosa’s 2022 and 2023 forecasts revised upwards
Otherwise, Maybank Investment Bank is rather optimistic about Resorts World Sentosa. Indeed, it has increased its profit forecast by 163% for 2022 and 123% for 2023, due to the increase in tourists to Singapore due to the easing of health restrictions.
Thus, the general public and VIP high rollers are expected to return to the gaming establishment in greater numbers, reaching by 2023 approximately 92% and 83% respectively of the 2019 levels, before the international Covid-19 coronavirus pandemic.
Extension projects accepted in 2019
Currently, there are two hotel-casinos in Macau: the Marina Bay Sands, owned by the American group Las Vegas Sands, and Resorts World Sentosa, owned by the Malaysian conglomerate Genting. During 2019, both operators agreed to a major expansion of their gaming complex (see article above).
In return, they obtained an extension of the exclusivity of their license in the Southeast Asian city-state until 2030.
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