Genting Singapore to prioritise mass market

VIP high rollers won’t be Genting Singapore’s primary target anymore as the company aims to attract more mass market players.

Singapore.- Genting Singapore PLC has seen its VIP credit quality deteriorated recently and is aiming to shift its business from being reliant on VIP high rollers to more mass market targetted.

As CalvinAyre quoted, Bloomberg Intelligence has recently reported that the company has decided to change its operation as the number of Chinese gamblers in its facilities has dimished due to Beijing’s crackdown on corruption and capital outflows. Said reduction has driven Genting’s VIP segment to drop 76 percent since Q1 2014 and opposes to its mass market segment’s growth, which provides most of the company’s casino revenue (US$250-US$300 million).

According to analysts, the mass market hasn’t been affected by Chinese issues as its primarily driven by travelers from other Southeast Asian countries. Its only problem has been the weakening of regional currencies, that make more expensive to visit Singapore.

“No details have been revealed but management shared that it is currently in talks with government on the matter and hopeful to provide more information by end-2017,” UOB Kay Hian analyst Vincent Khoo said.