Inside Asian Gaming

INSIDE ASIAN GAMING | May 2010 22 C LSA Asia-Pacific Markets is raising its estimates on the size of the Singapore gaming market now that both integrated resorts are partially open and it has a little more data to work with. The independent brokerage and investment group says it is increasing its 2010 forecast in the part year for the wholemarket by 3.1% to US$2.15 billion, and by 4.1% for the full year in 2011 to US$3.69 billion. The report, Singapore casinos–Sector outlook from Aaron Fischer, Jon Oh and Huei Suen Ng, says the revised figures take account of higher than anticipated spending by day trippers from neighbouring Malaysia. “The opening of MBS is generally considered successful, and the IR is set for a grand opening launch in June 2010. While we have every reason to be even more bullish on Genting Singapore based on recent operational performance, we are [only] mildly moderating our estimates now that we have more tangible data points to work with and to re-validate our initial assumptions. “Weraisedour2010CLSingaporegaming market size forecast marginally by +3.1% to US$2.15 billion, and +4.1% for 2011CL to US$3.69 billion,” states CLSA. “This is to account for an increase in Malaysian day-tripper casino spending, which we increased from SG$70 to SG$100 based on our observation of the current gaming appetite,” say the authors after a research trip to Singapore in early May. The visit followed the soft opening of Marina Bay Sands on 27th April and also reviewed the progress made by Resorts World Sentosa since its first phaseopeningon14th February during Chinese New Year. CLSA estimated no change in its total IR visitor forecast of 9.2 million for 2010 and 15.1 million for 2011. CLSA acknowledges, however, that some other analysts are more cautious on the outlook for the Singapore gaming segment, in light of some question marks over the prospects for VIP play in Singapore in the probable absence of junkets. “Increasingly, consensus is turning more bearish on the prospect of the integrated resorts, and many are quick to conclude that initial gaming revenues for both RWS and MBS are disappointing and the casinos will not be successful,” states the CLSA research. Sunny side “It seems that CLSA is one of the few brokers still positive on the Singapore gamingmarket. Just aswe believe consensus Raising the Roof CLSA bullish on Singapore after opening of second integrated resort Crowds gather for the opening of Marina Bay Sands CLSA revised estimates on size of Singapore gaming market Source: CLSA Asia-Pacific Markets