Inside Asian Gaming

INSIDE ASIAN GAMING | May 2010 12 their gross of 5% (plus 7% GST) if they physically check in S$100,000 and above in cash, but they cannot play on a credit basis—even if that credit is supplied directly by the casino as a marker. Scrutiny Even if a Singapore citizen or permanent resident were to check in cash for high roller play, it appears from the local law that his or her casino transaction records would need to be submitted to the Casino Regulatory Authority for scrutiny. According to part 3 Section 11(2a) of the Casino Control (Credit) Regulations 2010, “A casino operator or a licensed junket promoter shall, whenever requested by the Authority to do so: (a) produce to the Authority all records referred to in paragraph (1) and permit the examination of those records, the taking of extracts from them and the making copies of them; and (b) furnish to the Authority all such information as the Authority may require in connection with any such records.” In other words, it appears the reporting requirements for direct players—whether on a cash check in or cheque deposit basis—are potentially as onerous (in terms of the Singapore authorities looking into people’s personal backgrounds) as are the regulations for junkets and junket players. This would probably also rule out many high rollers from mainland China—even on a direct credit basis. “Given that VIP tax in Singapore is half the mass gaming tax, the casinos in Singapore have in theory seven and a half percent to play with, which they can use for promotions with VIP players,” suggested an industry source. Wiggle room “In theory, that could make Singapore’s premium offer very competitive with Macau. Outside of high quality accommodation, premium player ‘comps’ as understood in Las Vegas hardly exist in the Macau VIP segment. The junkets in Macau need to make their margin. Junkets in Macau generally incentivise players by offering cash commissions on the players’ volume of play, rather than other value added services. “The problem I see for premium play in Singapore is that even on a direct credit basis, many players may be put off because of the depth of scrutiny they will be subjected to by the authorities. And the direct player pool is already relatively small given that so many Asian VIP customers are basically controlled by junkets. “I think the strong market for top end business inSingapore is going tobeMalaysia, and to a degree Indonesia. The question mark is how much Genting will soften up in the face of competition from MBS in that premium segment.” The source suggested players from mainland China were virtually ruled out because of the absence so far of junkets. “If it’s an overseas direct player, the casino has got to be able to collect, and as we know, you can’t collect a gambling debt in China,” stated the insider. “A Singaporean gambler who wants to come in and play for high stakes at the casinos in Singapore is going to be subject to financial reporting requirements as well, which he or she may not be comfortable with.” Entry to the MBS casino—one door for Singaporeans, one for foreigners High Mass The main floor could be the key to MBS’s gaming success I f premium play is not going to be the powerhouse of the gaming operation in Singapore that it is in Macau, what about the mass floor at MBS? In appearance, the main floor owesmuch to the stadium-stylegaming space created by Paul Steelman at Sands Macao, with its concentric rings of balconies looking down into the ‘cockpit’ of the table gaming area. At around 161,000 square feet, the MBS main casino floor is more spacious than that of Sands Macao, though according to the company MBS will (initially at least) have fewer tables—600-plus compared to Sands Macao’s 740. MBS is also scheduled to The casino main floor at MBS Marina Bay Sands