Grant Govertsen, a Union Gaming Advisors analysts, told media that Singapore’s gaming revenue is down due to the Chinese movement to end corruption. For over a year now Beijing has limited travel and sought to stop junket operators that have known ties to triad organizations. Singapore government officials previously stated they did not want to work with these operators either, who seem to be all around Macau. However, the price is being paid in lost revenue due to upset VIP casino guests.

VIP gamblers coming from China account for half the revenue gained in both Macau and Singapore.

One factor impacting Singapore casino bottom lines is the fact that they have no real mechanism with which to collect debts from rolling chip players who don’t honor their losses. While the Macau junket operators have several tools for collecting debts in bad times, the Singapore casinos rely on good will and the judiciary as they are directly responsible for their actions. Some reports based on data from Bloomberg place  potential losses at Singapore casinos in the hundreds of millions if not billions for 2014. Macau may have seen as much as$12 billion in losses in 2014 due to bad debt spread among as many as 180 junket operators.

 

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