Singapore's gaming revenue may rise 25%

The burgeoning Asian middle-class is ringing in growth for the casino industry in Asia.

Some experts are forecasting Singapore's gaming revenue to increase 25% this year, faster than 20 % growth expected for Macau.

Moreover, while analysts are expecting slower growth from the casinos in the US, it seems the chips are in for Asia; following the opening up of the casino industry in Singapore, all eyes are on markets such as Vietnam, Japan and Taiwan.

"But all in all, I think the pie is large enough to be shared by many players in the gaming industry, because essentially, I think this has to do with the emergence of Asia - with rising wealth and the growing middle income class. So I think the potential for this industry in the region is tremendous," Irvin Seah, Economist and Vice President at DBS Group Research, said.

Michael Paladino, gaming analyst at Fitch Ratings, said: "I do not know if (Singapore) it will be outpacing Macau any time soon, but it could outpace the Las Vegas strip in a couple of years. When Macau first opened up in the early part of last decade, most people predicted that it would overtake the strip in a few years. I do not think there were many people predicting that it would be four times the size in a five-year period.”

"Singapore has already ramped up to about a US$4 billion annually; it is probably going to go to about US$5 billion in the next year or two. Las Vegas strip, in terms of gaming revenue, only generated US$6 billion last year, so in terms of the growth trajectory, you could see Singapore overtake in terms of gaming revenue."

On the other hand, experts point out that 60 % of casino revenues in Las Vegas come from non-gaming activities, and in that area, Singapore has some way to go.