Casino Revenue Potential Study Model By Ramachandar Siva

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25 april 2010

Casino Reve nue Potenti al Stu dy – Re sor ts Worl d Sento sa
25.04. 2010

CONTENT

Section Page
1. P urp o se o f St ud y 2
2. Exec utive S umma r y 3
3. Sco pe of St ud y 5
3.1 Overview of RWS casino operations 5
3.2 RWS casino visitor pattern 5
3.3 RWS casino revenue projection 5
3.4 RWS casino table games performance 6
4. Metho do lo g y 7
4.1 Estimated Theoretical win model 7
4.2 Setting House Edge % for the study 8
4.3 The Statistical approach 11
i. Casino Operations survey 12
ii. Casino visitor arrival survey 13
iii. Table Games live action survey 13
5. Fi ndi ngs 15
5.1 About RWS Casino Operations 15
5.1.1 General overview of casino 15
5.1.2 Operating hours and pattern 16
5.1.3 Types of Games 18
5.1.4 Physical table count 19
5.1.5 Electronic Gaming Tables & Slot Machines 20
5.1.6 RWS Common Room – operational capacity April 2010 22
5.2 RWS Casino visitor arrival study 24
5.2.1 Casino visitor arrival projection 24
5.2.2 Daily pattern of visitor arrival 26
5.3 RWS casino revenue projection – common gaming 27
5.3.1 Monthly and Annualised statistical theoretical win 27
5.3.2 Revenue contribution by game sector 27
5.3.3 Considerations for projection of annualized casino revenue 28
5.4 RWS Game Performance Study 30
5.4.1 Game efficiency 30
5.4.2 Game Handle ( Turnover ) 32
5.4.3 Game margins and profitability 34
6. Co ncl usi on and Dis cussi o n 36
6.1 RWS Casino Operations Review 36
6.2 Casino Visitors 37
6.3 Revenue Performance 38
6.4 Study Limitations 41

7. S ug gesti o ns t o e nhanc e the TW Projecti o n M od el 42
End Notes 45

Appendix 1a Gaming Capacity – Game Distribution
Appendix 1b Gaming Capacity – Table Spread
Appendix 2 Casino Visitor Analysis
Appendix 3a RWS Statistical Revenue Projection
Appendix 3b RWS Revenue Projection 2010 & 2Q10-1Q11
Appendix 4 RWS Key Revenue Performance Indicators
Appendix 5 Visitor Survey Plan
Appendix 6 Table games live action survey plan

ICG School of Casino & Hospitality Management, 200, Turf Club Road #02-03/09, Singapore 287994 1
tel: (65) 64671890 fax: (65) 64698801 email: corporate@icgtraining.com www.icgtraining.com

25.04. 2010

1. Purpose of Study

Resorts World Sentosa casino, (RWS), opened on the 14th February 2010. In the two months
since, the success and revenue potential of the casino has been open to speculations, as
gaming statistics are not publicly available yet.

The purpose of this study is to project the estimated revenue potential of casino gaming
operations at Resorts World Sentosa (RWS) for the first year of operations. A survey of the
casino operations is undertaken to gather information required to estimate the key performance
indicators, which will be used to tabulate and provide revenue projections. This will form the
basis to evaluate the casino’s revenue potential. This paper includes a preliminary study to
define operational capacity and visitor arrivals to provide a broader perspective of the RWS
casino operations at its infancy.


25.04. 2010

2. Executive Summary

The Casino Revenue Potential study of Resorts World Sentosa casino was completed in the month of April
2010, approximately 2 months after its opening. Floor survey and live games data collection was
th th
conducted between the 5 and 10 of April. This study is restricted to RWS’s mass gaming operations,
where public access allowed the survey to be conducted. Findings and projections of revenue are solely
reflecting the common gaming capacity of RWS. The following are summary of findings.

1. Overview of RWS casino

The RWS casino offers approximately 365 gaming tables and 1200 gaming machines. The varieties of
games offered are similar to Genting. All the table games and electronic table games in operation are
well received. Study confirms that RWS is running at less than 50% of its full operational capacity in
common gaming division. The lowest table opening count was observed at 69 tables and 197 at the
highest. Observations suggest that demand exceeds supply of gaming at RWS during peak and high-
peak periods. In general, the main games of Baccarat and Roulette are affected by operating hours
offered causing overcrowding and heavy chip action. Improvements to match supply to demand will
be a key concern for RWS over the next 3 months. Overall the casino operations and product is
deemed exceptional and world-class in presentation.

2. Casino Visitors

The study shows that the casino patronage is above average. Visitor rate is estimated at 22,000 for a
typical weekday and 42,000 on Saturday; which translate to approximately 780,000 per month and
10.1 million per annum of visitors. (Factoring of repeat entry of visitor (on survey day) probabilities for a
degree of correction in our analysis provides an estimate of 480,000 per month and 6.2 million per
annum.) These estimates are conservative, as it does not take into account growth of visitor arrivals
and positive fluctuations due to holiday periods. Apart from consideration of an adjustment expected
when Marina Bay Sands opens in late April 2010, it can be concluded that to date the RWS casino
operations in Singapore is successful in attracting both local (45% overall) and foreigners (55% overall).

3. Casino Revenue Projection

The statistical theoretical win projection model, which uses the estimate of handle, offers the best
approximation of revenue potential for an active casino. The propriety method developed for this study
is comprehensive as it takes into consideration a variety of operating factors that impact the handle.
The study concludes that the casino capable of generating a daily win of SGD $ 3 million and with an
annualized revenue potential of SGD $ 1.1 billion for the mass gaming division. Estimate is based on
statistical outcomes of the study for the month of April 2010. The projection does not take into
consideration future positive or negative factors that would impact the revenue of the casino.


25.04. 2010

4. Game Performance

The study of RWS’s game operations performance provides an insight to the efficiency and related
impact on its present revenue generating capacity. This is an extremely rare independent study of the
nuts and bolts of an active casino where the technical capabilities are examined. The propriety
methodology designed for this study focuses on establishing the statistical values of table games Key
Revenue-Performance Indicators that are crucial game efficiency descriptors.

The findings conclude that RWS casino is at approximately 40-45% of technical efficiency. The key
area of concern is the game pace of major games where overall the operations if at best about 40% of
commonly acceptable Games per Hour expectation. The main issue would be inadequate tables to
cater for players during peak and high peak periods. The game pace suffers due to overcrowding
which increases chip action, further compounded by dealers lacking experience. Other factors that
would require fine-tuning are the table limits, the offers of side bets and game procedures. The
revenue of Baccarat, Roulette and Tai Sai are the most affected by game pace. These games receive
above high-level wagers (Baccarat - $3800 per game and Roulette $2500 per game) thus the game
pace is crucial to increase the handle per hour by increasing the game pace. Tai Sai (wager per game
$3000) and 3 Pictures (wager per game $2100) are the 2 other games affected by the low win
extracting capability caused by low game pace.

