Must-know: Las Vegas Sands’ future prospects

Shawn Bolton - Author
By

Aug. 18 2020, Updated 4:40 a.m. ET

Exploiting the Japanese casino market

Japan is thinking about opening its market to casinos in the near future. Legalizing casinos in Japan is a long-term catalyst for the casino industry. Las Vegas Sands (LVS) has a huge potential for growth in Japan. The growth in Japan could be as big as the growth in Macao.

LVS’s main competitors in the Japanese casino market could be Wynn Resorts (WYNN), MGM Resorts (MGM), and Melco Crown Entertainment (MPEL). Exchange-traded funds (or ETFs), like the Consumer Discretionary Select Sector SPDR Fund (XLY), give investors exposure to these companies.

Vietnam casino project

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LVS is considering plans to open a casino in Vietnam. The casino would include a hotel, restaurants, areas for exhibitions and fairs, conference halls, shopping malls, spas, sport halls, a theater, cinemas, a museum, and other entertainment services. The casino would be located in the Ho Chi Minh City. The city has a better infrastructure.

Ongoing projects in Macao

Currently, LVS has two new projects in Macao. They should open in late 2015 or early 2016. The projects are the Parisian Macao and St. Regis Tower at Sands Cotai Central. The projects provide huge growth potential for LVS in Macao. The Parisian Macao has estimated hotel rooms and suites of over 3,000. It has a gaming capacity of ~450 tables and 2,500 slots and electronic table games (or ETGs).

Expansion in South Korea

Due to an increase in gaming competition across Asia, LVS recently announced plans to open a casino resort in South Korea. South Korean officials allow citizens to visit only one of the country’s 17 licensed casinos.

Possible concerns

Recently, the Macau government approved the smoking control legislation. It prohibits smoking in casinos. The legislation is effective on October 6, 2014. However, the legislation allows casinos to maintain designated smoking areas of up to 50%. The areas are open to the public. However, the areas have restricted access and must meet certain conditions.

The legislation may discourage potential gamblers who smoke. They may decide not to visit casinos in jurisdictions with smoking bans—like Macao. The magnitude of how regulations decrease revenues can’t be predicted accurately.

Another concern is about the customer base for the casino in Vietnam. The customer base would be limited to the foreigners in Vietnam. Vietnam doesn’t allow local citizens to enter the casino. Click here to learn about more concerns associated with casinos and gambling.

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