Why Las Vegas Sands is interested in building a casino in Thailand

Las Vegas Sands Corp. on Wednesday reported a nearly 15 percent increase in revenue in its second quarter, capitalizing on investments the company has made in Macao and Singapore in recent months.

Executives said they believe revenue growth has only just begun in the two Asian markets the company dominates.

The call came a week after Sands President and Chief Operating Officer Patrick Dumont called on authorities in Thailand to develop “regulatory clarity” and “long-term vision” as they move toward potentially legalizing gambling as part of development of a large-scale entertainment complex.

Sands is one of several gaming companies eyeing the prospect of developing casinos in Thailand.

In an interview with The Nation at a ceremony in Singapore to break ground on an $8 billion expansion there, Dumont said Thailand is falling behind due to delays and lack of clarity.

“Thailand has the ingredients — culture, hospitality, location,” he said. “But to attract serious investment, you need a framework that gives confidence — regulatory clarity, long-term vision and an unwavering commitment to excellence.”

Pointing to successes Singapore has experienced in the company’s development of integrated resorts, Dumont criticized suggestions by some Thai lawmakers to exclude casinos from entertainment complexes.

“Trying to build an integrated resort without a casino is like building a hotel without Wi-Fi — it may look attractive, but it lacks what makes it competitive,” he said.

He said the casino’s Marina Bay Sands development in Singapore is proof that casino-driven resorts attract global tourists and support high-end developments like luxury hotels and convention facilities.

“Thailand could absolutely be part of that story, but it needs to move decisively,” he said.

Revenue, earnings increases

While Sands executives did not address Thailand in Wednesday’s earnings call, they explained to investors how the company has begun driving revenue, earnings and cash flow success in the two markets it dominates.

Sands, the casino market leader in Macao and the operator of one of two resorts in Singapore, reported net income of $519 million, 66 cents a share, on revenue of $3.175 billion for the quarter that ended June 30. That compares to net income of $424 million, 48 cents a share, on revenue of $2.761 billion for the same period a year earlier.

Dumont said Singapore was a great example of how the company has driven results that have led to stock repurchases and a 25-cent-per-share dividend to investors.

“The more we invest in high-quality assets, the better service levels we have, the more we’re going to have pricing power, the more we’re going to be able to differentiate our product, and the more high-value tourism we’ll be able to bring in,” he told investors.

“It’s the full power of our suite products, the full power of our food and beverage offerings, our MICE (meetings, incentives, conferences, exhibitions) offerings, everything’s really coming together, all the entertainment we do, and a high level of service.”

Sands is focused on business in Asia and earlier this year withdrew from contention for a gaming license in downstate New York, citing uncertainty with the state’s consideration of allowing online casino gambling within its borders.

The company also has unsuccessfully attempted to lobby Texas lawmakers to legalize casino gambling in that state.

The Review-Journal is owned by the Adelson family, including Dr. Miriam Adelson, majority shareholder of Las Vegas Sands Corp., and Las Vegas Sands President and COO Patrick Dumont.

Contact Richard N. Velotta at rvelotta@reviewjournal.com or 702-477-3893. Follow @RickVelotta on X.