A BUSY RESORTS WORLD SENTOSA

We’ve got some takeaways from Singapore. The good:  busy and decent table win, the less good: expensive busing may be playing a role.

Resorts World Sentosa (RWS) has been open for more than a month.  The initial read we got from our consultant this weekend was positive with a caveat.  Mass revenue per table per day looks good at between US$3,600 and US$5,300, which compares favorably to the Mass average in Macau at US$3,600.  While this should not be too surprising since RWS is operating a monopoly, a busy casino cannot be considered a bad thing.  The only thing tempering that enthusiasm is that we are hearing that the property is operating an aggressive busing from Malaysia – no doubt impacting its Highlands property - which is expensive and highly promotional.

Here are some observations: 

RWS Details:

  • Opened 2/14/10
  • 380 Mass tables, 120 VIP tables, 1,100 slots (only 850 appear operational)
  • Budget of US$5bn, up from US$3.4bn
  • Locals have to pay entry fee of S$100 per day or S$2,000 per annum
  • Foreigners pay no fee

Customer Base:

  • Visitor traffic predominately Malaysian
  • Tapping into current Highlands customer base in Malaysia
  • Aggressive and expensive busing from Malaysia
  • Local play builds beginning late afternoon

Operations:

  • Roulette (20% of Mass floor) much bigger than Las Vegas or Macau
  • Baccarat only 23% of Mass floor
  • Slots more popular than Macau
  • Peak time for Mass floor is late afternoon
  • Only 250 of the 380 Mass tables are open at peak – lack of staff may be the problem
  • Due to inexperience, game speeds are very slow
  • Minimum bets are averaging around S$50
  • Win per Mass table estimated to be S$5,000-7,500 per day