Posts Tagged ‘Resorts World Sentosa’

Genting S’pore: Short, Sell or Avoid

In Casinos on 15/07/2012 at 7:05 am

The share price of Genting S’pore did not fall after it was reported that ” Today has learnt that a Casino Regulatory Authority (CRA) probe against Resorts World Sentosa (RWS) is underway over alleged reimbursements of casino entry levies. The investigation, which started almost a year ago, is understood to allegedly involve hundreds of incidences of these illegal reimbursements”

It should have because:

— In May last year, RWS was fined S$200,000 for illegal reimbursements of casino entry levies.

— And remember CAR ordered it to desist from providing free transport for heartlanders to Sentosa?

These show that RWS is not a gd corporate citizen and if found guilty again it could be fined heavily*, and  further penalised heavily.

But this is not the only worry. The main worry is that RWS’ (and that of other Genting group’s casinos) business model are based on

— a strong focus on the grind (retail) market; and

— the use of junket operators to fund high-rollers, passing on the credit risk to the operators, in return for lower margins (it pays commissions to these operators to bring in the high-rollers and take the credit risk).

But S’pore doesn’t like this model. It discourages locals from gambling at the casinos and its licensing rules for operators are very, very tough. So tough, that no-one is applying to be one. It is afraid that shady operators will launder money, something that is happening in Macau. S’pore’s reputation as a financial centre will be destroyed if the casinos here get a reputation of being conduits in money laundering.

So Genting S’pore has a problem growing its revenues.

And then there is the use of Genting S’pore to fund Genting group’s ambitions: the latest being the possibility of making a bid for an Oz casino that an Oz gambling mogul already covets. Could be expensive for Genting S’pore shareholders. Hence the falling share price after Genting S’pore annced that it had increased its stake in the Oz casino.


*Update on 16 July 2012:

Singapore plans to toughen its casino laws and allow the regulator to impose a fine of up to 10% of annual revenues generated by operators Las Vegas Sands and Genting Singapore, local media and Reuters reported earlier in July.

The maximum penalty that CRA can now impose is S$1 million (US$785,000). But after amendments to the law are passed, the fines could potentially exceed US$200 million, Reuters reported.

The changes could be in place by the end of the year.

Bad luck continues to dog Genting Singapore.

In Casinos on 13/11/2011 at 7:33 am

RWS should free the doplhins because bad luck continues to dog Genting Singapore.

In what Genting Singapore called a prudent move in the face of a slowing global economy and tightening credit conditions in China, the company raised its bad debt provisions to S$56.9 million for the third quarter, up from S$23.5 million a year ago.

That equates to 8.5% of its gaming revenue, higher than the average of 3% the past six quarters, Citigroup wrote.

‘However, this is in contrast to Marina Bay Sands, which has not shown higher provisioning, so we wonder if Genting Singapore’s decision was driven by its aggressive credit extension that was seen in the first half of the year,’ Macquarie Equities Research analysts wrote.

There are concerns that its flagship casino, Resorts World Sentosa (RWS), continued to cede market share in both VIP and mass gaming segments to rival MBS.

“Genting Singapore lost significant gaming market share in 3Q11 and also did not see any ramp-up in non-gaming,’ the Macquarie report said. ‘We believe the VIP market share loss is more driven by lack of a competitive product relative to MBS.”

‘We find it interesting that notwithstanding Genting Singapore adding more table game capacity, slots and electronic table games (ETGs) (quarter-on-quarter), mass market failed to ramp and showed 2 per cent QoQ growth. This essentially means that table, slot and ETG yields all declined QoQ – at a time when there was available hotel room capacity,” the Macquarie report said.

The scheduled opening of Bayfront MRT at MBS may also shift some mass-market players away from RWS, it said.

Err maybe freeing the dolphins will help dispel the bad luck?

BTW, Morgan Stanley and OCBC are bullish on the stock.

Related posts:

Dolphins to ACRES: Listen to this child

In Casinos on 08/10/2011 at 8:40 am

Finally we dolphins have a intelligent friend who talks sense, and she is only a child.

Is the government also a party to this as they were the authority which awarded the preferred contract to RWS (Genting Highlands) which asserted that the dolphin exhibition should be one of their attractions?

If so, the best way to pressure the government would be to create awareness, to get more Singaporeans  involved in the issue and to action their involvement by writing letters to appropriate government agencies, their Members of Parliament,  and even to our Prime Minister.

The last two para of an otherwise standard piece from a human friend of Flipper. Listen to her ACRES. The Cynical Investor (no friend as he is a capitalist) tried telling ACRES this some moons ago but was ignored

We dolphins are of the view that either Louis Ng and ACRES are not that intelligent or they got no courage to take on the government. They are afraid they could be locked up as the “Dolphin Conspiractors”?

Finally can someone ask what has happened to our brothers and sisters at Subic Bay? Are they all still alive? Are they well? We have been told by our brothers and sisters in RWS that their human keepers told them that when RWS said the dolphins “under its care” were “doing well” recently, RWS was refering to the Captive Nine on the Sentosa resevation, not the ones at Subic Bay.


