Resorts World Sentosa is concerned that China’s clampdown on cross-border gambling may impact its operations.
Singapore.- The parent company of Resorts World Sentosa (RWS) in Singapore is concerned that China’s crackdown on cross-border gambling may have an impact on business.
China’s president Xi Jinping has ordered authorities to prevent citizens from travelling overseas to gamble, in a bid to keep capital circulating in China.
The People’s Republic is also threatening action against foreigners who market and organise international gambling trips from China, with severe penalties of up to 10 years in prison.
After releasing disappointing 2020 financial results, Genting Singapore has issued new guidance warning of the potential impact.
Maybank analyst, Yin Shao Yang, commented: “RWS was allowed to increase operating capacity from 50 percent to 65 percent from December 28, 2020. But Genting Singapore still does not expect its GGR to improve markedly [due to the] lack of foreign gamblers.
“Furthermore, Genting Singapore also does not expect the VIP market to recover to pre-Covid-19 levels due to China cracking down on anyone enticing mainland Chinese to gamble overseas.”