Overall, it can be concluded that the RWS casino operation has pent-up potential in terms technical
revenue generating capabilities. Large increments in game efficiency are expected in the short-term as
the casino management fine tunes its operations. There is confidence to suggest that revenue
projections have an upside merely due to significant impact from game operation improvements.

This report provides detailed analysis and discussions on game performance of RWS casino.


25.04. 2010

3. Scope of Study

The following describes the scope of the study and report which is in 4 parts:

3.1 RW S casi no o pe ratio n patte r n st ud y.
To define the operational parameters of the RWS casino.
Design and deploy a survey.
Organise information from the survey to present the following:

i. Description for the common gaming facility - floor separation and allocation of
gaming tables and machines by area.
ii. Casino operations demographic – statistics of game types and available tables
and gaming machines.
iii. Define the current operations capacity against the possible full operating capacity
in terms of total operation hours of gaming offered per day by game type.
iv. Define tables operating pattern employed by the casino to match fluctuating
demand throughout an operational day of 24 hours differentiated by weekday and
weekend pattern.

3.2 RW S casi no visit or patter n stud y.

To estimate daily visitor volume for weekday and weekend.
Design and deploy a survey, data collection and analysis method.
To analyse data, tabulate and present estimates of:
i. Daily visitor arrival pattern for weekday and weekend.
ii. The variance between local and international visitors.
iii. Projection of weekly, monthly and annual visitors to the casino.

3.3 RW S casi no r eve nue p r ojecti on.

To project the common gaming revenue generating capability of the RWS casino in
terms of theoretical win derived from estimated handle.
Design a statistical model to project RWS casino’s common gaming revenue.
Design and deploy a sampling and data collection method. Data collected from live
gaming activity include game pace (hands/hour), total wager per game, number of
players per game and table limits.


25.04. 2010

To analyse data, estimate the key variables and tabulate the following:
i. Total Operating hours for each periods (low-peak) of operation for each game type
by weekday, Friday, Saturday and Sunday.
ii. Order the data collected for games per hour, wager per game and players per
game by game type and calculate the average values for 6 low-peak periods within
24 hours for weekday, Friday, Saturday and Sunday.
iii. Use the averages for the variables of operating hours, hands per hour and wager
per game to tabulate the Theoretical Win for each game type for 6 periods of each
varying operational pattern days defined as Weekdays, Friday, Saturday and
Sunday.
iv. Complete projection of the casino’s common gaming total revenue capacity
(weekly, monthly and yearly) based on theoretical wins tabulated of each period of
the operational pattern days.

3.4 RW S casi no table game s pe rf orm anc e st ud y.

Provide a basis for Comparative Performance Analysis of table games
Isolate tabulated values into averages of all periods and days (weekly) and define the
following:
i. Games per hour comparison by game type – to describe efficiency.
ii. Average Wager (Handle) per hour by game type – to describe sales volume.
iii. Average Wager per player per game by game type – to describe purchasing power
or gambling intensity.
iv. Theoretical win per game by game type – to describe comparative revenue margin
between games.
v. Theoretical win per hour by game type – to describe profitability between games.


25.04. 2010

4. Methodology

4.1 E stimated T he oretica l Wi n M odel

The usual methods to project potential casino revenue are based on the application of detailed
“gravity models” that relate actual (and, for proposed facilities, potential) gaming-facility revenues
to the demographics of the areas surrounding them. These models are based upon a well-
established principle of economics known as “Reilly’s Law,” which describes how consumers
tend to visit alternative retail centers (roughly) in direction proportion to the size of each center
(such as casino square footage, or number of slot machines) and inversely proportional to the
square of the distance to each -- hence the parallel with Newton’s law of gravitation. This
method is usually used for studies undertaken before a decision to open the casino is made or if
there are plans to redevelop or add casinos to a locality.

In the case of an active casino, this study employs an unusual method of estimating the revenue
potential of the casino. A statistical model is designed to estimate the weekly handle (total
wagers) of the major table games. The total handle is a variable in the tabulation of Theoretical
Win. The following formula forms the basis of the statistical model used in this study:

Theoretical Win = Handle x House Edge %
where,
Handle = Average Wager per Game x Average Games/Hour x Total Operating Hour

Thus the statistical model requires measurement of the variables at live table games. Survey is
conducted on randomly selected live table games and data is collected for wager per game and
games per hour. Total tables opened throughout the day are tracked and recorded to tabulate
the Total Operating Hours for each game studied.
The table games surveyed are:

• Roulette ( RL)
• Baccarat (non-commission and commission) (BB or MB )
• Blackjack and Pontoon (not differentiated) (BJ and PO)
• Progressive Caribbean Stud Poker (CSP)
• Progressive Texas Hold ‘Em (TX)
• 3 Card Poker (CP)
• 3 Pictures (TP)
• Tai Sai (TS)


25.04. 2010

4.2 Setti ng t he Ho use Ed ge % f or purp os e of st ud y

Ho use Ed ge (HE%) is the mathematical advantage the casino has over players for each of its
games. Casino games are based on prediction of the outcome of a random event and wagering
on the success of the predicted outcome. Based on the success probability of an outcome, the
‘True Odds’ are defined. By setting the ‘Payout Odds’ lower than the ‘True Odds’, the casino
creates for itself a mathematical advantage for all the possible outcomes in a game of chance.

House Edge is a statistic value that has a corresponding parameter in all casino games. The
calculation and the stating of HE% for games can be as straight forward (as in Roulette) or
extremely complicated (as in Texas Hold ‘Em Poker). The variety of game rules and side bets
offered by casinos further create complications in establishing the Empirical House Edge (EHE).
In certain games with multiple betting options, the probabilities differ for each bet type thus a
game shall have varying house edge percentages. In such cases the industry uses Blended
House Edge (BHE) figures or settles for the house edge value of the most common or probable
wager or wagers, i.e. in Tai Sai, the commonly accepted practice is to use the HE% of Big or
Small bets which attract the bulk of wagers, as the various other bet options attract far lesser
bet volume relatively.

For the purpose of this study the House Edge % values described in Tabl e 4. 1 are used to
tabulate the theoretical win.


25.04. 2010

Table 4. 1: H o us e Ed ge % sta nda rds fo r RW S ga mes i n the st ud y.

Game Ho use Ed ge % Descri ptio n
Roulette 2.703% Empirical value for single zero roulette.

Baccarat 1.265% Blended house edge, based on resolved decisions
(Tie not included) for game of eight-decks.

