Singapore’s integrated resorts, Marina Bay Sands (MBS) and Resorts World Sentosa (RWS), are poised for a robust 10% growth in gaming revenue in 2024, fueled by a diverse customer base outside of China, according to Fitch Ratings. Despite already surpassing pre-COVID gaming revenue levels by 15% in 2023, Fitch analysts foresee sustained growth driven by increased foreign visitors, addressing the visitor shortfall from China with strategic measures.
Singapore’s Gaming Revenue Outlook:
Fitch predicts a 10% growth in gaming revenue at Singapore’s integrated resorts, MBS, and RWS, in 2024.
The growth is attributed to a diversified customer base outside of China, indicating resilience and recovery post-COVID.
Visitor Shortfall and Mitigation Measures:
As of October 2023, visitor arrivals in Singapore remained 25% below 2019 levels, primarily due to slow recovery in the China market.
MBS and RWS have implemented measures to address this, including the renovation of 1,200 hotel rooms at MBS and extended credit offerings by RWS to players beyond pre-COVID levels.
Regional Growth Forecasts:
Fitch’s optimistic growth outlook extends to Malaysia, with a projected 9% Gross Gaming Revenue (GGR) growth in 2024. This is driven by an anticipated increase in domestic traffic and foreign tourists, particularly at Resorts World Genting.
In Macau, early 2024 is expected to see favorable comparisons, supported by increased visitation due to the return of air capacity to Hong Kong and Macau airports.
Challenges for Land-Based Casinos and Online Sportsbooks:
The year 2024 is anticipated to be challenging for both land-based casinos and online sportsbooks, with weakened demand attributed to cost-of-living pressures.
Land-based casinos, particularly in Australia, are expected to focus on shoring up their financial profiles and compliance measures following recent regulatory actions.
Online sportsbooks are considered better equipped to absorb weakness, with former market leader Tabcorp potentially gaining market share amidst evolving regulatory landscapes.
Regulatory Changes in Online Sports Betting:
The regulatory landscape for online sports betting is evolving, with ongoing harmonization across states and efforts to ban advertising.
Fitch expects the impact to vary among operators, with regulatory changes potentially reducing structural advantages for foreign-owned online agencies and benefiting incumbent operator Tabcorp Limited.
Fitch Ratings’ optimistic outlook for Singapore’s integrated resorts reflects the resilience and adaptability of the gaming industry post-COVID. The projected growth, extended to Malaysia and Macau, indicates positive trends in the broader Asian gaming market. However, challenges persist for both land-based casinos and online sportsbooks, requiring strategic adjustments to navigate evolving regulatory environments and economic pressures. As the gaming landscape continues to evolve, the ability to leverage diverse customer bases and adapt to regulatory changes will be critical for sustained success in the dynamic industry.