Genting Singapore has received the Singapore gambling regulator's nod to operate junkets at Resorts World Singapore (RWS).
The Casino Regulatory Authority (CRA) gave its approval to two Malaysian junket promoters Huang Yu Kiung and Low Chong Aun to run junkets aimed at foreign high rollers. The promoters, who were endorsed by RWS, can start organising junkets immediately. The licence is valid for one year and has to be renewed annually.
Officially referred to as “international market agents,” the promoters can target the international market but not Singaporeans or permanent residents. Twelve applicants were rejected, although the CRA said it was evaluating more applications.
This gives RWS a headstart over its competitor, Marina Bay Sands (MBS), which has yet to endorse any junket operators. The move would help address twin concerns at RWS bad debt problems and declining VIP arrivals.
Junket approvals could open up a new stream of VIP players for both RWS and MBS, giving the Singapore VIP gaming market the much-needed ammo to grow.
The junkets would be positive for RWS in terms of its credit risk. Now Genting doesn't have to extend so much credit to the high rollers because the junket operators typically offer their own credit.
RWS is operated by Genting Singapore , which is 47.2%-owned by Genting.
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