THE authorities have renewed the casino licence of Resorts World Sentosa (RWS), an integrated resort operated by Genting Singapore, for another two years, beginning Feb 6 next year.
Renewal of Casino Licence
In a bourse filing on Monday (Nov 18), the casino operator said that the renewal was granted after RWS was deemed to be suitable to manage and operate the casino.
The authorities had also taken into consideration RWS’ ability to develop, maintain and promote the integrated resort as a “compelling tourist destination” based on its performance from 2021 to 2023, just after the Covid-19 pandemic.
Challenges Faced by RWS
Genting Singapore said that the Republic’s tourism industry, including RWS, had faced “very significant challenges” during this period.
It added that RWS will continue to refresh and rejuvenate its offerings to deepen its appeal as a destination.
Major Expansion Plans
Last Friday, RWS announced plans to complete a major expansion by 2030, in its bid to attract more visitors to the integrated resort. The expansion includes construction of a waterfront promenade, a four-storey retail, entertainment and dining podium, and two new luxury hotels.
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Business Performance
The major expansion comes as Genting Singapore works to boost the appeal of RWS, amid the slower recovery of international visitor arrivals to Singapore, increased competition and falling revenue from its gaming business.
In its most recent third-quarter business update, Genting Singapore posted a net profit of S$79.4 million for the quarter, down 63 per cent from S$216.3 million in the year-ago period.
Revenue for the period fell 19 per cent to S$561.9 million. Gaming revenue dropped 28 per cent on year to S$330 million, while non-gaming revenue ticked up 1 per cent to S$231.8 million.
Shares of Genting Singapore closed flat at S$0.775 on Monday, before the announcement.
Conclusion
The renewal of the casino licence for Resorts World Sentosa is a positive development for the integrated resort, which has faced significant challenges in recent years. The major expansion plans announced by RWS aim to attract more visitors and boost its appeal as a destination. However, the company’s business performance has been impacted by the slower recovery of international visitor arrivals and increased competition.
FAQs
Q: When does the renewed casino licence take effect?
A: The renewed casino licence takes effect on Feb 6 next year.
Q: What is the major expansion plan announced by RWS?
A: The expansion plan includes the construction of a waterfront promenade, a four-storey retail, entertainment and dining podium, and two new luxury hotels.
Q: What is the impact of the slower recovery of international visitor arrivals on RWS?
A: The slower recovery of international visitor arrivals has led to a decline in revenue for RWS.
Q: What is the business performance of Genting Singapore?
A: Genting Singapore posted a net profit of S$79.4 million for the quarter, down 63 per cent from S$216.3 million in the year-ago period.
