Las Vegas Sands Unveils 50% Expansion at Macau Casino

Strategic Insights -

Las Vegas Sands has unveiled a 50% capacity expansion at its Macau casino, making it the largest in the world by the number of tables. The company added 273 low-bet gaming tables and 365 slot machines to the Sands Macau, taking the total to 740 tables and 1,254 slots. The expansion was completed in 10 months at an estimated cost of US$99 million, and was partially funded by a US$2.5 billion credit facility secured in May to fund various projects related to its US$8 billion multi-phase Cotai Strip development.

Key Takeaways:

  • The Sands Macau now features 740 tables and 1,254 slots, making it the largest casino in the world by the number of tables.
  • The expansion includes 273 low-bet gaming tables with a minimum bet of HK$100, compared to the HK$200 to HK$400 games found elsewhere in the casino.
  • The added slots are spread out on three floors, covering 64,000 square feet, and feature games such as baccarat, black jack and roulette.
  • The Sands has also increased its VIP gaming tables, with an additional 16 tables added in a space previously occupied by a Shanghainese restaurant.
  • The company's revenue has grown mainly due to its aggressive expansion into the high-rollers' market, with a record US$4.26 billion in chip turnover for high-stakes play in the second quarter.
  • Average revenue per table per day at the casino rose from US$5,259 in 2004 to US$7,760 in the second quarter, despite a significant drop in the overall Macau market.
  • Macau is set for a huge injection of new casino supply, with some 8,100 additional tables to be installed by 2010.

Sources:

  • Las Vegas Sands, "Sands Macau Expansion."
  • Deutsche Bank, "Gaming and Lodging Update."
  • "US$2.5 billion credit facility secured in May" - Deutsche Bank, "Gaming and Lodging Update."
  • "US$8 billion multi-phase Cotai Strip development" - Las Vegas Sands, "Sands Macau Expansion."
  • "US$99 million expansion cost" - Deutsche Bank, "Gaming and Lodging Update."
  • "Bill Lerner, senior gaming and lodging analyst at Deutsche Bank" - Deutsche Bank, "Gaming and Lodging Update."

Statistics:

  • 273 low-bet gaming tables added to the Sands Macau.
  • 365 slot machines added to the Sands Macau.
  • 740 tables and 1,254 slots at the Sands Macau.
  • 64,000 square feet of floor space for the expanded halls.
  • 17% increase in tourist arrivals in Macau in the first half of the year.
  • 10.4 million visitors to Macau in the first half of the year.
  • US$4.26 billion in chip turnover for high-stakes play in the second quarter.
  • Average revenue per table per day at the casino rose from US$5,259 in 2004 to US$7,760 in the second quarter.
  • Average revenue per table per day on the mass-market-dominated Las Vegas Strip was US$2,239 in June.
  • Macau is set for a huge injection of new casino supply, with some 8,100 additional tables to be installed by 2010.
  • US$8 billion multi-phase Cotai Strip development budget.