Fitch ratings: Singapore casino earnings outlook stable

The economic growth has reflected in the industry

Singapore.- The rating agency Fitch Ratings reported that the outlook for the local casino gaming sector is stable, regardless the slowing economic growth and fewer tourist arrivals.

“The anti-corruption crackdown in China, weaker Indonesian rupiah and softer regional economic growth have caused earnings to plateau,” stated the agency’s report. Moreover, it expects gross gaming revenue at both Marina Bay Sands (MBS) and Resorts World Sentosa (RWS) casinos. The revenues have fallen 10 percent to US$4.8 billion (S$6.7 billion) this year.

According to the agency, during the third quarter of 2015 MBS – which has a huge part of the market and is located near the financial district- increased its market share to 62 percent, higher numbers than the 49 percent it had in the first quarter of last year.

The report does not predict that the nation’s Government would grant any more licences to built new casinos, therefore the market will be divided between MBS and RWS.

Meanwhile, the Malaysia gaming sector has also a stable outlook by Fitch Ratings, as it is underpinned by the “market’s domestic and mass-market focus, which provides defensive qualities.”