First, it was Macau that reported decreased gambling revenues due to a shrinking pool of big spenders, and now Singapore is dealing with the same problems.

As Chinese authorities started a campaign to crack down on corruption earlier this year, high-rollers are staying away from casinos. There are two glitzy casino resorts in the country and they both used to have special VIP tables reserved for their most loyal – and most generous – customers. Now they’re both struggling without them and things are beginning to get ugly between the two competitors.

The resorts are run by American casino operator Las Vegas Sands and Malaysia’s Genting Resorts. The former reported a 34% drop in VIP volume at its Marina Bay Sands resort, while the latter is expected to post a similarly painful slide in its third quarter financial report.

When combined, casino profits in Singapore reach $6 billion per year, and big spenders account for about half of this revenue. As gambling laws don’t allow casinos in China, players usually flee to destinations like Macau or Singapore. But in the first half of 2014, the number of Chinese visitors was down 30% to 871,000, and profits followed the same downward trend.

Business Insider: The Battle For Singapore’s Shrinking Pool Of High-Rolling Gamblers Is Getting Ugly

Casino mogul Sheldon Adelson, chief executive of Las Vegas Sands, has accused its rival of offering overly generous incentives and credit to draw high-rollers to its Resorts World Sentosa.

During a company earnings call last month, Adelson said: “Maybe one day, they will get used to competing on the basis of a quality product, if they ever build one, and they won’t have to buy the business.”

Tan Hee Teck, president of Genting Resorts, admitted that the company’s casinos in Singapore will be facing some financial difficulties during the next few months or possibly even longer.

“I suppose some operators may not want to admit it, but at least from our side, we believe that the situation will continue to be quite challenging at least for the next 6 to 12 months,” he said.

Ever since they opened in 2010, these two casinos have been reporting billion-dollar revenues, mostly based on business brought in by Chinese high-rollers, a category of players which came to be vital to the success of these gambling venues.

In a note published on October 31, Fitch Ratings wrote: “Growth in Singapore gaming revenue has stalled, and is likely to contract slightly in 2014 with macroeconomic and political factors in China being the principal cause.”

TheStar: S’pore casinos brace for battle as VIP volumes fall

The two gambling venues in Singapore have been trying to rely less on casino revenue and push to earn more from entertainment, conference facilities, hotels and shopping. But even so, gambling brings in 80% of total profits for both Las Vegas Sands and Genting Resorts. They both boast profit margins of about 50%, the highest in the casino industry.

One way to lure more foreign high-rollers to a casino is to offer credit. With Singaporean players, this strategy doesn’t work because the state has set stricter rules for locals. Sometimes casinos also use commission, a small rebate on the amount of money they’ve spent.

Terence Tay, a former general counsel for Genting Singapore who now runs a consultancy explained: “Credit checks can be very fast for some gamblers – in 15 minutes or so you can probably get approval for US$1mil, and with US$1mil you can still roll up to US$8 or US$9mil.”

This plan sometimes backfires, as credit collection can turn out to be tricky. Singaporean casinos are already waiting on hundreds of millions of dollars to be repaid by gamblers who lost huge amounts of money. And the majority of these players are based overseas, so recovering the cash is even more difficult.

For Genting, “trade and other receivables” – which represents the money owed by customers – has seen a 61% rise since June 2012. In the quarter ending July 2014, player debt stood at S$1.2 billion. Total revenue has increased 7% in the same period.

Vicky Melbourne, head of industrials for South-East Asia and Australasia ratings at Fitch said: “What’s going to be the greater challenge to the Singapore operators, and certainly more longer-term, is that across the region, there’s a lot more political momentum to legalize casinos.”

The Straits Times: Luck running out for Singapore’s two casinos?

Earlier this year, UOB Kay Hian analysts have pointed out that Singapore’s casino market reached saturation in 2012. A year before that, total gaming revenue had reached a record amount of $7.92 billion; after that, it started to decline and went down 8.3% to $7.26 billion in 2012. It wasn’t until last year that casinos have started to recover, but the rebound was modest – just 3%.

Core earnings are also stagnating, with Marina Bay Sands earnings before interest, taxes, depreciation and amortization (EBITDA) coming in at US$1.5 billion in 2013, compared to US$1.4 billion the year before. Net profit was higher during its second quarter, but VIP and mass-market business was declining.

For Genting Singapore, EBITDA dropped from $1.35 billion in 2012 to $1.15 billion in 2013. Analysts concluded the resort has reached its full growth potential. According to online gambling news, this was partially because of the local Government’s heavy regulation of the casino industry, which imposes a $100 entry fee for Singaporean players and punishes companies for marketing their services to locals.

First, it was Macau that reported decreased gambling revenues due to a shrinking pool of big spenders, and now Singapore is dealing with the same problems.