Marxist Dolphins

Two dead dolphins & RWS says this?

In Casinos on 04/10/2011 at 7:54 am

A RWS spokesperson noted that the dolphins under its care for the past three years are “doing well” a local freesheet reported.

Excuse me, a total of 27 friends of Flipper were detained in 2008, two died and RWS dares say the dolphins under its care are “doing well”? A fatality rate of 7.4% is not to be dismissed so lightly. Whatever the “Marxist conspirators” and their friends may whine about, none of the detainees died when imprisoned. If any detainee had died, there would be an enquiry. Here two out of 27 dolphins died, and RWS brazenly claims the dolphins are “doing well”.

No wonder the run of bad luck at RWS and Genting group continues.

Remember a few weeks ago, an Australian tourist was hurt on one of RWS’ rides. Before that there were problems with the air-conditioning at RWS, and before that there was an outbreak of food poisoning on one of Genting’s cruise ships.

Best avoid the shares of RWS and the group if you are superstitious. Pretty conclusive that a curse is in place.

Genting S’pore: Give it a break

In Casinos on 29/01/2011 at 8:41 am

Recently, there was an ant–terrorist exercise at RWS. Shouldn’t it have been held at Marina Sands?

In addition to being a casino, there are two more compelling reasons for it being a target for Paki terrorists. It is owned by an American and a church uses part of the place on Sundays to hold services.

Genting on the other hand is HQed in a Muslim nation and is no friend of Flipper — “The enemy of an enemy is my friend”.

Casinos: Flies in the ointment

In Casinos on 22/01/2011 at 5:25 am

The casinos have done better than anyone could have dreamed of. Marina Bay Sands and Resorts World Sentosa generated $420 million in net revenue for the government between April and November last year.And also collected $130 million in casino entry levies on behalf of the Tote Board for the same period.

Too bad Turf Club and clubs scan0009.

But it could have been better. I’m saying this as sumeone who tot S’pore had missed the cruse boat on casinos first by refusing to allow them until 2004 (mid 1990s would have been “betterest”) and by insisting that casinos play down the mass market side of the trade with the integrated resort and high roller concepts. The govmin wanted casinos as part of IRs. It wanted high rollers in dinner jackets, dancing gals and dolphins, fancy eating places: anything but the ordinary punter.

The numbers show that casino and hence the tax revenues could be higher if not for the govmin. As Sentosa has shown with a vengeance, the ordinary punters from M’sia and S’pore with the help of middle class Indon tourists  are the main stay of the casinos, not the high rollers the govmin wanted. And they don’t go there because of the food or gals or for anything else. They go to gamble.

And one problem why the high rollers are not coming: the rules on junket operators have not been finalised.

This takes me to the second “fly in the ointment”. 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.

Casinos: Even better than govmin must have dreamed?

In Casinos on 14/12/2010 at 7:08 am

Analysts believe Singapore’s two casinos will produce gaming revenues of more than [US]$5 billion in the island nation’s first full year of legalized gambling.

… country’s leaders didn’t expect the popularity of gambling. The two casinos are attracting customers from throughout the region, including Indonesia, Malaysia, Australia, India and China.

Las Vegas Review-Journal article

I for one never tot it would be so gd, even though I’ve been for casinos for over 10 yrs. I tot is was an opportunity that GCT and LSL his economic $ financial czar missed. Better late than never.

Casinos: Why govmin investigation only now?

In Casinos, Economy on 09/09/2010 at 7:41 am

Update 10 sept 2010 — RW Sentosa to desist from targeting heartlanders

It shows that RW tot that govmin’s talking the talk that casinos waz for foreigners and that it wanted to protect S’poreans was juz that: talking the talking. And can it be blamed? The bus services started in June (though as I wrote below I saw a sign in February offering the service) but only  two days back did the govmin start investigating.

Once it did so, RW pulled back. MPs should ask which govmin department knew abt this servive, and when. And if a dept knew early, why wait until few days ago to investigate. And did RW have to ask for approval, and did it?

Original piece follows.

I am surprised that the govmin is only now investigating the free bus rides to RW Sentosa. I had assumed that the govmin had been aware of and approved of bringing heartlanders to gamble at RW. Yes I tot the govmin was that cynical: talking the talk on the evil of gambling, but walking the walk on GDP growth by helping the corporate sector.

Hey after all VB throws S$300 billion at some kiddie games but is mean with the poor and homeless, so it is not unreasonable for me  to be cynical.

The fact that the govmin is only now investigating indicates it didn’t know of the buses. Kinda worrying? If it wasn’t aware of this public fact (I saw signs in Bedok and AMK), then what hope of catching mad Paki bombers who wish ill on S’pore. BTW mad Pakis who wish ill on S’pore, don’t throw bombs. Get people to support the PAP and you may achieve the same result.

I am even more surprised to hear of the service beginning only in June. In February I had seen a sign near a bus stop in Bedok indicating that it was a pick-up point for a free bus service to RW Sentosa. Read the rest of this entry »