Singapore: Las Vegas Sands to expand non-gaming offering

As part of a deal with the government of Singapore, Las Vegas Sands will expand its non-gaming offering with a €2.9 billion investment.

Singapore.- After it struck a deal with the government of Singapore, Las Vegas Sands will invest €2.9 billion to expand its non-gaming offering. They had reached an agreement to extend the industry’s duopoly, which will soon be enforced.

The casino giant will build a 15k-seat arena, a 1k-suite luxury hotel and additional meeting space at the Marina Bay Sands. That will give them the possibility to add an additional 1k gaming machines to the casino floor.

Singapore and Las Vegas Sands had agreed the government won’t issue gaming licences until 2031 in return. That way, Las Vegas Sands and Genting Group will remain as the only casino companies with a gaming concession on the island.

“We just don’t have enough slot machines, ETGs, rooms. We have demand. We don’t have supply,” Las Vegas Sands Chief Operating Officer Rob Goldstein said recently. “I can’t tell you how frustrating it is that it’s such a wonderful asset that could grow, but right now is not able to.”

According to Macquarie Research analyst Chad Beynon, the plan “will rejuvenate the attraction of the market and could help stem the tide of VIP declines.”

“We believe the potential (mall) sale could help shift capital in Singapore from a mature asset to an early-stage development without substantially increasing the capital investment,” Jefferies analyst David Katz added.

The deal will generate a major success for the company in Singapore.