When Lawrence Wong became the Prime Minister of Singapore last month, one of the things that came up was casino resorts. Under the former PM Lee Hsien Loong’s leadership, the city-state opened two casino resorts in 2010. Under the new leadership, Singapore will start phase 2 of casino resort development.
The 2019 Ministry of Trade and Industry report shows that the two resorts contributed 1% to 2% of the yearly gross domestic product. As of 2019, the number of tourists has increased to 19.1 million, doubling in the past decade.
Investors will invest over $7.4 billion in the following round. Resorts World Sentosa is run by Genting Singapore, a Malaysian-owned corporation. In May, the firm said it would offer construction contracts for the additional hotels by September. According to pay per head casino experts, development is likely to commence by the end of the year. The well-liked tourist spot of Sentosa will be augmented with two hotels, bringing the total number of rooms to 700.
Another resort, Marina Bay Sands, will add a fourth hotel tower to its renowned ship-like rooftop terrace spanning three buildings. In April, parent firm Las Vegas Sands stated that construction will start in July 2025 and aim to finish in July 2029. The project will include a new arena with 15,000 seats and other facilities.
Casino Resort Development in Singapore
The casino sections of the two resorts will likewise undergo expansion, generating additional cash. A 2,000 sq. m. expansion for Marina Bay Sands and a 500 sq. m. expansion for Genting were approved. Although the Singaporean government gave the go-ahead for the expansion in 2019, the COVID-19 epidemic postponed its execution.
New inflation caused the investment cost for the expansion to skyrocket from the 2019 original estimate of SG$4.5 billion apiece. The amount of SG$6.8 billion invested by Genting rose by over 50%. Among other things, Sands cited inflation, increased material and labor prices, and other variables in a filing this year that it anticipates the overall project cost surpassing the sums it had previously mentioned significantly. Because of the growing importance of the city-state to their respective business portfolios, the two operators are continuing with their ambitious objectives.
After selling its Las Vegas casinos in 2021, Sands focused on the Asian market. Half of the company’s adjusted EBITDA (profits before interest, taxes, depreciation, and amortization) for the quarter ending in March came from Singapore. Gambling news reports show Singapore has become Genting’s most important market, surpassing Malaysia.
Singapore Casino Operators
The two operators have been struggling to break into new international markets for some time now. The Japanese government was moving to legalize casinos in 2020, and Sands planned to expand into the country. However, the company scrapped the idea because of the epidemic. In 2021, Yokohama City decided against hosting a casino resort. Also that year, Genting agreed to scrap its offer for Japan. There are no plans for casinos in Georgia soon.
The southern Malaysian state of Johor is located close to the Singaporean border, and in April, many media outlets reported on a possible integrated resort development there. Prime Minister Anwar Ibrahim, however, categorically rejected the accusation. Considering that Muslims constitute over 60% of the population, it is politically hazardous to open a new casino there because gambling is forbidden by Islamic law.
The Thai government is also considering allowing casinos, but the operators there are being very careful. At a shareholders’ meeting in April, Genting Chairman Lim Kok Thay was asked about interest in Thailand and other markets. He responded that the bidding process is very long and that the company’s choice not to move further with the Japan project was sound.