Banker +1.17%
Player +1.36%
“These are known as the relative win rates”
Aggreg ate Ho use E dge = (1 .17+1 .36)/2 =
+1.265%

The RWS Baccarat HE would also be affected by
offer of side bets such as “Pair”, “Super Six’,
“Insurance” and variation for No Commission games.
The ‘‘Pair”(+10.7% HE) and ‘Super Six’, side bets
increases the overall house edge to a certain degree
but little evidence is available if the “Insurance” side
bet improves or decreases the house edge. The No
Commission Baccarat is quoted to have House
Edge of +1.46%. These elements are left out of the
HE% assumption for the purpose of the study.

Blackjack & Pontoon 1.10% Blackjack/Pontoon house edge is subject to number
of decks, rules applied by the casino and player skill.
RWS game rules and assumption that players use
optimal strategy (basic strategy) will provide:

Blackjack +0.513 %
Pontoon +0.490%

The HE on consideration of players using non-
optimal strategy or no strategy which will give HE
varying from +1% to +14%.

Although a good estimate would be +3.00%, in this
study H E of +1.10% mimics the standard HE
adopted by major regional casinos.

continue …


25.04. 2010

Table 4.1 continued:

Game Ho use Ed ge % Descri ptio n
Texas Hold’Em 1.47% RWS Texas Hold ‘Em is the Progressive with Bonus
Bet variety. Ante wins with straights or better.
Progressive ‘Progressive Gaming’ the license holder states that
the HE on Ante is +5.5935% or an average of
+1.4743% per wager. (TX Hold ‘Em has multiple
wagers per hand).

‘Bonus’ bet has a stand-alone house edge of
+8.5406%. For the purpose of study the impact of
‘Bonus’ bet is not included.

3 Card Poker 3.37% RWS 3 Card Poker is the No-Commission Pair Plus
side bet with Progressive variety. Based on RWS
Progressive pay tables, identified as TCP-07 version of Shuffle
Master’s 3 Card Poker Progressive, the HE is
+3.37%.

The computation of the element of risk and
progressive payout including the Envy Bonus is not
included.

3 Pictures Non- 2.41% RWS version is a variation of 3 Card Baccarat of
Macau. House Edge is based on player bet only.
Commission
Wagering on Tie bet (HE=+20.8%) and Three
Pictures (Dealer) side bet (HE=+83%) are relatively
insignificant and not included for the purpose of this
study.

Tai Sai 2.78% RWS version is similar to Sic-Bo. HE is based on
even money pay-offs ( Big-Small, Even-Odd) only, as
generally accepted.

Ramachandar Siva © 2010


25.04. 2010

4.3 T he Statistical Ap pr oac h

The basic theory of casino games allows the prediction of potential revenue subject to availability
of key information such as game types, operating hours, game pace and value of wagers.
Theoretical Win can be calculated by estimating the handle for the various types of games.

A statistical revenue projection model is designed to tabulate the theoretical win based on
estimates of game Operating Hours (OHD), Game Pace (GPH) and Average Wager per Game
(AWG.)

Information gathered is used to define values for Key Revenue-Performance Indicators (KRI)
such as Games/Hour, Average Wager/Game, Theoretical Win/Game and Theoretical Win per
Hour for each game type offered by RWS. These values, once defined, will allow comparative
study to describe productivity and efficiency levels between the games.

KRI can be used as basis for performance comparison between two casinos.

Key Revenue Performance Indicators – definitions:

OHD - Operating Hours per Day, the total active duration of a gaming table in a 24-hour
casino day.
AWG - Average Wager per Game, the sum of wagers placed by punters in a valid
game.
GPH - Games per Hour, the total number of games conducted in one hour at a table
game. Generally known as the game pace.
PPG - Players per Game, the number of punters participating in a game by placing
wager.
WPP - Wager per Player, the average wager placed by a player for a game.
TWG – Theoretical Win per Game, the statistical theoretical win estimate for a game
conducted.
TWH – Theoretical Win per Hour, the statistical theoretical win estimate for every one
hour of games run.


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The following describes stages of survey, data collection, tabulation and analysis method.

i. Ca si no Ope ratio ns S urvey
1. Survey is conducted for types of games offered by RWS in the common gaming
area.

2. Survey is conducted to count the number of table games, electronic game stations
and slot machines.
The operational areas of the casino are identified and allocation of tables
surveyed.
A count for physical tables available and actual tables in operations.

3. Survey is conducted to record table opening patterns.
Table opening pattern impacts the operating hours, a key component of the
revenue projection model.
A casino-day (24 hours) is divided into 6 periods that define the ‘low-peak’
operation system employed by casinos. Number of tables opened for each
period is recorded by game type, table limit and location (sub-section within the
common gaming area)). This captures the fluctuation of operational capacity to
match changing demand throughout the day.
A 7-day week operation is divided to Weekday and Weekend operating pattern.
Starting Friday evening (period 4, 2000-2400 hrs) the casino is expected to
increase its capacity for each day period running through Saturday and Sunday
evening. This is to cater for the weekend visitor demand caused by additional
arrivals and extended stay of players.
To capture the fluctuation of periodic table opening pattern, table count data is
collected on a Weekday day (Wednesday and Thursday) and a Weekend day
(Saturday). The pattern for Friday and Sunday are derived by estimating
demand and manpower capacity of the casino that dictate table opening. The
manpower capacity by shift is predicted from data and observation completed
on a Weekday and Saturday. Hence survey was not conducted on Friday and
Sunday.


25.04. 2010

ii. Ca si no Visit or A rri val S urve y

1. Daily visitor study provides an estimate of demand and patterns of arrivals.
Periodical (monthly or quarterly) tracking will provide an indication of growth of
customer base and success of casino marketing. Visitors are classified as Local and
International. This allows an understanding of volume and visit patterns of
Singaporeans and foreigners.
2. Data is collected for Weekday (Wednesday/Thursday) and Weekend (Saturday) for
both Local and International visitor.
RWS has one entrance with separate entry points for locals and foreigners.
Visitor headcount for local and international is recorded for 1 5 mi nute s at
intervals of approximately 2 hours throughout the 24-hour day.
Weekday visitor count is assumed for Monday-Friday.
Weekend visitor count assumed for Saturday and Sunday.
To take into count the effect of repeat entry of visitors, weightage of 1/1.5
(Weekday) and 1/1.8 (Weekend) is factored for acceptable head count
estimate.

Refer Appendix 5 – Visitor Survey Plan

iii. Ta ble Gam es Li ve Actio n S urve y

1. This survey provides the required information for projection of revenue and
analysis of table games performance factors.
2. Survey of casino floor completed for 1 Weekday and 1 Weekend.