As Chinese authorities started a campaign to crack down on corruption earlier this year, high-rollers are staying away from casinos. There are two glitzy casino resorts in the country and they both used to have special VIP tables reserved for their most loyal – and most generous – customers. Now they’re both struggling without them and things are beginning to get ugly between the two competitors.

The resorts are run by American casino operator Las Vegas Sands and Malaysia’s Genting Resorts. The former reported a 34% drop in VIP volume at its Marina Bay Sands resort, while the latter is expected to post a similarly painful slide in its third quarter financial report.

When combined, casino profits in Singapore reach $6 billion per year, and big spenders account for about half of this revenue. As gambling laws don’t allow casinos in China, players usually flee to destinations like Macau or Singapore. But in the first half of 2014, the number of Chinese visitors was down 30% to 871,000, and profits followed the same downward trend.

Business Insider: The Battle For Singapore’s Shrinking Pool Of High-Rolling Gamblers Is Getting Ugly

Casino mogul Sheldon Adelson, chief executive of Las Vegas Sands, has accused its rival of offering overly generous incentives and credit to draw high-rollers to its Resorts World Sentosa.

During a company earnings call last month, Adelson said: “Maybe one day, they will get used to competing on the basis of a quality product, if they ever build one, and they won’t have to buy the business.”

Tan Hee Teck, president of Genting Resorts, admitted that the company’s casinos in Singapore will be facing some financial difficulties during the next few months or possibly even longer.

“I suppose some operators may not want to admit it, but at least from our side, we believe that the situation will continue to be quite challenging at least for the next 6 to 12 months,” he said.

Ever since they opened in 2010, these two casinos have been reporting billion-dollar revenues, mostly based on business brought in by Chinese high-rollers, a category of players which came to be vital to the success of these gambling venues.

In a note published on October 31, Fitch Ratings wrote: “Growth in Singapore gaming revenue has stalled, and is likely to contract slightly in 2014 with macroeconomic and political factors in China being the principal cause.”

TheStar: S’pore casinos brace for battle as VIP volumes fall

The two gambling venues in Singapore have been trying to rely less on casino revenue and push to earn more from entertainment, conference facilities, hotels and shopping. But even so, gambling brings in 80% of total profits for both Las Vegas Sands and Genting Resorts. They both boast profit margins of about 50%, the highest in the casino industry.

One way to lure more foreign high-rollers to a casino is to offer credit. With Singaporean players, this strategy doesn’t work because the state has set stricter rules for locals. Sometimes casinos also use commission, a small rebate on the amount of money they’ve spent.

Terence Tay, a former general counsel for Genting Singapore who now runs a consultancy explained: “Credit checks can be very fast for some gamblers – in 15 minutes or so you can probably get approval for US$1mil, and with US$1mil you can still roll up to US$8 or US$9mil.”

This plan sometimes backfires, as credit collection can turn out to be tricky. Singaporean casinos are already waiting on hundreds of millions of dollars to be repaid by gamblers who lost huge amounts of money. And the majority of these players are based overseas, so recovering the cash is even more difficult.

For Genting, “trade and other receivables” – which represents the money owed by customers – has seen a 61% rise since June 2012. In the quarter ending July 2014, player debt stood at S$1.2 billion. Total revenue has increased 7% in the same period.

Vicky Melbourne, head of industrials for South-East Asia and Australasia ratings at Fitch said: “What’s going to be the greater challenge to the Singapore operators, and certainly more longer-term, is that across the region, there’s a lot more political momentum to legalize casinos.”

The Straits Times: Luck running out for Singapore’s two casinos?

Earlier this year, UOB Kay Hian analysts have pointed out that Singapore’s casino market reached saturation in 2012. A year before that, total gaming revenue had reached a record amount of $7.92 billion; after that, it started to decline and went down 8.3% to $7.26 billion in 2012. It wasn’t until last year that casinos have started to recover, but the rebound was modest – just 3%.

Core earnings are also stagnating, with Marina Bay Sands earnings before interest, taxes, depreciation and amortization (EBITDA) coming in at US$1.5 billion in 2013, compared to US$1.4 billion the year before. Net profit was higher during its second quarter, but VIP and mass-market business was declining.

For Genting Singapore, EBITDA dropped from $1.35 billion in 2012 to $1.15 billion in 2013. Analysts concluded the resort has reached its full growth potential. According to online gambling news, this was partially because of the local Government’s heavy regulation of the casino industry, which imposes a $100 entry fee for Singaporean players and punishes companies for marketing their services to locals.

Over the past few years, economists and analysts have warned about the “casino saturation” in the north-eastern part of the US. Now authorities and business owners are witnessing the disaster and there’s nothing they can do about it.

With growing competition from other states in the area, New Jersey’s Atlantic City is in a desperate financial situation. There is no way out this time. The only thing left to do is to accept the defeat and close the resort’s unprofitable casinos, one by one. Otherwise, authorities are considering rebranding the city and turning it into a destination that offers visitors more than just casino games.

