For the casinos, this means no biz from junket operators likely in the foreseeable future. So only income from the small gamblers of S’pore, Malaya and Indonesia, and in-house high rollers where they assume the credit risk. The fourth leg – high rollers courtesy of junket operators – is still missing.
Going by this BT report, before CNY, Junket regulations, on the very tough rules on junket operators that S’pore is putting in place, it is clear that the authorities have decided that they would rather lose high roller traffic than risk S’pore’s wealth mgt and banking aspirations.
Too tight the rules, and the operators will not bring in the high rollers. Too lax the rules, and there goes the banking and wealth mgt aspirations or worse. A reputation as a money laundering centre will kill the banking and wealth mgt industry overnight. The fear and danger is that serious money can be laundered by a few unscrupulous junket operators, the majority of whom focus on servicing genuine high rollers.
Uniquely S’pore: having as major driver-industries, gambling on one hand, and banking and wealth mgt industry on the other.
BTW, servicing high rollers is not a white collar service industry, There is a large element of thuggery and intimidation involved. The operators are legally bound to honour the debts of their high rollers here but the high rollers are often based in places like China where the rule of law can be dodgy and debt collection depends on intimidation.
The above explains why Genting S’pore’s share price is range trading.
Income will come from the punters here, from M’sia and Indonesia. And the convention biz, if the friends of Flipper don’t die. The Gentings group has traditionally prefered to use the services of operators to bring in high rollers rather than bank roll high rollers itself.