This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

Singapore Mulls Spinning the Wheel of Fortune

Casino operators have their fingers crossed that Singapore will soon authorize large, Las Vegas-style casino gambling -- a potential mecca for Southeast Asian gamblers and vacationers.

Although the government of the island city-state made a decision on the issue last Saturday, it won't announce it until Monday, a senior minister said this week.

Last December, Singapore invited casino operators and developers to submit proposals for an "integrated resort" that would combine a casino with shopping, entertainment venues and hotels. The Cabinet has been reviewing the proposals, weighing the potential economic benefits against social costs.

A "yes" decision would set off a high-stakes battle between big casino companies to win the right to develop the single resort, which experts say would be perfectly situated to tap a huge market.

"It should be a great place to put a casino," says Donald McGhie, president of McGhie Consulting, a Reno, Nev., gaming consultancy. "There's a lot of money in Singapore. You have casinos in Macao, but Singapore is a lot closer to Indonesia, Thailand and Malaysia. Singapore has a big airport, which makes it a perfect spot. They have a lot of nice hotels there, too, so they could easily support a casino."

Currently, Singapore has small private gambling clubs with slot machines and horse racing at the venerable Turf Club, but no large casinos.

Merrill Lynch analysts Sean Monaghan and Tony Raza estimate a Singapore mega-casino would receive about $328 million annually from gamblers in neighboring countries. It would also recapture 50% to 60% of the $735 million that Singaporeans spend abroad in casinos each year. Merrill Lynch does and seeks to do business with companies covered in its research reports.

Singapore Senior Minister Goh Chok Tong, who announced that the government had reached a decision, said cabinet members had been divided on a large casino. Some members sided with social groups who fear it will stoke gambling addiction.

1 of 2

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs