Sands, Owner of MBS, to Sell Las Vegas Casinos for US$6.25b to Focus on Macau, S’pore

By
Megan
-

Ever wondered what the “Sands” in Marina Bay Sands (MBS) stood for? 

It’s actually from Las Vegas Sands, an American casino and resort company which owns Singapore’s iconic luxury integrated resort. 

Now, Las Vegas Sands has decided to sell off its Vegas properties after a good run of 30 years in order to focus more on Asia, which includes Singapore as well as Macau, the world’s largest gambling hub. 

Here’s all that you need to know about the change. 

Sands, Owner of MBS, to Sell Las Vegas Casinos for US$6.25b to Focus on Macau, S’pore

Las Vegas Sands was founded by Sheldon Adelson, a casino mogul who passed away on 11 Jan this year due to complications arising from cancer treatment. 

Mr Adelson has been recognised for turning Macau from a city of intense gambling parlours into a hub of luxury resorts that boasts revenue surpassing that of Las Vegas’. 

Las Vegas Sands has decided to sell off its Vegas properties for US$6.25 billion (S$8.33 billion) to channel its attention to other markets such as Asia, which is undergoing rapid growth. 

Their particular focus on Macau and Singapore can be accounted for by the large amounts of income generated by these two locations—Macau and Singapore made up 48% and 35% of the company’s total revenue in 2020 respectively, according to data from Refinitiv Eikon. 

The properties being sold include the Venetian Resort Las Vegas and the Sands Expo and Convention Center. 

Apollo Global Management Inc will buy over the operating company of the Venetian for US$2.25 billion (S$3 billion) while the land and real estate assets of the Venetian will be purchased by VICI Properties for US$4 billion (S$5.33 billion). 

In line with this move, Las Vegas Sands is shortening its name to Sands, which honestly does make a lot of sense (pun intended). 

The Impact of COVID-19 on the Gambling Industry

It comes as no surprise that just like every other industry, the gambling sector has been hard hit by the pandemic. 

After all, gambling is fuelled by the ability to travel, as well as large groups of people seated around a table yelling either in agitation or exhilaration, both of which have been unceremoniously stamped out by COVID-19. 

Las Vegas Sands has had to contend with a loss of US$1.69 billion (S$2.25 billion) in 2020, the largest in its history, but vaccination measures are expected to aid recovery. 

For more information, click here.

Feature Image: travelwild / Shutterstock.com

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Megan
Email: [email protected]