Renewed Casino License Highlights Challenges Ahead for Resorts World Sentosa
Resorts World Sentosa (RWS), the crown jewel of Genting Singapore, is doubling down on its future with the launch of the ambitious RWS 2.0 expansion plan. However, the recent renewal of its casino license for a shorter two-year term has raised eyebrows, underscoring concerns about its tourism performance and financial stability.
The integrated resort’s S$6.8 billion expansion promises new hotels, retail, dining, and a cutting-edge mountain trail. Yet, the Gambling Regulatory Authority (GRA) has flagged RWS’ tourism efforts as unsatisfactory, mandating substantial improvements before the next review in 2026.
The stakes have never been higher for Genting Singapore, which must overcome pandemic-era setbacks, rising costs, and declining revenue to secure its standing as a top-tier lifestyle destination.
A Rough Streak
Genting Singapore has faced a turbulent year. Reduced casino wagers, a stubbornly low win rate, and renovation disruptions have dented its bottom line. In Q3 2024, earnings plummeted by 63.3% year-on-year to S$79.4 million, while revenue fell 18.5%.
Despite a 2023 earnings rebound of 79.8% to S$611.6 million, figures remain below pre-pandemic levels. Genting’s shares have slumped 23.5% year-to-date, lagging behind Singapore’s Straits Times Index, which rose 14.4%.
Hope on the Horizon?
Some analysts believe Genting Singapore’s fortunes could change as soon as 2025. A projected normalization of casino win rates and new attractions under the RWS 2.0 umbrella are expected to boost revenue. DBS Group Research predicts earnings of S$741 million on revenue of S$2.74 billion in 2025, supported by an expanded non-gaming portfolio.
Rising dividends and an estimated yield of 5.8% for 2025 also position Genting Singapore as a potentially rewarding investment.
The Risks Ahead
But hurdles remain. International tourism recovery has been inconsistent, and the RWS 2.0 expansion has seen costs balloon from S$4.5 billion to S$6.8 billion, driven by soaring labor and material prices. Execution delays or persistent win rate woes could further strain Genting’s comeback plans.
A Make-or-Break Year
With its stock under pressure and scrutiny mounting, Genting Singapore must execute flawlessly to regain investor confidence. The question remains: Will 2025 be the jackpot year that reshapes its fortunes, or will the odds continue to stack against one of Singapore’s flagship integrated resorts?
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