An operational day of 24 hours is divided into 6 periods of 4 hours to reflect the
casino’s ‘low-peak’ table opening plan, which in turn matches the patronage
fluctuation between the low-peak periods.
A set of data is collected for the defined periods on a Weekday and Weekend.
In total 12 data sets representing all periods are recorded for all the games
selected for the study.
Sample size was set at 5% of the total tables for each game type or a minimum
of 2 tables. Sample tables are selected using simple method of selecting the
nth odd numbered table and the even numbered table next to it for each
observation.
Each observation is fixed at 15 minutes. All games falling (starting) within the
observation period are included in the data collection.


25.04. 2010

3. Data collected – Table limit, Estimated wager per game, Number of Players and
Number of games conducted.

4. The major games surveyed are Roulette, Baccarat, Blackjack and Pontoon. The
data collection and eventual classification assumes Blackjack and Pontoon as same
samples due to technical similarities.

5. Fun games included in the study are those deemed to have significant contribution
to bottom-line. These would be Tai Sai, Caribbean Stud Poker, 3 Pictures, 3 Card
Poker and Texas Hold ‘Em. From the set of games available at RWS, Craps, Mini
Dice, Pai Gow Tiles and Money Wheel are not included in the survey.

6. Experienced casino games supervisors were used to survey the tables. The average
related experience of a surveyor is 15 years. The accuracy of wagers per game
estimation depends much on the skills and experience of the surveyor.

Refer Appendix 6 – Table Games Live Action Survey Plan


25.04. 2010

5. Findings

5.1 Ab o ut RW S Casi no O perati o ns.

5.1. 1 Ge ne ral O ve r view of Ca si no

RWS casino is a Large Destination Casino (LDC) similar to the Genting Group’s flag-ship
casino in Genting Highlands, Malaysia. The approved casino floor space is 15,000 sq
metres.

The casino operates on 2 floors, the ground floor, which is the Common Gaming area
and the mezzanine floor where the Maxim’s Club and Crockford’s gaming rooms are
located. Maxim’s caters to RWS’s club players holding at least a Silver membership
card.

The clubrooms that cater to the medium and high value players are kept out of view and
have controlled access located within the main gaming floor.

The common gaming floor is subdivided to the Main Gaming Hall (non-smoking)
(COMNS), Singapore Citizen & Permanent Resident Room (COMSIN) and the Smoking
Section (COMS).

The exclusive Singaporean room has controlled access. Smoking is permitted in this
room and a small area is demarked as non-smoking section.

The casino has one entry point for all visitors. Entry is restricted to persons of 21 years
and above of age. Local visitors who are required to pay a levy of $100 a day use
dedicated entry and exit points. Foreign visitors are required to produce their passports
for verification when entering and exiting the casino.


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5. 1. 2 Ope rati ng H o ur s a nd Pattern

The casino is open for 24 hours a day, 7 days a week.

Total tables and game types vary throughout a day of operations. The casino employs a
‘low-peak’ manning and operating system to match demands of patronage and
availability staff to man the tables.

For purpose of the study, considerations were given to track the increase and decrease
of table numbers for every period identified as per table 5.1.

Summary of Operation Pattern;
Lowest – Weekday, Periods 1 & 4 (less the 20% tables open)
Highest – Saturday, Periods 4, 5 & 6 (more than 50% tables open)

Chart 5.1 presents the operating capacity by period for typical weekday and weekend.

Table 5. 1: RW S O perati o n Pattern – Lo w-Pe ak Perio ds

Mon – Thursday (Typical Weekday)
08-1200 12-1600 16-2000 20-2400 00-0400 04-0800
Low Mid Mid Peak Peak Low
Friday
08-1200 12-1600 16-2000 20-2400 00-0400 04-0800
Low Mid Peak High-Peak Peak Mid-Low
Saturday
08-10 10-1200 12-1600 16-2000 20-2400 00-0400 04-0800
Low-Mid Mid Peak High-Peak High-Peak High-Peak Mid-Low
Sunday
08-10 10-1200 12-1600 16-2000 20-2400 00-0400 04-0800
Low-Mid Peak High-Peak High-Peak Peak Mid Low


25.04. 2010

C hart 5.1: Ope rati ng Ca pacity b y Pe ri od – Wee kday vs Week end



25.04. 2010

5.1. 3 Types of Games

The major games in the casino based on physical count are,

Baccarat (24%),
Roulette (21%),
Blackjack (8.5%) and
Pontoon (9.6%).

The Casino Regulatory Authority (CRA) website lists 19 variations of games approved for
RWS casino. There are six variations for Baccarat based on commission or non-
commission with or without Super Six or Insurance side bets.

For the purpose of study, table count for Baccarat specifies only commission or non-
commission count. For the estimation of revenue, the variations are not specified.

Craps is not included in the list of approved Game Rules by the (CRA). A physical Craps
table was seen in the common gaming area but not in operation.

Refer Table 5.2a for list of CRA approved games.
Refer Table 5.2b for breakdown of tables by game type as per survey.

Table 5. 2a: A pp ro ve d Game T ype – RW S Comm on Gami ng Se cto r
(listed as approved game rules on CRA Website)

1 Blackjack (with Over and Under 13)
2 Caribbean Stud Poker
3 Casino War
4 Mini Dice
5 Money Wheel
6 Pai Gow
7 Pontoon
8 Progressive Texas Hold 'Em
9 Roulette
10 Tai Sai
11 Three Card Poker
12 Non-Commission Three Pictures
13 Poker
14 Commission Baccarat
15 Commission Baccarat with Insurance
16 Commission Baccarat with Super Six
17 Non-Commission Baccarat
18 Non-Commission Baccarat with Insurance
19 Non-Commission Baccarat with Super Six


25.04. 2010

5.1. 4 P hysical Tab le C o unt ( Co mmo n Gami ng )

The casino offers typical casino table games (as approved by CRA) that are popular in
the Asia-Pacific region.
In total 36 5 p hys ical table s were found on the common gaming floor as of 2nd week
April 2010.
The tables are distributed across sections as following:

Main Hall (Non-smoking) 57 %
Singapore /PR Room 6%
Smoking Area 27%

Table 5.2b: Breakdown of Physical Table Count by Game Type (April 2010)
(Baccarat games are clustered as Commission or Non-Commission only)

RWS Physical Table Sector
GAME Sector Total %
Roulette 76 20.8%
Commission Baccarat 86 23.6%
Non-Commission Baccarat 26 7.1%
Blackjack 31 8.5%
Pontoon 35 9.6%
Caribbean Stud Poker 18 4.9%
Progressive 3 Cards Poker 12 3.3%
3 Pictures 18 4.9%
Progressive Texas Hold' Em 19 5.2%
Pai Gow Tiles 10 2.7%
Tai Sai 16 4.4%
Mini Dice 6 1.6%
Money Wheel 3 0.8%
Casino War 8 2.2%
Craps 1 0.3%
Total Tables 365 100.0%


25.04. 2010

Chart 5.2: RWS Common Gaming Table Games – Distribution (April 2010)


5.1. 5 Elect ro ni c Gami ng Ta ble s (E GT ) & Slot Ma chi nes

The casino also offers electronic betting station based games of Touch Bet Roulette
(168 stations) and Rapid Baccarat (152 stations).

