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13-01-2011, 08:38 AM
Jan 13, 2011
INTEGRATED RESORTS, ONE YEAR ON
The pull of casinos
Horse racing, ship-board casinos and club jackpot machines are losing out
By Jamie Ee Wen Wei
HAWKER Koh Yu Feng used to go to the Singapore Turf Club thrice a week to watch the races and to bet.
Not any more. Since Marina Bay Sands (MBS) opened its casino last year, the 62-year-old has switched horses for the gaming tables.
He said in Mandarin: 'The games there are more exciting. You can be more involved in the game; you look at your own cards.'
He is among the 100 punters polled by The Straits Times who link the change in their mode of gambling to the entry of the integrated resorts (IRs) in the gaming market last year. Since then, punters have been harking the siren call of Resorts World Sentosa and MBS.
Nearly a third of the 100 polled said they have forsaken horse racing, ship-board casinos and jackpot machines in clubs for a turn at the tables in the two IRs' casinos.
However, betting on 4-D seems to exert a hold still, though some say they have reduced their wagers to go to the casinos.
Official figures bear out the game-changing nature of the casinos: Parliament was told this week that the IRs generated $420 million in net revenue for the Government between April and November last year; in the meantime, revenue from activities such as lotteries, horse and sport betting and club- run jackpot machines has slowed.
The latest figures indicate that the Government collected $1.94 billion in betting taxes in the first 11 months of last year, 12 per cent more than the $1.73 billion collected for the whole of the year before.
The contribution to the $1.94 billion figure by clubs with jackpot machines dwindled.
In 2009, duty from the clubs was $334.1 million; in the first 11 months of last year, the figure could hit only $255.6 million.
The amount of duty from lotteries and horse and sport betting is unavailable.
Mr Carey Wong, an analyst with OCBC Investment Research, said the biggest change has been in the variety of gaming options, which has in turn opened up the market to a bigger audience.
Another change, seen at least anecdotally, has been in the switch from traditional gaming modes such as the lottery and horse racing to casino gaming, which offers instant gratification.
He explained: 'With traditional gaming, it will take some time before you know you win or lose. In a casino, the result is more instantaneous.'
Punters who were interviewed put the reasons for their switch down to convenience, a greater variety of games and a higher chance of a windfall.
Used-car dealer David Chee, 54, said he still puts $150 a week into 4-D, which he said can give a big return for a small bet. But still, he likes the 'different' and immediate thrill a casino gives, and goes to one five days a week.
For bartender Jason Lin, 26, the casinos - where he rolls $2,000 to $3,000 on each of his thrice- weekly visits - have taken the shine off the floating casinos he used to patronise once or twice a month.
'I don't go on cruise ships any more. It's too troublesome - it takes too long to get on board the ship,' he said.
Retiree A. T. Kuah, 64, who used to go to clubs thrice a week to work the jackpot machines, said he stopped doing that when the casinos opened:
'The machines at the casino are cheaper. You can play two-cent games; a game at the club costs at least 20 cents. The casino's games are also more interesting - and there's a higher chance of striking the jackpot,' he said.
Singapore Pools and the Singapore Turf Club declined to disclose their attendance and revenue figures, but stressed that, as Singapore's two purveyors of legalised betting, they pursue their objective of minimising illegal betting, and channel their surpluses to community causes.
They also pointed out that the casinos have opened up new business opportunities: Livewire, for example, Pools' one-stop gaming venue, has opened at both IRs, offering punters lottery, sport and horse-racing betting, as well as soccer matches and motor racing on high-definition projection screens.
Ship-board casinos and clubs with jackpot machines, being in direct competition with the IR casinos, have fallen on tough times.
Cruise companies declined to say how badly they have been hit, but junket operators who take gamblers on board these ships say their takings have fallen by 70 per cent.
And among the 100 clubs running jackpot machines, some have seen their revenues halved.
Takings from the machines at the Singapore Recreation Club fell 56 per cent, from about $12 million in the second half of 2009 to $5 million over the corresponding period last year.
The club has had to recall its subscription rebates and cut funding for its sport activities, said its general manager, Mr Abdul Rashid.
The National University of Singapore Society (NUSS), which has about 50 machines in its guild houses, has had fewer visitors and earned 30 per cent less.
The clubs say their coming under a different tax structure from the casinos has created an unequal playing field.
Mr Abdul Rashid said: 'To be honest, even the best marketing gurus cannot retain customers for clubs because we are operating at a huge disadvantage. It's like running with a three-legged horse.'
NUSS chief executive Tong Hsien-Hui said: 'Ultimately, only increased game-play will bring our takings back to pre-IR days.'
jamieee@sph.com.sg
Additional reporting by Ng Kai Ling, Jessica Lim and Huang Lijie
--------------------------------------------------------------------------------
CHEAPER, MORE INTERESTING
'The machines at the casino are cheaper. You can play two-cent games; a game at the club costs at least 20 cents. The casino's games are also more interesting - and there's a higher chance of striking the jackpot.'
Retiree A. T. Kuah, 64, who used to go to clubs three times a week to work the jackpot machines, said he stopped doing that when the casinos opened
IMMEDIATE THRILL
'With traditional gaming, it will take some time before you know if you win or lose. In a casino, the result is more instantaneous.'
