Singapore casinos have increased the levy on casino entry introduced this year to blame for sinking revenue. Both Las Vegas Sands operated Marina Bay Sands and Genting Group’s Resort World Sentosa are witnessing diminishing footfall after the mandatory casino levy was increased earlier this year.
However, according to Maybank Investment Bank, it is only going to get worse for casinos.
According to a report by Inside Asian Gaming, in a research note published on Thursday, Maybank analyst Samuel Yin Shao Yang pointed to April’s 50% hike in casino entry levies as having impacted mass gaming revenues at Marina Bay Sands in the recent quarter, with mass GGR down 4.5% year-on-year to US$255.6 million.
“We gather that the 50% hike in casino entry levy for Singaporean citizens and permanent residents (SCPR)… continues to weigh on mass-market GGR,” Yin said.
“As more SCPRs’ SG$2,000 annual passes expire, those SCPRs will have to pay a much higher SG$3,000 if they wish to renew their annual passes. With such a steep hike, we gather that some SCPRs will not renew their annual passes when they expire, exerting downside pressure on mass-market GGR.”
Earlier in the year in April, the Singapore government made it expensive for locals to enter gambling facilities. The levy was increased by 50 percent. While for a single-day visit the levy was increased from SGD 100 to SGD 150, the annual levy was increased from SGD 2,000 to SGD 3,000.