SINGAPORE, April 4 (Reuters) - Genting Singapore Ltd shares fell more than 7 percent on Thursday, a day after the casino operator announced a S$4.5 billion ($3.3 billion) investment to expand its resort in the city-state and the government increased entry levies.
In announcing the expansion of Genting’s Resorts World Sentosa and Las Vegas Sands Corp’s Marina Bay Sands resorts late on Wednesday, Singapore’s government said it would raise casino entry levies for citizens and permanent residents from April 4. It also said it would raise tax rates on gross gaming revenue from February 2022.
“Higher investment cost, levies to be introduced on 4 Apr and gaming taxes from CY22F onwards are near-term downers,” analyst Cezzane See at CGS-CIMB said in a research note.
While Genting’s investment plan had long-term benefits, it would “likely reset its (the firm’s) earnings growth and cash pile,” See said.
Shares of Genting Singapore, whose biggest shareholder is Malaysia’s Genting Bhd, fell to S$0.99 on Thursday, their lowest since early January.
($1 = 1.3529 Singapore dollars)
Reporting by Aradhana Aravindan; Editing by Christopher Cushing