Insight
COVID-19 UPDATE - ASIA Singapore
executive and management teams due to falling revenues amid the global pandemic. Employees were also encouraged to take either no-pay leave or annual leave.
Significant revenue was lost by the gambling industry as a result of the Circuit Breaker measures. While many businesses in other industries could and did move to the online environment to continue their operations, gambling operators in Singapore were not in a position to do so for various reasons:
1. Te licences and exemptions issued for online gambling excluded casino style games;
2. Tere were no sports events taking place (whether locally or overseas) on which bets could be offered;
3. Te percentage of punters who were purchasing lotteries and horse racing bets online were only a small fraction of the total number of punters, as most preferred to purchase lotteries and place bets at retail outlets. Given their low take-up rate and the pari-mutuel nature, it also did not make economic sense to continue to offer these games online.
Genting Singapore has since reported a Q2 2020 loss of S$163.3 million on the back of a 99 per cent decline in gaming revenue, and has also been forced to retrench approximately 2,000 employees as part of its cost cutting measures. Las Vegas Sands, operator of Marina Bay Sands, has similarly posted a 51 per cent drop in quarter-on-quarter revenue and is expected to engage in laying off measures due to the fallout from the pandemic, as the domestic gaming market alone is unsustainable
and there is no clear timeline as to when tourism can restart.
POST-COVID OUTLOOK
Te impact of Covid-19 will in all likelihood, continue to be felt by the gambling industry in Singapore for the foreseeable future. Travel restrictions and quarantine requirements for travellers are likely to continue given the situation around the world. Te loss of jobs and disposable income may also mean that the appetite for gambling may remain somewhat subdued until economic recovery is in sight. Covid-19 has precipitated and accelerated the need for structural change in the way many businesses are conducted. While the Government has long encouraged firms to use more digital technology in their business processes, Covid-19 has brought into sharp focus the need for businesses to put in place continuity plans through digitalisation.
Casino operators will need to come up with new ways of doing business, including introducing contactless gaming solutions designed to enhance staff and player safety on gaming floors, and mobile apps to allow access to funds which would eliminate the need to physically withdraw cash or redeem chips at the cage. Lottery operators may also have to try to migrate their customer base from physical retail outlets to online platforms.
Covid-19 has dealt the gambling industry with unfavourable cards, and how operators respond and adapt to its aftermath will determine how the dice will roll for them, and if they can adapt to and survive in the new business environment that emerges.
Genting Singapore has reported a Q2 2020 loss of S$163.3m on the back of a 99 per cent decline in revenue, and has also been forced to retrench approx. 2,000 employees as part of its cost cutting measures. Las Vegas Sands, operator of Marina Bay Sands, has similarly posted a 51 per cent drop in quarter-on-quarter revenue and is expected to engage in laying off measures due to the fallout from the pandemic, as the domestic gaming market alone is unsustainable.
Gambling GGR data 2019 Casino MBS Casino RWS
S$2.16bn S$1.61bn
Sports betting and lotteries S$602m Totalisator
S$162m NEWSWIRE / INTERACTIVE / MARKET DATA P53
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