Singapore renews Resorts World Sentosa licence for two years
The Gambling Regulatory Authority (GRA) of Singapore has awarded a two-year extension to the casino license of Resorts World Sentosa (RWS), a departure from the standard three-year term. This decision comes amid concerns regarding the casino’s recovery post-pandemic, which has been deemed “unsatisfactory.”
On November 18, the GRA announced this license extension following a comprehensive assessment conducted by an independent panel appointed by the Minister for Trade and Industry. The panel evaluated RWS’ ability to “develop, maintain, and promote its integrated resort” as a leading tourist destination, taking into account market demand and industry standards.
The assessment highlighted that RWS exhibited “unsatisfactory” performance from 2021 to 2023, a period marked by the ongoing recovery from the COVID-19 pandemic. According to the GRA, there remains a pressing need for “rectification and substantial improvement” at the resort.
This marks the first instance in which the GRA has issued a casino license for a duration of less than three years, signaling heightened scrutiny in the industry.
Navigating Significant Challenges
In response to the GRA’s decision, the operating entity of RWS, Genting Singapore, acknowledged that tourism in Singapore faced “very significant challenges” during the assessed timeframe.
Singapore recorded its first COVID-19 case in January 2020 and implemented various management strategies, including temporary shutdowns and travel restrictions, to mitigate the spread of the virus. The city-state was recognized for its effective emergency management, yet tourism plummeted for almost two years beginning in Q2 2020. Data from Statista indicates that tourism revenue began to rebound in 2022, with a substantial increase from S$1.42 billion (£789.3 million/€947.5 million/$1 billion) in Q1 to S$4.57 billion in Q2. Total tourism revenue for the year reached approximately S$14 billion, as reported by the Singapore Tourism Bureau.
The relaxation of COVID-19 measures throughout Singapore peaked in February 2023, allowing unrestricted travel. By 2023, tourism receipts soared to the range of S$25 billion, with total visitor arrivals hitting 13.6 million.
On November 7, Resorts World Sentosa revealed a third-quarter net profit of S$79.4 million, significantly lower than the S$216.3 million reported in the same quarter of the previous year. The quarter’s revenue stood at S$562 million, reflecting a 19% decline year-on-year.
Genting Singapore attributed this downturn primarily to reduced VIP patronage. However, Maybank analyst Yin Shao Yang remains optimistic, suggesting that ongoing capital investments are poised to yield long-term benefits for the resort.
Resorts World Sentosa 2.0: A Vision for the Future
In a statement made following the GRA announcement, Genting’s company secretary Liew Lan Hing confirmed, “RWS continues to accelerate its transformation to refresh and rejuvenate existing offerings to enhance its destination appeal and visitor experiences.”
In a strategic move made in 2019, Resorts World Sentosa and its primary competitor, Marina Bay Sands (MBS), committed to a joint investment of S$9 billion in new tourism and MICE facilities. This investment was tied to an extension of their duopoly until 2030, underscoring the competitive landscape of the industry.
Recently, RWS commenced the construction of a S$6.8 billion “waterfront lifestyle complex,” which will feature two luxury hotels and a Minion-themed attraction at Universal Studios Singapore. Once completed, this expansion will increase the resort’s footprint by 50%, adding over 164,000 square meters of gross floor area.
“With its RWS 2.0 expansion plans underway,” Hing stated, “RWS is resolutely focused on maintaining its position as the preeminent lifestyle tourism destination in the region.”
This renewed commitment, alongside strategic investments, positions RWS to navigate the challenges ahead while redefining its role in the evolving landscape of the gambling and tourism industry in Singapore. The GRA’s scrutiny serves as a reminder of the industry’s need for continual adaptation and responsiveness to market dynamics.
