Las Vegas Sands Corp’s Marina Bay Sands resorts has had its casino license renewed for the next three years, local media reports.
The renewal will take effect from Tuesday, April 26. In February, Genting Singapore had its license renewed for three years.
Earlier this year, Forbes reported the Las Vegas Sands’ Singapore operation will see modest but consistent growth over the next few years, which has benefited from the decline seen in Macau over the last few quarters.
On the VIP side of the business, Las Vegas Sands has seen VIP gaming volume increase from $22 billion in 2010 to $60 billion in 2013, catering to VIP gamblers from neighbouring countries such as Thailand and Malaysia.
After a massive decline in Macau, Singapore’s VIP gaming volume also dropped around 30 percent to $43 billion. However, despite lower volumes, Sands’ revenues actually increased due to a better win percentage.
With respect to mass-market gaming, volume has remained relatively stable at $4.5 billion in the last four years. Mid-single digit growth is expected, and turnover to be around $5.5 billion by 2022.
The Singapore operation posted operating income down 41.7 percent to $186 million, down from $319 million in the first quarter of 2015.
Property generated adjusted EBITDA was $274.9 million, down 33.8 percent compared to 15Q1, but on a hold-normalized basis, adjusted property EBITDA was $382.8 million, up 10.3 percent.