SINGAPORE: Genting Singapore Plc is moving away from the VIP segment in casino gaming, according to a Bloomberg intelligence report, even as China's slowing economic growth dampens VIP credit quality.
Volume in Genting's VIP segment has slid 76% since Q1 in 2014. The mass market segment has contributed most of Genting's casino revenue since the final quarter of 2014, with turnover of US$250mil to US$300mil over the last several quarters.
However, according to the Bloomberg report, Singapore's VIP gaming business may stabilise through 2017 with steady demand from non-Chinese gamblers and the return of wealthy Mainland-Chinese visitors.
This may help to stem the revenue losses to Las Vegas Sands, Genting's only rival in Singapore's casino gaming scene. Genting's market share fell to 34% in the second quarter of this year from 54% in 2014.
Further rethinking its revenue mix, Genting is also planning to renovate its Resorts World Sentosa property to enhance its non-gaming offerings.