Singapore's bet on junkets is a booster shot for the slowing growth of its nascent gambling industry, but for investors, a big payout is not guaranteed.
The city's two casinos—Genting Singapore PLC's Resorts World Sentosa and Las Vegas Sands Corp.'s Marina Bay Sands, which both opened in 2010—saw blowout growth in their first year of operations, generating more than $6 billion in gross gaming revenue in 2011. Recently though, quarterly results have missed analysts' forecasts. Competition from regional casino rivals in the Philippines and Vietnam hasn't helped. Nor has slower economic growth. Genting's stock is 27% off its 2011 peak.m Full story
