What does the future hold for Las Vegas Sands?



Exploiting the Japanese casino market 

Japan is thinking about opening up the casino market in the near future. Legalization of casinos in Japan is a long-term catalyst for the casino industry. Las Vegas Sands (LVS) has a huge potential for future growth in Japan, which could be as big as Macao.

LVS’s major competitors for embarking on the Japanese casino market could be Wynn Resorts (WYNN), MGM Resorts (MGM), and Melco Crown Entertainment (MPEL).

ETFs such as the Consumer Discretionary Select Sector SPDR Fund (XLY) and the VanEck Vectors Gaming ETF (BJK) provide overall exposure to these companies. BJK has ~25% exposure to these companies. LVS comprises 8.3% of BJK.

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Vietnam casino project 

Reportedly, Las Vegas Sands (LVS) is considering plans to open a casino in Vietnam in Ho Chi Minh City, which has a good infrastructure. 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.

Ongoing projects in Macao 

Las Vegas Sands (LVS) currently has two new projects in Macao that are expected to open in late 2015 or early 2016. These two projects are the Parisian Macao and the St. Regis at Sands Cotai Central. Both of these projects could provide huge growth potential for LVS in Macao. 

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Expansion in South Korea

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

Key takeaways from 4Q14 earnings call

Sheldon Adelson, chairman and CEO (chief executive officer) of Las Vegas Sands (LVS) said in the 4Q14 earnings call, “We remain focused on potential development opportunities in Japan, Korea and Vietnam. We believe our unique convention-based Integrated Resort development model could bring meaningful benefits to these countries in terms of business and leisure tourism, employment and economic growth.”


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