Genting's Resorts World Sentosa predicted to suffer 8-10% drop in gaming revenue

Blame it on waning local patronage.

According to UOB Kay Hian, as a strong set of results is already expected, the firm remains cautious on GENS’ growth ahead as the lucrative mass-market business remains subdued going forward. 

It also added that it forecasts RWS’ mass-market GGR to contract 8-10% in 2013, after declining by an estimated 2.2% in 2012 to S$1.7b, based on the continuing trend of a flattish to declining local patronage since mid-12 when the government started to propose curbs and restrictions on financially vulnerable local gamers.

"We reckon local gamers still contributed over one-third of mass-market GGR in 2012. Nevertheless, we expect GENS to see a continued recovery in its RCV by 5-10% yoy in 2013 after a 5.7% yoy decline in 2012 as the company ramps up marketing efforts," UOB Kay Hian said.