Las Vegas Sands has long been considered one of the most powerful gaming companies in the world. Unfortunately, it has faced serious difficulties increasing revenue over the past 20 months. New Las Vegas Sands reports show the company once again lost money from its operations in Macau.
Macau continues to deal with shortages in tourism. Much of this has to do with travel restrictions to and from Mainland China. Today, we’ll discuss what Las Vegas Sands has planned to combat this issue.
Here’s what you need to know.
Las Vegas Sands Reports Low Earnings From Macau Casinos
The past two years have been interesting for Las Vegas Sands, to say the least. Throughout 2020, this company seemingly could not catch a break. The death of the company’s founder was just one of the many issues LVS faced.
The company’s executives surprised analysts by announcing the sale of several Las Vegas casino-resorts. This was done, the executives claimed, so that more focus could be spent on Macau. Some predicted this would end up being a smart financial move for Las Vegas Sands, as Covid-19 infections remained fairly low in this territory.
As time has gone on, however, it’s become clear this may have been a mistake. Macau has proven hugely dependent on tourism from Mainland China. Unfortunately, the Chinese government has continuously set intense travel restrictions to and from Macau.
New Las Vegas Sands reports show the company once again lost money from its operations in Macau. Travel restrictions led to large revenue declines over the months of July and August. It remains unclear how the company will fare in Macau throughout the rest of 2021.
Some feel that it is once again time for LVS to focus more on its US operations. What new markets could the company break into?
What Does Las Vegas Sands Have Planned for the Future?
Analysts continue to debate how Las Vegas Sands will perform over the next four months. Some experts feel the company’s share prices are too low, offering lucrative investment opportunities. Others think LVS could continue facing difficulties for years to come.
This company could certainly benefit from big moves in the US market. At the beginning of 2021, executives within the company began a major push to break into Texas. Of course, doing so would require lawmakers in Texas to legalize casinos.
Little progress seems to have been made on that front. Still, lawmakers in Texas seem to be softening their stance toward gambling and LVS could make a huge splash by becoming the first major casino company to open a resort here in the future.
Officials within LVS will continue to hope that the situation in Macau begins to improve. This territory is now the company’s primary market. Unless Mainland China begins to ease its travel restrictions, Las Vegas Sands will need to continue breaking bad news to its investors.
Things remain uncertain in the US casino market, too. Could casino companies soon face a new wave of restrictions?
Officials Debate Increasing Health Restrictions on Casinos
Major casino hubs such as Las Vegas were caught in an unprecedented situation last year. Never before have these cities been forced to shut down in the way they did in March of 2020. It took a devastating toll on the businesses and residents of these cities.
At one point this year, it appeared as if the pandemic was reaching its end. New variants seem to be casting doubt on that idea. In fact, various health officials around the United States are now weighing the pros and cons of additional restrictions on various businesses.
That includes the casino industry. Will mass casino shutdowns be ordered once again? It’s very unlikely. Instead, states could begin ordering their casinos to once abide by a variety of health safety measures that could lead to low visitation rates.
It’s a complicated issue and one that seems likely to continue for quite some time. Some gaming operators are finding success in the form of legal sports betting. We’ll be sure to report more on the state of the land-based casino industry as the year continues.
Are you surprised by the latest Las Vegas Sands reports? When do you expect gaming revenue in Macau to reach pre-pandemic levels? Let us know in the comments section below.