Singapore’s two integrated resorts, Marina Bay Sands (MBS) and Resorts World Sentosa (RWS), approach their casino license renewal, and a stark contrast emerges in their trajectories.
Marina Bay Sands (pictured above) is doubling down on its commitment to luxury and entertainment. The resort is seeking a record S$12 billion (almost USD 9 billion) loan to fund a massive expansion, including a new 570-room hotel, a 15,000-seat arena, and a conference space about the size of two football fields at its location next to the financial district. This ambitious project, slated for completion in 2031, reflects the casino’s strong performance and confidence in Singapore’s long-term growth prospects.
In contrast, Resorts World Sentosa has received a setback from the Gambling Regulatory Authority. The regulator has shortened the casino’s license renewal period from three to two years, citing “unsatisfactory” performance in attracting tourists. RWS also has big expansion plans, such as a USD 5 billion waterfront expansion that will add 700 new hotel rooms, a new Minions-themed area at its Universal Studios theme park, and an aquarium expansion. The shortened license period casts a shadow over its future.
Resort World Sentosa, Singapore.
A changing landscape
The pandemic has undoubtedly impacted both resorts. However, underlying factors such as economic trends, evolving tourism preferences, and increased competition from emerging gaming destinations are also at play.
MBS, strategically located in the heart of Singapore’s financial district, has benefited from the growth of the corporate sector and the demand for high-end business and leisure facilities. RWS, situated on Sentosa Island, relies heavily on leisure tourism and has faced challenges in attracting international visitors, especially in the post-pandemic era. Last year, Sentosa received 15 million visitors, well below the pre-Covid level of around 19 million.
The government has been investing in new attractions and developments in Sentosa. However, for many, it’s still a place to visit only at the weekend, with some complaints of transport issues in the evenings, including long waits and high prices for taxis to get back to the city.
The global gaming stage
As Singapore’s casino industry evolves, it must contend with rising competition from regional rivals. Japan, with its strong tourism market and ambitious casino development plans, is poised to become a major player. Thailand, too, is considering legalising casinos, which could further disrupt the regional landscape. The United Arab Emirates is also building its first casino.
Japan, a popular tourist destination, is set to open its first casino resort in 2030, and Thailand is considering legalising casinos. The UAE’s recent issuance of a gaming license further intensifies the competitive pressure.
In the short term, the focus will be on MBS’s upcoming license renewal before the current one expires in April. The outcome of this process will have significant implications for the future of Singapore’s gaming industry and its position in the global gaming market.
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