The arrest of Suncity CEO Alvin Chau has put $19.3bn in VIP GGR at risk and other jurisdictions around Asia are likely to target Singapore’s premium mass players to help plug the gap.
Maybank said it sees competitive pressures coming from Macau and the Philippines, but competition from Cambodia is likely to be the most intense.
“These IRs have to fill the large gap left by the formerly junkets-driven VIP market,” the firm wrote. “As it is, the Macanese IRs are already duking it out to attract Chinese premium mass gamblers and will target south-east Asian premium mass gamblers when borders reopen.
“We have heard the same from the Philippine and Cambodian IRs. Thus, there is a risk that RWS’ mass market may not recover to 100 per cent of pre-Covid-19 levels in the long run as we expect.”
Singapore’s two IRs generated total GGR of S$6.2bn (US$4.5bn) in 2019.
Source: Asia Gaming Brief