Mr Carey Wong, an analyst with OCBC Investment Research, on the lure of instant gratification at casinos
INTEGRATED RESORTS, ONE YEAR ON
The pull of casinos
Horse racing, ship-board casinos and club jackpot machines are losing out
By Jamie Ee Wen Wei
HAWKER Koh Yu Feng used to go to the Singapore Turf Club thrice a week to watch the races and to bet.
Not any more. Since Marina Bay Sands (MBS) opened its casino last year, the 62-year-old has switched horses for the gaming tables.
He said in Mandarin: 'The games there are more exciting. You can be more involved in the game; you look at your own cards.'
He is among the 100 punters polled by The Straits Times who link the change in their mode of gambling to the entry of the integrated resorts (IRs) in the gaming market last year. Since then, punters have been harking the siren call of Resorts World Sentosa and MBS.
Nearly a third of the 100 polled said they have forsaken horse racing, ship-board casinos and jackpot machines in clubs for a turn at the tables in the two IRs' casinos.
However, betting on 4-D seems to exert a hold still, though some say they have reduced their wagers to go to the casinos.
Official figures bear out the game-changing nature of the casinos: Parliament was told this week that the IRs generated $420 million in net revenue for the Government between April and November last year; in the meantime, revenue from activities such as lotteries, horse and sport betting and club- run jackpot machines has slowed.
The latest figures indicate that the Government collected $1.94 billion in betting taxes in the first 11 months of last year, 12 per cent more than the $1.73 billion collected for the whole of the year before.
The contribution to the $1.94 billion figure by clubs with jackpot machines dwindled.
In 2009, duty from the clubs was $334.1 million; in the first 11 months of last year, the figure could hit only $255.6 million.
The amount of duty from lotteries and horse and sport betting is unavailable.
Mr Carey Wong, an analyst with OCBC Investment Research, said the biggest change has been in the variety of gaming options, which has in turn opened up the market to a bigger audience.
Another change, seen at least anecdotally, has been in the switch from traditional gaming modes such as the lottery and horse racing to casino gaming, which offers instant gratification.
He explained: 'With traditional gaming, it will take some time before you know you win or lose. In a casino, the result is more instantaneous.'
Punters who were interviewed put the reasons for their switch down to convenience, a greater variety of games and a higher chance of a windfall.
Used-car dealer David Chee, 54, said he still puts $150 a week into 4-D, which he said can give a big return for a small bet. But still, he likes the 'different' and immediate thrill a casino gives, and goes to one five days a week.
For bartender Jason Lin, 26, the casinos - where he rolls $2,000 to $3,000 on each of his thrice- weekly visits - have taken the shine off the floating casinos he used to patronise once or twice a month.
'I don't go on cruise ships any more. It's too troublesome - it takes too long to get on board the ship,' he said.
Retiree A. T. Kuah, 64, who used to go to clubs thrice a week to work the jackpot machines, said he stopped doing that when the casinos opened:
'The machines at the casino are cheaper. You can play two-cent games; a game at the club costs at least 20 cents. The casino's games are also more interesting - and there's a higher chance of striking the jackpot,' he said.
Singapore Pools and the Singapore Turf Club declined to disclose their attendance and revenue figures, but stressed that, as Singapore's two purveyors of legalised betting, they pursue their objective of minimising illegal betting, and channel their surpluses to community causes.
They also pointed out that the casinos have opened up new business opportunities: Livewire, for example, Pools' one-stop gaming venue, has opened at both IRs, offering punters lottery, sport and horse-racing betting, as well as soccer matches and motor racing on high-definition projection screens.
Ship-board casinos and clubs with jackpot machines, being in direct competition with the IR casinos, have fallen on tough times.
Cruise companies declined to say how badly they have been hit, but junket operators who take gamblers on board these ships say their takings have fallen by 70 per cent.
And among the 100 clubs running jackpot machines, some have seen their revenues halved.
Takings from the machines at the Singapore Recreation Club fell 56 per cent, from about $12 million in the second half of 2009 to $5 million over the corresponding period last year.
The club has had to recall its subscription rebates and cut funding for its sport activities, said its general manager, Mr Abdul Rashid.
The National University of Singapore Society (NUSS), which has about 50 machines in its guild houses, has had fewer visitors and earned 30 per cent less.
The clubs say their coming under a different tax structure from the casinos has created an unequal playing field.
Mr Abdul Rashid said: 'To be honest, even the best marketing gurus cannot retain customers for clubs because we are operating at a huge disadvantage. It's like running with a three-legged horse.'
NUSS chief executive Tong Hsien-Hui said: 'Ultimately, only increased game-play will bring our takings back to pre-IR days.'
jamieee@sph.com.sg
Additional reporting by Ng Kai Ling, Jessica Lim and Huang Lijie
--------------------------------------------------------------------------------
CHEAPER, MORE INTERESTING
'The machines at the casino are cheaper. You can play two-cent games; a game at the club costs at least 20 cents. The casino's games are also more interesting - and there's a higher chance of striking the jackpot.'
Retiree A. T. Kuah, 64, who used to go to clubs three times a week to work the jackpot machines, said he stopped doing that when the casinos opened
IMMEDIATE THRILL
'With traditional gaming, it will take some time before you know if you win or lose. In a casino, the result is more instantaneous.'
Mr Carey Wong, an analyst with OCBC Investment Research, on the lure of instant gratification at casinos
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