The Las Vegas Sands Corporation is one of the most powerful gaming companies in the world. In recent years, this company began investing heavily into a number of Asia countries. This week, the Las Vegas Sands proved it’s going all-in on its Asian operations.
Vegas Sands has officially sold its Bethlehem, PA casino. Most analysts feel its to help fund numerous operations in Asia. Today, we’re going to look at why this company is pushing so hard to enter the Asian market. We’ll also look at the decision to sell the Pennsylvania casino.
Why Has the Sands Sold the Bethlehem Casino?
Pennsylvania has legalized casino gambling since 2004. Since this time, a number of major companies have invested in gambling establishments here. The Vegas Sands opened its Bethlehem location in 2009.
This casino is one of Pennsylvania’s top gaming venues. Unfortunately, it hasn’t been much of a revenue generator for the Vegas-based casino company. Because of this, the Sands officially sold the casino to Wind Creek for a cool $1.4 billion.
Many see it as a smart move. The Las Vegas Sands is currently investing in a number of major Asian gambling destinations. The money they’ve earned from the Bethlehem casino can now be used to fund numerous projects across Macau, Singapore, and perhaps even Japan.
Despite revenue earnings in Las Vegas and Macau slowing down, the Sands is still generating massive amounts of revenue. Casino gambling is spreading fast around Asia, and most of the world’s top gambling companies are trying to enter into this market.
Las Vegas Sands Has Numerous Investments in Asia
It makes total sense for the Las Vegas Sands to want to enter into Asia. A number of small countries in this continent have seen their casino industries explode. The Philippines, in particular, is experiencing massive growth in its casino market.
For years now, this company has invested heavily in Macau. The Sands Cotai Central in Macau is receiving a $1.1 billion renovation right now. This company is also spending more than $3 billion on an expansion of the Marina Bay Sands in Singapore right now.
An extra $1.4 billion from selling the Bethlehem is extremely useful. This money will be used to help fund the projects we just touched on.
It’s also possible that the Sands will use this money to invest in Japan. Last year, the Japanese government passed a law to allow casinos to be constructed in four different cities. If the Vegas Sands is granted a license to operate here, they have plans to construct a $12 billion casino complex.
Macau’s Recent Decline Not Scaring Company Executives
As we just mentioned, a number of Asian countries are seeing a huge boost in their casino earnings. This is not the case in Macau. For the past few years, gambling revenue in this city has dropped substantially.
Much of this is due to the trade war between the US and China. The Chinese economy has slowed considerably as a result. More of the VIP bettors here are avoiding Macau and simply choosing to hold onto their money.
To their credit, the Vegas Sands is not fazed. They continue to invest heavily in this city. Executives at the Sands believe Macau’s economy will bounce back, much as it has over the past decade.
It’s interesting to see this company sell its Pennsylvania location. Sands Executives are clearly focusing their energy towards Asia. Will this pay off in the future?