It is to be noted that the electronic gaming tables (EGT) (for roulette and baccarat) are
approved under the Slots Machines licensing scheme. Each betting station is counted
as 1 machine.

As of April 2010, the casino has approximately 900 slot machines. Of the 900 machines
positioned in the common gaming area, approximately 280 machines were only
commissioned and opened for operation on the 11th of April 2010. The planned VIP Slot
Club room is yet to be opened.


25.04. 2010

Table 5.3: RWS Common Gaming – Table Games & Gaming Machines Distribution by floor
sections (April 2010)

Game
RWS Physical Table TOTAL Type
MAIN SMOKING CITIZEN/PR COMMON
GAME TYPE HALL AREA ROOM GAMING %
Roulette 47 22 7 76 20.82%
Baccarat 44 26 16 86 23.56%
Mini Baccarat (No Tax) 16 10 0 26 7.12%
Blackjack 20 8 3 31 8.49%
Pontoon 24 8 3 35 9.59%
Caribbean Stud Poker 10 4 4 18 4.93%
3 Card Poker 8 4 0 12 3.29%
3 Picture 8 4 6 18 4.93%
Texas Hold'Em 8 5 6 19 5.21%
Pai Gow 4 0 6 10 2.74%
Tai Sai 11 2 3 16 4.38%
Mini Dice 3 3 0 6 1.64%
Money Wheel 1 1 1 3 0.82%
Casino War 3 3 2 8 2.19%
Craps 1 0 0 1 0.27%
Total Tables 208 100 57 365 100.00%
Area Table % 57 % 27 % 16 %
Slot Machines 791 109 900
Rapid Roulette 66 102 168
Rapid Baccarat 60 60 32 152
Gaming Machines Total 1220


25.04. 2010

5.1. 6 RW S C omm on Gami ng - Ope rati ona l C ap acity as of Ap ril 2 01 0

With 365 physical gaming tables accounted for as of 2nd week of April 2010, technically
the casino is able to offer 8,7 60 op erati ng ho ur s pe r day.
Operating Hours per table is defined as total hours a gaming table is technically open
and available for business operations. Based on the ‘low-peak’ operations system
described earlier, the casino does not open all its tables on full 24 hours.

For purpose of comparative study, the Full Capacity of the casino’s table games
operations is assumed as the 24 hours opening total of all physically available tables.

The survey of actual tables opened throughout various periods of operations shows that
the Common Gaming division is operating at average operating capacities of 34% on
Weekdays and 42 % on Weekends.

At the lowest operating period (weekday 0400-1200) 69 tables are opened or
approximately 19% of full capacity. The casino achieves highest weekday capacity of
168 tables or 46% at peak periods between 2000-0400 hours.

On weekend (Saturday), the lowest operation period offers 82 tables or 22% of
capacity, while the peak periods offer 197 tables or 54% capacity.

Table 5. 4: Act ual Acti ve Table s – W eekda y vs Weeke nd (A pri l 2 01 0 )

RWS Tables Spread
Period 0800-1000 1200-1600 1600-2000 2000-2400 0000-0400 0400-0800
Weekday 69 138 142 168 168 69
19% 38% 39% 46% 46% 19%
Saturday 82 171 181 185 197 114
22% 47% 50% 51% 54% 31%

Overall observation shows demand far exceeding supply of gaming tables throughout
the mid, peak and high-peak periods. Almost all games are oversubscribed by 2-3
times in the peak and high-peak periods.

Fact-finding shows that RWS’s ability to increase its operational capacity is curtailed by
shortage of dealers.


25.04. 2010

It can be further assumed that RWS may be holding back on employing additional staff
as the demand may see a drop when Marina Bay Sands opens late April. A wait-and
see-approach is likely, to observe changes in demand before committing to employ
additional dealers.

The manpower situation is expected to improve gradually over the next 3 months.

Table 5. 5a: RWS C omm on Gami ng –Wee kda y Actua l Ta ble Sp read vs Full
Capac ity
Physical Table Tables Spread Actual Actual Physical Physical
GAME TYPE Total 8-1000 12-1600 1600-2000 2000-2400 0000-0400 0400-0800 Ops Hours Sector Capacity Sector Actual vs
4 4 4 4 4 4 % Ops Hours % Capacity
Roulette 76 16 28 28 39 39 16 664 22.0% 1824 20.8% 36%
Bacacarat 86 20 24 28 32 32 20 624 20.7% 2064 23.6% 30%
Mini Bac No Tax 26 0 4 4 4 4 0 64 2.1% 624 7.1% 10%
Blackjack 31 11 15 13 17 17 11 336 11.1% 744 8.5% 45%
Pontoon 35 7 19 21 21 21 7 384 12.7% 840 9.6% 46%
CSP 18 4 8 8 8 8 4 160 5.3% 432 4.9% 37%
3 Card Poker 12 0 4 4 8 8 0 96 3.2% 288 3.3% 33%
3 Picture 18 0 8 8 8 8 0 128 4.2% 432 4.9% 30%
Texas Hold'em 19 4 8 8 8 8 4 160 5.3% 456 5.2% 35%
Pai Gow 10 0 6 6 6 6 0 96 3.2% 240 2.7% 40%
Tai Sai 16 6 13 13 16 16 6 280 9.3% 384 4.4% 73%
Mini Dice 6 0 0 0 0 0 0 0 0.0% 144 1.6% 0%
Money Wheel 3 1 1 1 1 1 1 24 0.8% 72 0.8% 33%
Casino War 8 0 0 0 0 0 0 0 0.0% 192 2.2% 0%
Craps 1 0 0 0 0 0 0 0 0.0% 24 0.3% 0%
Total 365 69 138 142 168 168 69 3016 100.0% 8760 100.0% 34%
Spread % 19% 38% 39% 46% 46% 19%
Rapid Roulette 168
Rapid Baccarat 152

