Las Vegas Sands bets on Asia’s young rich in Singapore expansion

Las Vegas Sands Corp. is targeting Southeast Asia’s young and wealthy as it kicks off an ambitious $8 billion expansion of its luxury resort in Singapore that’s core to the casino operator’s future growth plans. “As those younger people create wealth for themselves, they want experiences that allow them the benefits of their success,” President and incoming Chief Executive Officer Patrick Dumont said during an interview Tuesday. Customers who visit the Marina Bay Sands complex on business trips often then return with their families for a holiday, he said. What the $8 billion expansion includes The new Sands complex, which is expected to open in January 2031 subject to government approval, includes a fresh property with 570 luxury suites, about 18,580 sqm of conference space and a 15,000-seat live entertainment arena. The project underscores Sands’ historic pivot to focus on its Asian operations — typically its biggest revenue earners — after the company said in 2021 that it would sell its iconic properties on the Las Vegas Strip. Singapore has emerged as a burgeoning luxury hub with a robust base of affluent locals, as well as a popular holiday destination that’s seen tourism spending climb to a record. Singapore surpasses Macau as Sands’ top market Singapore overtook Macau as Sands’ most profitable business after reporting a record adjusted earnings before interest, taxes, depreciation and amortization of $605 million in the first quarter. In February, Marina Bay Sands Pte. secured a $12 billion Singapore dollar ($9 billion) multi-tranche loan — the largest such financing ever in Singapore — to help fund the project that has seen its cost balloon from the original estimate of about $3.4 billion made in 2019. Still, Sands faces challenges to its regional ambitions. Macau, the world’s biggest gambling hub, has an uncertain near-term outlook as China pushes the territory to diversify away from gaming to curb capital outflow and money laundering. And in 2020, Sands dropped plans to open a casino resort in Japan due to concerns over the terms of the country’s legislation including the duration of gaming licenses. Elsewhere, Thailand’s government this month withdrew a bill to legalize casinos as political turmoil deepens, although Dumont reiterated that Sands would consider a potential expansion into the country. “It would be a very different development than anything that would happen here in Singapore,” he said. “If the opportunity is right, we’ll consider it.” As well as selling its Las Vegas properties, Sands’ push to streamline its operations has also seen it abandon a bid to develop a New York casino, partly over concerns that rising online betting would hurt the property. By Audrey Wan

Sectors

Insights

Company

Las Vegas Sands bets on Asia’s young rich in Singapore expansion