Singapore Casino Revenue Plummets In Q3

Singapore’s two casinos operators, Genting Singapore and Las Vegas Sands, have both reported dramatic declines in their gaming revenue, reaching levels not seen for 18 months.
Many economists believe the island-state’s economy was heading for a recession with growth only expected to reach 1.5% by the end of 2012, down from 4.9% in 2011. The latest casino figures will do nothing to dispel that notion, and as Galaviz & Co. managing director Jonathan Galaviz, explains:
“We have been waiting for the novelty factor of Singapore’s casinos to finally wear off, and that time may have finally come. Gaming revenues are sometimes a leading indicator of overall macroeconomic activity in a region. This may be a sign of things to come economically for Southeast Asia.”
Overall, in Q3 Genting Singapore reported a 20% decline in gaming revenue to S$528.4 million (US$432.25m), with profits lower by 47%. In addition, Las Vegas Sands saw its gaming revenue drop by 28% to $470.8 million (US$385.13m) with profits sliding by 18% in the third-quarter.
As well as a slowing local economy, another factor that is seen as a major contributor to the casino’s decline is the stringent regulations levied by the Singapore government. For instance, the industry’s regulator has stifled attempts by the casino operators to lure gamblers with freebies, promotions and discounts by insisting on charging residents S$100 ($82) every time they visit one of the casinos.
Furthermore, the Casino Control Act sets a limit on the number of visits a gambler pays to a casino each month, with a betting limit proposal currently under consultation. In addition, under the amendment to the Act, individuals and families can now apply to set their own visit limits.
According to  Ministry of Home Affair’s statement, the government is currently looking to amend its casino laws so as to combat “criminal activities, strengthen social safeguards and improve tax administration.”