BERNSTEIN: THAILAND POTENTIALLY LVS’S NEXT INVESTMENT

March 16, 2022 Thailand Emerging Markets

Brokerage firm Bernstein has suggested that Thailand might be the “major country” Las Vegas Sands (LVS) executives were referring to when discussing the prospect of investing in a new integrated resort in Asia.

Recently, the chairman and CEO of LVS, Rob Goldstein, announced that the company is looking at building an integrated resort with a similar scale to Marina Bay Sands – but did not disclose which country would host the resort.

“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,” said Goldstein.

According to the executive, the company has had “some rather interesting conversations with a major country there that has reached out to us.”

Late last year, Thailand announced that integrated resorts could soon be a reality in the country, with the government creating five different casino sub-committees.

In light of this, analyst Vitaly Umansky said in a note that LVS may be referring to Thailand, noting that the Thai government has taken a step further in integrated resort exploration.

“We believe LVS is hinting at a potential opportunity in Thailand, which has seen an increase in interest from the government in looking at gaming legalization,” said the Bernstein analyst.

“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,” he added.

Meanwhile, Goldstein has stressed that its plans in Japan are over.

In May 2020, the casino operator formally withdrew its interest in Japan, citing concerns about the legal and regulatory framework in the country. Among the issues at stake were the high costs of developing an integrated resort, a relatively high level of taxation on gaming activities and likely restrictions on gambling by Japanese nationals.