The gambling industry in the region of Malaysia and Singapore is in a constant state of evolving and looking for ways to improve its performance. It was recently announced in a Maybank IB Research, that Resorts World Sentosa has the potential to regain Singapore sector share since the Malaysian ringgit is in a better position compared to the Singapore dollar. The prospects for Genting Singapore Plc, the operator managing the gambling resort, as well as its sister firm Genting Malaysia Bhd seem to be promising as well.
This is the conclusion which could be made after reading the recent report published by Maybank. According to the information listed in it, the companies in the Genting group have bright twelve months ahead of them. These include Genting Singapore Plc, the operator of Resorts World Sentosa, its sister company Genting Malaysia Bhd which oversees the operation of Resorts World Genting located in Malaysia, as well as their parent Malaysian conglomerate Genting Bhd. When it comes to VIP and High-Roller gambling, Resorts World Sentosa is the location to be and this makes for a substantial part of the gambling profits.
In the meantime, it was also reported that there is a significant link between the trading rates of the Malaysian ringgit and the Singapore dollar when it comes to the gaming field. The number of high rollers which gamble at the casino resorts at Sentosa as well as the gross gaming revenue of the location are related to the exchange rate. In the report published by Maybank it was further explained that the reason for this link is because, in comparison to Marina Bay Sands, Resorts World Sentosa has many more Malaysian players. The foreseeable future seems optimistic for the profitability of the island casino resort.
Reasons for Higher Gross Gaming Revenue
Resorts World Sentosa on the island of Sentosa could benefit from the strong condition of the Malaysian ringgit at the expense of its rival hospitality location Marina Bay Sands. the currency of neighboring Malaysia was trading as high as MYR3.00 (US$0,762) per a Singapore dollar.
This marks the highest rate of the currency in the last 14 months, which is a significant period of time. Since this country is the main source of gambling patrons playing in Singapore, this could sufficiently impact the gaming field in Singapore. As it could be recalled, the year 2017 brought cost rationalization measures to Genting’s location in Singapore, but this year is expected to see VIP market recovery.
As for the gambling location in Malaysia, Resorts World Genting has recently been through a complete renovation and the casino operator is hoping to attract more players and guests to the gambling facility. The improvements include some special features to the likings of the world’s first Twentieth Century Fox World (Fox) theme park and its indoor theme park, Sky Troopolis. In Maybank’s report, it is stated that this year might bring to the location VIP gross gaming revenue amounting to some 24 percent, whereas its mass market GGR could reach a 14-percent increase.
