A new and potentially substantial Asian IR development allegedly on the cards for global casino giant Las Vegas Sands (LVS) is likely referring to Thailand, according to brokerage Bernstein.
LVS Chairman and CEO Rob Goldstein told the Las Vegas Review-Journal in a weekend interview that the company is in talks with “a major country” in Asia to develop an integrated resort of a similar scale to Marina Bay Sands in Singapore.
“I don’t want to say where, but we’ve had some rather interesting conversations with a major country there that has reached out to us,” Goldstein said.
“It’s proprietary, but we’re looking to build something of scale much like Marina Bay Sands. A lot of countries in Asia have reached out to us over the years, but nothing’s happened. This one feels like it might be a major prospect. A major country, a top-tier country. I hope it’s real.”
In a Monday note, Bernstein analyst Vitaly Umansky suggested Thailand was the logical destination for LVS, which has expressed interest in such a development in the past.
“We believe LVS is hinting at a potential opportunity in Thailand which has seen an increase in interest from the government on looking at gaming legalization,” Umansky said.
“This is not the first time Thailand has been talked about as a gaming opportunity. The market potential could be substantial; however, as with all gaming legalizations, the devil is in the details.”
Umansky has previously poured cold water in the idea of a large-scale integrated resort in Thailand, telling Inside Asian Gaming only last month that such a project shaped as a risky investment.
“I mean sure, you can do a US$200 million property in Phuket and that will make a lot of money, but that’s not what the government is going to allow,” he said in a lengthy interview.
“They’re going to want you to build a US$5 billion property catering only to foreigners and with an absurd tax rate – and none of it will ever pan out.”
It was revealed in December that the Thai parliament was planning to conduct a feasibility study into the possible introduction of casino gaming, including the legal amendments required to legalize casinos as well as the social and economic impact of IRs in other jurisdictions.
