Junket approval to alleviate RWS' bad debts: CIMB

CIMB says Resorts World Sentosa is off to a good start as competitor MBS has yet to endorse any junket operators.

Following Singapore’s Casino Regulatory Authority's go-ahead to two Malaysian junket promoters endorsed by RWS, CIMB says the news is a positive surprise and came earlier than expected.

Here's more from CIMB:

While the approval of the two Malaysian junkets is unlikely to significantly boost RWS’s VIP operations, it is undoubtedly a good start and a likely prelude to more approvals. 12 other applicants were rejected, but the CRA is currently evaluating more applications.

This news came at an opportune time (i.e. when casino operators are still cautious on their direct lending stance) and should help address the twin concerns of RWS’s 1) bad debt provisions, and 2) declining VIP volumes. Since MBS has yet to endorse any junket operators, RWS has a good headstart. These two Malaysian junkets are only allowed to operate in RWS currently.