Let’s take a closer look at what recent gambling news have to say on the subject.

Philly.com: With casinos closing, Atlantic City considers future

About 2,100 employees received 60-day notices the next day, after Caesars Entertainment announced it was closing its Mardi Gras-themed casino, Showboat, by the end of this summer. The bad news comes only a few months after the Atlantic Club also went out of business and Revel is also likely to shutter if its owner doesn’t find a new buyer.

“Atlantic City is undergoing a massive economic transition,” Mayor Don Guardian said at a news conference Friday held at the site where a new nongaming attraction is being built. “We know it is painful for those who are losing their casino jobs.”

Liza Cartmell, chief executive officer of the nonprofit Atlantic City Alliance, told reporters: “Recent developments in Atlantic City are part of the larger picture of excess gaming across the United States that’s leading to painful economic decisions.”

There are simply too many casinos in the country, industry experts say. Over the past ten years, 26 gambling venues opened in the Northeast corridor alone; a dozen of them are located in Pennsylvania and a new one is scheduled to open in Baltimore later in August. The development of the casino industry in the area has put an end to the monopoly enjoyed by Atlantic City for nearly three decades.

ABC News: Atlantic City Casino Shutdown Needed, Analysts Say

The number of casinos in Atlantic City could go down from 12 to 9 by Labor Day, as analysts say the resort has too many gambling venues.

“We know that the oversupply of gaming product is a regional issue, as we’re seeing the effects of the pressure all around Atlantic City,” says Israel Posner, executive director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton College.

Atlantic City is going through a rough patch and Mayor Don Guardian believes a makeover will be difficult, but necessary. Officials say the time has come for the city transform itself and become a multi-faceted destination, where casino games are just one of the many entertainment options available.

“Although it is sad today, it’s part of the transition that Atlantic City needs to have,” the mayor told reporters. “There is pain as we go through this transition, but it’s critical for Atlantic City to realize we are no longer the monopoly of gaming on the East Coast. If you build more and more casinos and don’t increase the amount of people coming to them, you’re sharing that wealth. We’re just going through a very difficult time.”

Boston Globe: Atlantic City sees our folly of casinos

The US Supreme Court struck down New Jersey’s attempt to legalize sports betting and Atlantic City casinos are going out of business, despite Governor Chris Christie pumping $260 million of his constituents’ money into one of the local casinos.

While Connecticut’s Mohegan Sun and Foxwoods are considered interlopers who steal customers from the New Jersey resort, the story published in the Boston Globe says all players are “suckers, willing to part with their money for the house, because the house always wins.”

Locals worry about Massachusetts casinos stealing even more business. The market is already oversaturated, they say, and Atlantic City is already competing with Vegas, Connecticut and Philadelphia.

The Guardian: Atlantic City shutters casinos as north-east US builds gambling market

It’s becoming more and more obvious that there are too many casinos in Atlantic City. Competition has caused the Atlantic Club to close its doors, Revel says it will do the same unless owners find a new buyer and Caesars Entertainment is giving up on the Showboat.

During his five years in office, Mayor Don Guardian saw a quarter of the city’s casinos close. He believes this is a sign that Atlantic City needs a makeover, from a popular gambling resort to a multi-faceted destination instead.

Over the past seven years, casino revenue in the city has plunged from $5.2 billion to almost half that amount, reaching just $2.86 billion in 2013. Meanwhile, Pennsylvania surpassed Atlantic City as the country’s second largest casino market after Nevada. And with New Jersey’s new laws allowing locals to play casino games and online poker tournaments, profits soared even more.

All this sounds like bad news, but Fitch Ratings has a different opinion, claiming that “the closure makes financial sense for Caesars and is a positive for the oversupplied Atlantic City market.” According to the expert, Caesars will regain lost customers at its other resorts in the area.

CityLab: Atlantic City Is Becoming the Detroit of Casino Culture

At the beginning of the year, when the media argued that Atlantic City could be going the way of Detroit – which suffered a big shock after being forced to shut down gambling venues – State Senate President Stephen Sweeney and Chris Christie both promised they would not let the city “become Detroit”. Now, the resort is facing a wave of casino closings.

Former casino workers are furious over losing their jobs and Bob McDevitt, president of Local 54 of the Unite-HERE union, told reporters that Caesars’ decision to shut down the Showboat was “a criminal act”, as the venue was still making profit.

To help former employees find new positions within the company, Caesars promised to give them preference for existing roles at the company’s other three Atlantic City venues.

Over the past few years, economists and analysts have warned about the “casino saturation” in the north-eastern part of the US. Now authorities and business owners are witnessing the disaster and there’s nothing they can do about it.

