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Singapore GGR expected to grow by 16% y-o-y in 2024

January 31, 2024 Singapore Industry Updates

Singapore’s gross gaming revenue (GGR) is expected to reach around US$5.94 billion in 2024, an annual increase of 16%, according to a survey conducted by China International Capital Corporation (CICC) Hong Kong Securities Ltd.

The brokerage provided several explanations for this expected growth, including a projected 10% yearly increase in VIP GGR, a 17% annual increase in mass GGR, and a 23% increase in slot-machine-generated revenue.

Singapore’s total GGR in 2023 increased by 56% year over year to US$5.11 billion, according to a CICC analysis that was made public last week. This was 13% more than the pre-pandemic record for 2019.

CICC analysts cited several factors that would contribute to the expected VIP GGR performance in 2024, including a larger base of premium customers, an increase in the average spending power of Singapore’s growing high-net-worth individuals, and the possibility that Singapore’s two casino operators would relax their credit lending policies toward VIP patrons with excellent credit histories.

The mass GGR in Singapore has already recovered to 121% of the 2019 level in 2023 and is expected to expand even further in 2024, according to the CICC team. This is expected to be attributed to projected greater incoming passenger numbers from China and growing power consumption within the ASEAN region.

The brokerage emphasized how the 30-day visa-free entrance into China and Singapore for passport holders of each other’s countries, which was reinstated on February 9, may expedite Chinese visitors’ recovery after their outbound trips.

According to CICC’s fiscal year 2024 projections, Marina Bay Sands is expected to generate around US$2.15 billion in earnings before interest, taxes, depreciation, and amortization (EBITDA), a 20% rise from the previous year. It is anticipated that Resorts World Sentosa would have an annual EBITDA decline of around 14%, to $784 million, even with a 15% growth in GGR. The reason CICC thinks the note will include Resorts World Sentosa’s EBITDA was not made public.

Original story by: GGRAsia