Table 5. 5b: RWS C omm on Gami ng–Wee ke nd Actua l Ta ble S pread vs Full
Capac ity
Physical Table Tables Spread Actual Actual Physical Physical
GAME TYPE Total 8-1000 12-1600 1600-2000 2000-2400 0000-0400 0400-0800 Ops Hours Sector Capacity Sector Actual vs
4 4 4 4 4 4 % Ops Hours % Capacity
Roulette 76 24 40 46 46 46 37 956 25.7% 1824 20.8% 52%
Bacacarat 86 24 36 36 36 40 30 808 21.7% 2064 23.6% 39%
Mini Bac No Tax 26 0 4 4 4 4 0 64 1.7% 624 7.1% 10%
Blackjack 31 7 15 16 16 20 13 348 9.4% 744 8.5% 47%
Pontoon 35 11 24 24 24 28 15 504 13.5% 840 9.6% 60%
CSP 18 4 8 8 12 12 8 208 5.6% 432 4.9% 48%
3 Card Poker 12 0 8 8 8 8 0 128 3.4% 288 3.3% 44%
3 Picture 18 0 8 8 8 8 0 128 3.4% 432 4.9% 30%
Texas Hold'em 19 4 8 8 8 8 4 160 4.3% 456 5.2% 35%
Pai Gow 10 0 6 6 6 6 0 96 2.6% 240 2.7% 40%
Tai Sai 16 8 13 16 16 16 7 304 8.2% 384 4.4% 79%
Mini Dice 6 0 0 0 0 0 0 0 0.0% 144 1.6% 0%
Money Wheel 3 0 1 1 1 1 0 16 0.4% 72 0.8% 22%
Casino War 8 0 0 0 0 0 0 0 0.0% 192 2.2% 0%
Craps 1 0 0 0 0 0 0 0 0.0% 24 0.3% 0%
Total 365 82 171 181 185 197 114 3720 100.0% 8760 100.0% 42%
Spread % 22% 47% 50% 51% 54% 31%
Rapid Roulette 168
Rapid Baccarat 152



25.04. 2010

5.2 RW S Ca si no Vi sit or Ar riva l St udy

5.2. 1 Cas ino Vi sito r Ar ri val Projecti o n

Study of visitor arrival provides a good indication of RWS casino’s success. Periodical
tracking of visitors to casino will enable estimation of increasing demand, growth and
success of marketing activities.

This study covers typical Weekday and Weekend visitor patterns only. Various other
visitor patterns that can cause positive fluctuations such as public holidays, school
holidays and special events (such as Singapore Formula One Race week) are not
considered in the estimates.

The following are the key findings of the Casino Visitor Survey:

1.Single Weekday Visitors
Locals 11,400 (51.2 %)
International: 10,800 (48.8 %)
Typical Weekday Total: 22,200
2. Saturday Visitors
Locals: 15,400 (37.1 %)
International: 26,200 (62.9 %)
Typical Weekend Day Total: 41,600

3. Estimated Weekly Visitor arrivals: 194,000
4. Estimated Monthly Visitor arrivals: 776,000
5. Annualised Visitor Arrival Estimate: 10. 1 mil lio n

* Estimates are not adjusted for repeat visitor (on days of study) and Visitor estimates are exclusively
for casino only and do not reflect the RWS overall resort-hotel visitor arrival.

On Weekday, Local visitors slightly lead Foreigners 51.2% against 48.8 %.
On Saturday, Foreigners take an overwhelming lead of 63 %.
Overall the casino can expect 55 % of its total patronage to be foreigners.
As the survey does not include various other positive fluctuation periods, the estimates
are deemed very conservative.


25.04. 2010

Table 5. 5: RW S Casi no – V isit or Projecti o n Lo cal, Fo rei g ners a nd All
Visit ors (including Repeat Visit Factored figures for comparison)

Repeat Visit Not Repeat Visit
Factored Factored
i. Local Vi sito r Pr ojecti o n Total Weighted Total
Daily -Weekday estimate 11,300 7,600
Daily -Weekend estimate 15,400 8,600
Weekly projection 87,600 55,000
Monthly projection 350,000 220,000
Quarterly Projection 1,138,000 715,000
Annual Projection 4,553,000 2,857,000

ii. Internati o nal Vi sito r Projecti o n Total Weighted Total
Daily - Weekday estimate 10,800 7,200
Daily - Weekend estimate 26,200 14,600
Quarterly Projection 1,382,000 846,000
Annual Projection 5,530,000 3,383,000

iii. Al l Vis ito r P r ojectio n Total Weighted Total
Daily - Weekday estimate 22,100 14,800
Daily Weekend estimate 41,600 23,100
Quarterly Projection 2,521,000 1,560,000
Annual Projection 10, 0 83, 00 0 6,2 4 0,0 00


25.04. 2010

5.2. 2 Dail y Vi sit or Ar ri val Pattern

Visitor arrival pattern is typical of any land-based casino.

Arrivals are low in the early morning, before picking-up mid-day to simmer down during
dinner between 5.00 pm to 7.00 pm.

A second surge of visitors is seen after dinner period starting 8.00 pm to midnight
before gradually declining between 2.00 to 6.00 am.

The busiest period for RWS casino is between 8.00 pm to midnight on a Weekday,
while on Saturday the highest Peak is between midnight to 4.00 am.

Chart 5.3 shows the low-peak visitor arrival pattern at RWS casino over a typical
Weekday and Weekend (Saturday).

C hart 5.3: RW S C asi no– Dail y V isit or Arri val Pat tern Weekda y vs Weeke nd



25.04. 2010

5.3 RW S Ca si no R eve nu e Pro je cti on – Co mmo n G a min g

5.3. 1 M o nthl y a nd A nnuali sed Statistical T he ore tical Wi n

Based on its present capacity of operations, game efficiency, pricing and turnover
(handle), the RWS casino is expected to achieve the following revenue estimates:

Sector Monthly ( TW) 12 Months ( TW) Sector %
Table Games $61,100,000 $794,300,000 75.7%
Touch Bet Roulette* $10,900,000 $84,000,000 8.0%
Rapid Baccarat* $2,600,000 $29,000,000 2.8%
Slot Machines* $9,350,000 $141,000,000 13.5%

Annual Revenue Projection (TW) SGD $1.05 Billion

* Estimates for gaming machines are based on survey of machine count, minimum bet limits,
observation of occupancy and wagering by observation only. Relevant variables are based on
industry historical data and empirical values where applicable.

The casino is expected to achieve a dail y a vera ge wi n of SGD $2. 87 milli o n from
the common gaming division.

5.3. 2 Re ve nue Co nt rib utio n by Game Secto r

Table games main revenue contribution is expected from the 3 major games:

Baccarat 24 %
Roulette 19 %
Blackjack/Pontoon 13 %

Gaming Machines sector projections show significant contribution from Touchbet
Roulette EGT with an estimated 8 % contribution to overall casino revenue. Slots
Machines are estimated to contribute 13.5 % based on observations and active
machine count as of April 2010. The Slots revenue is expected to grow in tandem with
growth of tourist and exceed the contributions of EGTs.

Refer to Table 5.6 for revenue projection by game sector.


