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Maybank: S’pore money laundering case has no substantial effect on nation’s casinos

October 12, 2023 Singapore Casino & Hotel

According to Maybank, a high-profile money laundering case in Singapore that led to the seizure of nearly SG$2.8 billion (US$2.1 billion) in cash, cryptocurrencies, and other assets has not had a substantial effect on the nation’s casinos. Despite worries that VIPs could shun casinos, Genting Singapore, the owner of Resorts World Sentosa, experienced a 13% decline in its share price, according to Maybank’s analyst Samuel Yin Shao Yang.

According to Yin, Genting Singapore has kept up its VIP engagement, and the mainstream market has expanded. He remarked that the casino’s VIP involvement, whether as a result of its private jet program or celebrity events, did not noticeably diminish.

Genting Singapore shares continue to get a “BUY” recommendation from Maybank, which notes that the recent price decrease does not correspond to the company’s increased revenues, which are mostly due to the return of Chinese players.

Resorts World Sentosa’s gross gaming revenue (GGR) in the first half of 2023 exceeded 2019 levels even without a significant influx of Chinese tourists, and the GGR for slot machines is now rising upward as a result of new immigrants to Singapore. In comparison to the first half of 2023, Chinese play at the mass table GGR is also more significant.

According to Maybank’s projections, Genting Singapore’s VIP volume would remain stable at 87% of 2019 levels in 2023, while general market GGR will increase to 105% before reaching 120% in 2024.