With growing competition from other states in the area, New Jersey’s Atlantic City is in a desperate financial situation. There is no way out this time. The only thing left to do is to accept the defeat and close the resort’s unprofitable casinos, one by one. Otherwise, authorities are considering rebranding the city and turning it into a destination that offers visitors more than just casino games.

Let’s take a closer look at what recent gambling news have to say on the subject.

Philly.com: With casinos closing, Atlantic City considers future

About 2,100 employees received 60-day notices the next day, after Caesars Entertainment announced it was closing its Mardi Gras-themed casino, Showboat, by the end of this summer. The bad news comes only a few months after the Atlantic Club also went out of business and Revel is also likely to shutter if its owner doesn’t find a new buyer.

“Atlantic City is undergoing a massive economic transition,” Mayor Don Guardian said at a news conference Friday held at the site where a new nongaming attraction is being built. “We know it is painful for those who are losing their casino jobs.”

Liza Cartmell, chief executive officer of the nonprofit Atlantic City Alliance, told reporters: “Recent developments in Atlantic City are part of the larger picture of excess gaming across the United States that’s leading to painful economic decisions.”

There are simply too many casinos in the country, industry experts say. Over the past ten years, 26 gambling venues opened in the Northeast corridor alone; a dozen of them are located in Pennsylvania and a new one is scheduled to open in Baltimore later in August. The development of the casino industry in the area has put an end to the monopoly enjoyed by Atlantic City for nearly three decades.

ABC News: Atlantic City Casino Shutdown Needed, Analysts Say

The number of casinos in Atlantic City could go down from 12 to 9 by Labor Day, as analysts say the resort has too many gambling venues.

“We know that the oversupply of gaming product is a regional issue, as we’re seeing the effects of the pressure all around Atlantic City,” says Israel Posner, executive director of the Lloyd D. Levenson Institute of Gaming, Hospitality and Tourism at Stockton College.

Atlantic City is going through a rough patch and Mayor Don Guardian believes a makeover will be difficult, but necessary. Officials say the time has come for the city transform itself and become a multi-faceted destination, where casino games are just one of the many entertainment options available.

“Although it is sad today, it’s part of the transition that Atlantic City needs to have,” the mayor told reporters. “There is pain as we go through this transition, but it’s critical for Atlantic City to realize we are no longer the monopoly of gaming on the East Coast. If you build more and more casinos and don’t increase the amount of people coming to them, you’re sharing that wealth. We’re just going through a very difficult time.”

Boston Globe: Atlantic City sees our folly of casinos

The US Supreme Court struck down New Jersey’s attempt to legalize sports betting and Atlantic City casinos are going out of business, despite Governor Chris Christie pumping $260 million of his constituents’ money into one of the local casinos.

While Connecticut’s Mohegan Sun and Foxwoods are considered interlopers who steal customers from the New Jersey resort, the story published in the Boston Globe says all players are “suckers, willing to part with their money for the house, because the house always wins.”

Locals worry about Massachusetts casinos stealing even more business. The market is already oversaturated, they say, and Atlantic City is already competing with Vegas, Connecticut and Philadelphia.

The Guardian: Atlantic City shutters casinos as north-east US builds gambling market

It’s becoming more and more obvious that there are too many casinos in Atlantic City. Competition has caused the Atlantic Club to close its doors, Revel says it will do the same unless owners find a new buyer and Caesars Entertainment is giving up on the Showboat.

During his five years in office, Mayor Don Guardian saw a quarter of the city’s casinos close. He believes this is a sign that Atlantic City needs a makeover, from a popular gambling resort to a multi-faceted destination instead.

Over the past seven years, casino revenue in the city has plunged from $5.2 billion to almost half that amount, reaching just $2.86 billion in 2013. Meanwhile, Pennsylvania surpassed Atlantic City as the country’s second largest casino market after Nevada. And with New Jersey’s new laws allowing locals to play casino games and online poker tournaments, profits soared even more.

All this sounds like bad news, but Fitch Ratings has a different opinion, claiming that “the closure makes financial sense for Caesars and is a positive for the oversupplied Atlantic City market.” According to the expert, Caesars will regain lost customers at its other resorts in the area.

CityLab: Atlantic City Is Becoming the Detroit of Casino Culture

At the beginning of the year, when the media argued that Atlantic City could be going the way of Detroit – which suffered a big shock after being forced to shut down gambling venues – State Senate President Stephen Sweeney and Chris Christie both promised they would not let the city “become Detroit”. Now, the resort is facing a wave of casino closings.

Former casino workers are furious over losing their jobs and Bob McDevitt, president of Local 54 of the Unite-HERE union, told reporters that Caesars’ decision to shut down the Showboat was “a criminal act”, as the venue was still making profit.

To help former employees find new positions within the company, Caesars promised to give them preference for existing roles at the company’s other three Atlantic City venues.