25.04. 2010

Table 5. 6: RW S Co mmo n G ami ng Statistic al T heoretica l Wi n (Mo nt h & A nnual )

Sector Monthly T. Win Annual T. Win Sector
Casino Total Casino Total %
Roulette $15,600,000 $202,800,000 19%
Baccarat $19,300,000 $250,600,000 24%
Blackjack/Pontoon $10,350,000 $134,500,000 13%
Caribbean Stud $2,600,000 $33,400,000 3%
Texas Hold Em $1,450,000 $18,900,000 2%
3 Card Poker $936,000 $12,000,000 1%
3 Pictures $3,800,000 $49,000,000 5%
Tai Sai $7,100,000 $92,600,000 9%
Total T abl e Gam es TW $61,099,000 $794,300,000 71.9%
ETG Roulette $6,440,000 $83,723,000 8.0%
ETG Baccarat $2,260,000 $29,300,000 2.8%
Slot Machines $10,880,000 $141,400,000 13.5%
Total Annual Revenue (TW) SGD $1,048,800,000 100%
Casino Theoretical Win Average Per Day $2,873,000
Ramachandar Siva 2010

5.3. 3 Co nside rati ons Fo r Projecti o n o f A nnuali s ed Ca si no Re venue

Generally the statistical revenue projection stated above does not take into
consideration various factors that will have impact on RWS’s common gaming revenue
over the next 12 months.
The following factors are to be considered for approximation of Annual Revenue
projection based on results of this study:

The casino operations will increase its operating hours capacity over the next 3
months and may achieve optimum capacity 9-12 months from now. This will
provide direct increase in Operating Hours thus increasing games and handle.
The opening of Marina Bay Sands (MBS) will have a significant impact on
patronage for a period that is uncertain. Reduced patronage would affect the
handle per game, which in turn will directly affect the Theoretical Win.
Apart from cannibalization of patronage, if the MBS casino is a superior
product, RWS may also see an impact on quality of players. The Average
Wager per Player may be reduced if MBS succeeds in attracting and keeping
the higher value players.
On the positive side, overall the RWS table games operation is yet to achieve
typical productivity levels expected in large Asian casinos. The Games per Hour
or game pace is just at 40% at best against expected levels. The experienced
casino management team at RWS is expected to ramp-up the productivity to
optimum levels successfully over the next 6 months.


25.04. 2010

Tabl e 5.7 pro vid es com pariso n RW S g am e pa ce again st t ypi ca l A sian
casi no ex pe ct ations .

Impact of general marketing initiatives – The grind market is sensitive to the
success of general marketing initiatives, specifically the tourist distribution
channel. RWS being a resort-casino, it can be assumed that extensive
marketing plans are in place with results kicking-in in monthly increments of
visitors on an on-going basis. Upon adjustment for lost of patronage to the 2nd
casino in May 2010, fresh visitor arrival is expected from the tourist class.
Though such growth is expected, the net value of players from this class is
expected to be low. Low cost and efficient volume management will be a key
success factor for RWS.


25.04. 2010

5.4 RW S Ga m e P er for m an ce Stu dy

5.4. 1 Ga me Effi cie ncy

The aggregate Games per Hour (game pace) of tables surveyed are used to describe
the efficiency of RWS table games operations.
Table 5.7 is the summary of game pace findings at RWS casino.
The aggregate Games per Hour (GPH) is significantly lower than typical game pace
expectations of established large Asian casinos. Expectations of the Genting casino and
Star Cruises casinos are selected for comparison due to similarity of operations and
player locality.
Typical of new casinos the overall game pace is below expectations largely due to
Lower Dealer experience level and under-developed skills.
Inadequate supply of gaming tables at peak and high-peak periods.
Operational Procedures that place emphasis on security.
The efficiency is expected to improve gradually week by week over the next 3 to 6
months. Specifically the dealer skills development and increased table opening is
expected to improve the game pace.
The game pace is expected to improve at least by 15-20 % over the next 3 months
(May to July).
Even slightest increase in games (i.e. 1 additional game per hour) will create significant
impact in revenue for the casino.

Tabl e 5 .7: RW S St atist ic al G am es Per Hour Vs T ypi c al Ind ustry Ga me Pa ce
(April 2010)
Asia n
RWS RWS RWS RWS RWS Casi no
Game Sector Weekday Friday Saturday Sunday Aggreg ate Typi cal
Roulette 13 11 10 11 11 25-30
Baccarat (Face Down) 20 18 19 20 19 30-45
Blackjack/Pontoon 31 29 27 29 29 60-70
Caribbean Stud 20 21 19 18 19 30-35
Texas Hold Em 17 22 23 20 20 25-30
3 Card Poker 12 9 9 10 10 25-30
3 Pictures 14 18 18 16 17 30-35
Tai Sai 11 12 13 12 12 30-45


25.04. 2010

C hart 5.4: RW S Game s pe r Ho ur – C ommo n Ga ming April 2 0 10



25.04. 2010

5.4. 2 Ga me H andle (T urno ver )

We can assume the handle to represent the turnover or sales volume. (For lack of
information the casinos prefer the Drop as the indicator of sales volume.)
Average Wager (Handle) per hour by game – to describe sales volume for comparative
performance purposes.
The wager per game indicates the players’ wagering power.
There are no industry standards for wager per game or handle to make comparisons.
Observations alone indicate that the casino is receiving above average wagering.
Typically the game of Baccarat attracts the highest volume of wager per hour ($74,000)
and wager per game ($3,800).
The 3 Card Poker has the lowest wagering at $10,500 per hour and $720 per game.
If the casino patronage is affected by opening of the second casino, the handle per
game is expected to drop creating a significant impact on revenue.

Table 5. 8: RW S Casi no Statistical Wage r/ Game and Ha nd le/ Ho ur
(A pril 2 01 0)

SECTOR Wager/game Handle/hour/table
Roulette $2,548 $27,173
Baccarat $3,818 $74,272
Blackjack/Pontoon $1,732 $48,515
Caribbean Stud $1,027 $19,689
Texas Hold Em $1,240 $26,100
3 Card Poker $720 $10,493
3 Pictures $2,098 $53,232
Tai Sai $2,974 $34,636


25.04. 2010

C hart 5.5: RW S A ve rag e Wa ger per Game – C o mmo n Gam ing Ap ril 20 1 0



25.04. 2010

5.4. 3 Ga me Margi ns a nd Profitab ilit y

The statistical Theoretical Win per Game estimates the profit margin between the types
of table games at RWS.
The statistical Theoretical Win per Hour estimates the revenue potential in correlation to
the Operating Hours.
The tabulated figures allow classification and assessment of the games in terms of
profitability.
Tai Sai has the highest TW per Game at $82. This is due to above average demand and
an operating pattern where the dealers tend to accept wagers longer than usual.
The profit performance of 3 Pictures is extraordinary with the highest TW per hour at
$1,300. This reflects the high demand for the game where the Handle per Hour is
recorded to be consistently higher than other games. 3 Pictures tables are about 3.4%
of tables in operations, thus the overall revenue contribution is a low 4%.

