GGRAsia – Quarter of LVS 10yr Macau capital pledge for opex: firm

Quarter of LVS 10yr Macau capital pledge for opex: firm

May 30, 2024 Newsdesk Latest News, Macau, Top of the deck

The United States parent of Macau casino operator Sands China Ltd has allotted almost a quarter of its US$4.5-billion “investment commitment through 2032” to operational expenditure (opex), the parent confirmed in a presentation to the Bernstein Strategic Decisions Conference on Wednesday.

An aggregate of US$1.1 billion – or 24.4 percent of the overall commitment – will go on “operating” activity.

Under that heading, it puts: “Increasing international visitation including MICE [meetings, incentives, conferences and exhibitions]; sporting events; entertainment, arts and culture; community tourism.”

That leaves the remaining 75.6 percent of the group’s pledge for Macau up to 2032 – or US$3.4 billion – under the heading “capital investment commitment”.

That is to be shared between: “MICE expansion – podium development adjacent to Venetian Expo; themed attractions, including a new garden-themed attraction in the current Le Jardin (Tropical Garden) adjacent to The Londoner Macao; investment in entertainment facilities; and investment in new food and beverage [outlets], and health and wellness amenities”.

The US$4.5 billion figure quoted by Las Vegas Sands is equal to its MOP36.29 billion investment commitment for its 10-year gaming concession that started in January 2023. The figure represents its initial commitment of MOP30.24 billion, plus 20 percent, due to Macau’s annual citywide casino gross gaming revenue (GGR) having surpassed MOP180 billion within the current concession period.

Circa 92 percent – or US$4.14 billion – of Las Vegas Sands pledged investment in Macau during the 10-year period will be allocated to non-gaming areas, according to the presentation.

Robert Goldstein, chairman and chief executive of Las Vegas Sands, said at the Bernstein event that China’s decision to increase the number of places on the mainland where people can apply for Individual Visit Scheme (IVS) exit visas to travel to Macau was “hugely positive” for the city’s gaming industry.