Potential Expansion of Las Vegas Sands' Casino in Singapore
Las Vegas Sands (NYSE: LVS) could potentially increase the floor area dedicated to the casino at its Marina Bay Sands integrated resort in Singapore as part of their previously announced growth plans for the site.
Later in the year, the company is speculated to reveal more information on the possible $7.5 billion expansion of Marina Bay Sands. Nevertheless, certain media outlets suggest that the increased casino area could be present in a separate venue intended to augment the existing resort. Sands plans to build a fourth tower at the iconic site in Singapore. This addition will not include an extra casino, but other rumors point towards the possibility of enlarging the current gaming zone at MBS.
During a Wednesday investors' gathering, Sands' CEO Rob Goldstein mentioned that the new Singapore project will have fewer rooms than MBS, but will include a gaming area and accommodations for live performances. MBS, representing the most valuable casino brand on the globe, is one of two integrated resorts in Singapore. The other is Genting's Resorts World Sentosa.
Singapore, renowned for limiting its gaming environment to the Sands/Genting duopoly, is allowing the operators to expand slightly to draw in affluent non-mass-market tourists. The intention of the new entertainment venue would be to entice high-profile shows from the US and Asia.
It's Wise for Sands to Pursue an Expansion of the Singapore Casino
For Sands, not simply expanding Marina Bay Sands, but also seizing other expansion possibilities in Singapore - the company's only operational market outside of Macau - is a sound decision.
MBS is a key asset in the Asia-Pacific gaming field and improvements are necessary to match the increasing level of competition. It's one of the most profitable casino hotels in the world, known for drawing high-end customers from all over Asia. The company anticipates breaking ground on MBS expansion next year and is expected to complete the project by 2029.
At the investors' conference, Goldstein brought up that Singapore's gaming revenue (GGR) might reach $7 billion this year and escalate to $10 billion over the coming years.
Marina Bay Sands plays a vital role in Singapore's business and leisure travel industries, and Sands profits from its presence there. In 2022, the city ranked ninth in the world in terms of tourism spending, as per the World Travel and Tourism Council (WTTC).
A Boom in the Singapore Gaming Market
In the Asia-Pacific gaming scene, all markets are overshadowed by Macau, but Singapore's development is remarkable, especially when taking into account that growth is propelled by only two venues.
Goldstein remarked at the investors' gathering that "Singapore is undergoing a growth spurt," which makes Singapore into a crucial market.
If MBS and Resorts World Sentosa eventually hit $10 billion in GGR, Singapore would rank as the world's third-largest casino market by that measurement after Macau and Nevada.
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