Note: It was observed that 3 Pictures and Tai Sai are popular among PRC nationals.
Having the 3 Pictures game pit beside the Tai Sai pit attracts additional wagers from
players waiting for the next game at Tai Sai. The 4 tables are inadequate to cater for the
demand, and the potential of higher contribution is obvious if tables are increased.

Otherwise as expected Baccarat is the most profitable game for RWS while Roulette
has the highest potential to improve.

Table 5. 9: RW S Casi no Statistical TW/ Game a nd TW /H o ur A pril 2 01 0

SECTOR TW/game TW/Hour
Roulette $69 $734
Baccarat $51 $997
Blackjack/Pontoon $19 $536
Caribbean Stud $26 $502
Texas Hold Em $19 $392
3 Card Poker $24 $343
3 Pictures $51 $1,301
Tai Sai $82 $959


25.04. 2010

C hart 5.6: RW S T he oreti cal Wi n p er G ame – C o mmo n Gam ing Ap ril 20 1 0


C hart 5.7: RW S T he oreti cal Wi n p er H our – C o mmo n Gam ing Ap ril 20 1 0



25.04. 2010

6. Conclusions and Discussion

The core purpose of this report is to provide an evaluation of the RWS casino operations in
terms of operational capacity, patronage levels and to estimate the revenue potential.

6.1 RW S Ca si no Ope rati ons Re vie w

Conclusion
On the average less than 50% of the 365 physical tables are opened in the common
gaming area. Tables provided are inadequate to meet demand on peak to high peak
periods. The congestion is affecting revenue efficiency of the games. The variety of
games offered for a new casino is exceptional, 14 distinct table games were seen on
the floor (including Mini Dice and Craps which are yet to be opened). The major games
are Baccarat, Roulette and Pontoon. Heavy action is seen in the Singapore /PR room
on all games during mid to peak periods. Overall RWS must overcome its manpower
woes to increase its operating capacity as soon as possible to capture the revenue
opportunities.

Points of Discussion
The RWS casino is yet to achieve its optimum operating capability.
Demand in the early morning of weekdays is very thin.
Peak periods show demand to be higher than available gaming tables. Players
are seen 2-3 layers deep around the gaming tables.
Immediate increase in table opening is required for peak and high-peak periods
to capitalize on present demand.
Electronic Gaming Tables are extremely popular and have very high take-up
rates.
Slot Operations is average in terms of take-up but is expected to pick-up with
the development of the Slots Players club and increase in tourist class visitors
over the next 3-6 months.
Dealers lack skills to handle heavy action and do not demonstrate game pace
management. Similarly floor supervisors are not seen to be prompting for game
pace.
Operational policies such as using $5 wheel checks for $10 minimum Roulette
tables are self-defeating as the $10 min tables have very high chip action to
literally bring down the game to a standstill.


25.04. 2010

The nine-box baccarat (Bean Table) operating face-down game and having
various side bets such as Insurance, Pairs and Super Six is inefficient for the
common gaming crowd. Among slowest common gaming baccarat ever seen
in any casino.
Various operational improvements are required to get the casino into optimum
revenue generating capacity in the common gaming area where technical
efficiency is key to maximizing revenue.

6.2 Ca si no Visit or s

Conclusion
The casino is well received by both local and foreigners. Assumption that Singaporean
players will leave early on weekdays (before midnight) is unfounded. The casino is seen to
have peak periods between 8.00 pm to 4.00 am on weekdays. Singaporeans are seen to be
streaming into the casino as late as 11.00 pm on weekdays. As expected foreign visitor
numbers are significantly higher on weekend. An adjustment is expected when Marina Bay
Sands opens on the 27th of April 2010.

Points of Discussion
There is equal support from locals and foreigners on weekdays.
On weekends as expected the numbers increase and foreigners overtake the locals
by almost 2 times. It is to be noted that RWS is a city casino comparable with
casinos in Melbourne and Sydney for time being before it develops the tourist
market and fulfill its positioning as an international resort-casino. Thus the foreign
visitor patronage is expected to outnumber local support by a large degree.
Current patronage is within expectations and is expected to grow week by week if
not for the opening of the 2nd casino. The adjustment is to be seen in May 2010.
Foreigners are made of Indonesians, Main-land Chinese, Malaysians, Thais and
Vietnamese.
Indian and European visitors are insignificant.
Main-land Chinese players are major punters at Baccarat, Tai Sai and 3 Pictures in
the Main Gaming Hall. Heavy action was observed at these games.
The local, Singaporean, support is significant and is higher than expected. There
are indications that RWS sets higher table limits in the SIN/PR Room and action is
heavy. Observations made in this study show that the Average Wager per game is
significantly higher in the exclusive Singaporean gaming room.
This suggests the support from Singaporeans, key to the casino’s short-term
stability, is well secured. It will be imperative for RWS to focus on the Singaporean
market with increased efforts to sustain when the 2nd casino opens.


25.04. 2010

6.3 Reve nue per fo rma nce

Conclusion:

It’s a likely case of demand exceeding supply in the case of RWS. The weekday crowds
are manageable, but from Friday evening to late Sunday, the operation is clearly
overwhelmed. Games come down to snail’s pace at Roulette and Tai Sai where chip
action is heavy and dealers are inexperienced to pace the games. Generally the action
in the Singapore/PR area is higher and intense, suggesting the grind locals are high
value players. Although an adjustment is expected when Marina Bay Sands opens,
RWS is expected to pick-up with efficiency improvements and efforts of marketing
kicking-in to bring the tourist class visitors. Information gathered, confirms that the VIP
gaming division is also enjoying a bumper crowd as the premium program commissions
are higher than regional casinos. For time being ( 3-6 months from date of report), RWS
is expected to hold its own against MBS. The two months earlier opening is a big
advantage in terms of stabilization of the operations and services and will keep ahead of
MBS in retaining a larger share of Grind and VIP players.

Points of Discussion:

The annualized revenue projection of SGD $1.05 billion in the common gaming
division is deemed conservative.
The projected SGD $ 2.9 million per day in the common gaming division is
considerable for a new casino and is expected to increase with improvement in
efficiency.
Based on Handle estimates, it can be said RWS casino is enjoying above
average sales.
It can be concluded that a casino based in Singapore receives significantly
higher wager per player in the common gaming sector (or non-commission
play) compared to Malaysia, Macau or Australia. Probably the highest in the
world.
The grind gaming shows very high quality punters (it may be having the highest
wager per game of any casino in the world).


Casino Revenue Potential Study Model By Ramachandar Siva

Casino Revenue Potential Study Model By Ramachandar Siva

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