Inside Asian Gaming

June 2013 | INSIDE ASIAN GAMING 7 has maintained that lead up to now. That should perhaps have been the first hint that Singapore is a place where market dynamics can evolve rapidly, and saturation can occur quickly—especially when the industry concerned faces heavy regulation and suspicion, given its potential to damage the reputation of Singapore’s lucrative financial services industry. After all, it’s not the newly created dealer or hotel jobs at the integrated resorts that give Singapore the densest population of millionaire households in the world. By contrast, in gaming-dominated Macau, the casino boom has been a major factor behind the near-tripling of the city’s median salary within a decade to US$1,500 per month (as of 1Q 2013), though it has also hindered the diversification of the economy. Although Singapore registered lofty COVER STORY Macau lessons did not always serve it well in Singapore. The most notable rookie mistake LVS committed on arriving in the Lion City was transposing the games mix at its Macau properties to MBS. Unlike in Macau, where baccarat reigns supreme, roulette is predominant in Malaysia and Singapore, and the MBS main floor initially devoted too much precious floor space to card tables and too little to ones with wheels. But MBS soon spotted its mistake and moved quickly to reconfigure the floor. The market responded in kind, revenue at MBS spiked, and LVS started getting better acquainted with local tastes. RWS had started out with a convincing lead in the gaming revenue race thanks to its two-month opening head start and local knowledge and connections. Most believed the lead would endure for years, but MBS managed to overtake its entrenched rival by 2Q 2011, just a year out of the gate, and Singapore Headline Revenue Market Share Source: Company data and J.P. Morgan estimates 70% 80% MBS RWS 60% 50% 40% 30% 20% 10% 0% 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 25% 75% 47% 53% 43% 57% 41% 59% 53% 47% 53% 47% 53% 47% 53% 47% 51% 49% 49% 51% 48% 52% 54% 46% Singapore VIP Rolling Chips Market Share Source: Company data and J.P. Morgan estimates 70% 80% MBS RWS 60% 50% 40% 30% 20% 10% 0% 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 1Q13 25% 75% 47% 53% 32% 68% 41% 59% 48% 52% 56% 44% 54% 46% 51% 49% 52% 48% 53% 47% 52% 48% 51% 49% Resorts World Sentosa had started out with a convincing lead in the gaming revenue race thanks to its two-month opening head start and local knowledge and connections. Most believed the lead would endure for years, but MBS managed to overtake its entrenched rival by 2Q 2011, just a year out of the gate.