A rendered image of Genting Singapore’s planned new hotel in Sentosa
The casino industry is closely watching developments in Singapore as the city-state begins the second phase of its casino resort expansion.
The resorts’ development is on the verge of commencing its second phase, as both developments are preparing for substantial expansions, which hold a collective investment value exceeding USD7.5 billion.
Back in May, Genting Singapore, which operates Resorts World Sentosa, announced that it wil tender construction contracts for the new hotels by September, as reported by Nikkei Asia.
Parent company of Marina Bay Sands, Las Vegas Sands, meanwhile, announced in April that its construction will begin July 2025, with a new 15,000-seat arena and other facilities expected to be completed in July 2029.
Marina Bay Sands has been a financial powerhouse since its 2010 opening, ranking among LVS’s most profitable properties.
The resort, Marina Bay Sands – famous for its ship-like rooftop garden spanning three skyscrapers – will add a fourth hotel tower. The expansion in Singapore will include a fourth hotel tower with 1,000 luxury suites, a 15,000-seat entertainment arena, and additional MICE (Meetings, Incentives, Conferences and Exhibitions) space, signaling the region’s growing importance as a destination for integrated resort development.
The expansion plans in Singapore were approved by the government in 2019; however, the Covid-19 pandemic caused a delay in their implementation.
The investment cost for the expansion rose significantly from the initial amount stated in 2019 – SGD4.5 billion each – due to recent inflation. Genting’s investment surged by approximately 50% to SGD6.8 billion.
Sands also mentioned in a filing this year that they anticipate the total project cost to surpass the previously referenced amounts, attributing it to inflation, higher material and labor costs, and other factors.
Despite pricey investments, both operators are proceeding with their ambitious plans as Singapore becomes increasingly important in their business portfolios. In the first quarter of the year, Singapore accounted for nearly 50% of the Sands’ adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization). Genting’s Singapore operations have outperformed those in its home country, Malaysia.
Meanwhile, Singapore’s measured approach to gaming, focusing on social responsibility, presents both opportunities and challenges for Macau’s gaming giants. While the expansion opens a new market for growth and diversification, it also intensifies regional competition, making it crucial for Macau’s gaming industry to adapt and innovate to stay ahead.
Experts have also warned that Macau is experiencing competitive pressure as Thailand, Japan, the UAE, and other countries ride the wave of gaming legalization.
In 2023, Macau’s gaming revenue reached MOP180 billion, and the Macau government expects to generate around MOP83.61 billion in gaming tax revenue by the end of 2024. Nadia Shaw
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