Asia round-up: Bloomberg projects Singapore recovery, SkyCity, The Star & more

Home » Asia round-up: Bloomberg projects Singapore recovery, SkyCity, The Star & more

Bloomberg research examines gaming recoveries in various Asian markets.
Bloomberg highlighted the ongoing recovery of the Asian casino and resort market during its G2E Asia presentation, which yielded some surprising results.
Starting with the Philippines, Han Lee presented Bloomberg’s findings that, in 2020, the country posted a 39% increase over 2019; this increased to 47% in 2021; and has already reached 79% in H1 2022. The market has made a strong comeback.

Meanwhile, Singapore saw a 41% increase in 2020 compared to 2019, increasing by 4% to 45% in 2021. However, it was in H1 2022 that it saw a 68% increase over the previous year, with Han Lee stating that Bloomberg expected Singapore’s gaming market to reach pre-pandemic levels by 2024.

Macau, China’s gambling capital, reported a 21% recovery from 2019 in 2020, rising to 30% in 2021. However, it fell back to 18% in H1 2022, owing to the struggling Chinese economy and the impact of Covid lockdowns.

“China’s economy is struggling, and there are fewer wealthy people.” As a result, Macau’s casinos are focusing more on mass gaming markets with higher GGR.” Angela Han Lee, APAC Gaming and Hospitality Analyst at Bloomberg Intelligence

According to SkyCity FY22 loss of US$21 million

SkyCity has reported a NZ$33.6m (US$21m) loss for the fiscal year ended 30 June 2022, owing primarily to the 107-day closure of its flagship property in Auckland due to pandemic-related restrictions during H122.

The group’s Hamilton location was forced to close for 65 days, while its Queenstown location was forced to close for 22 days.

Revenue fell 33% year on year to NZ$639 million, according to the operator. Its Auckland property generated the most revenue, at NZ$330.6 million, followed by Hamilton and Queenstown, at NZ$56.2 million and NZ$10.2 million, respectively.

NZ Other and the group’s Adelaide property reported totals of NZ$3.8 million and AU$184.5 million (US$128.6 million), respectively.

“Macau’s casinos are attempting to shift their focus to the higher-margin mass gaming segment.” Angela Han Lee, APAC Gaming and Hospitality Analyst at Bloomberg Intelligence

According to the inquiry, despite the police ban, patrons continued to gamble at The Star.

During public hearings for the inquiry into The Star Entertainment Group’s Queensland casinos, it was revealed that “one of the top ten table players” at its Gold Coast venue had been barred from casinos in two other states by police.

The inquiry’s third day of public hearings, led by former Court of Appeal judge Robert Gotterson, heard more details about patrons, with one patron allegedly having alleged links to the Calabrian ‘Ndrangheta organised crime group. Person Two, the patron, was barred from gambling establishments in New South Wales and Victoria by police commissioners but was allowed to gamble in Queensland until “sometime later.”

According to the evidence presented at the hearing, the patron was barred from a Melbourne casino in December 2014 and a New South Wales venue in 2015, but was not given a group-wide license withdrawal until January 2021.

Macau’s tax revenue fell 50% year on year in July to $162 million.

Tax revenue from Macau’s six concession holders fell to MOP$1.31 billion (US$162 million) in July, down from MOP$1.35 billion collected by the region’s government in June. Tax revenue was also down 50% year on year in July.

The news comes as no surprise given Macau’s recent struggles with post-pandemic life, in which its borders are all but closed and incoming travel is still far below pre-pandemic levels.

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