As Las Vegas Sands executives continue to tout their 2025 and long-term prospects in Macau and Singapore, the possibility of dealing with competition from online gaming while building a resort on New York’s Long Island continues to be a concern of the gaming operator.
During the company’s fourth quarter earnings call on Wednesday, CEO Rob Goldstein addressed the topic in response to a question from a Wall Street analyst about Sands’s proposal to obtain a New York gaming license for a planned $6 billion resort and casino around the Nassau Coliseum in Uniondale. A bill introduced last week in the state Senate would legalize online casino gaming, but Goldsten hasn’t said how Sands will react to that if it happens, given the large investment the operator proposes. (New York lawmakers have considered igaming in the previous three sessions, without passing a bill.)
“I believe in New York, that it’s a very strong market,” Goldstein said. “Any market that has land-based gaming and sports betting, igaming seems inevitable. So I think sometime during the construction phase you could be faced with an igaming competitor, and that dilutes the value of the product. That’s our conundrum. The results coming out of neighboring states of New Jersey and Pennsylvania and as far away as Michigan underscore that concern. It’s a great market, and we would like to be there but how do you deal with the ongoing threat that appears to be inevitable. That is our concern as we look at that market.”
In Texas, Sands continues leading an uphill battle in the state legislature to legalize casino gaming. A group it funds, the Texas Destination Resort Association, has been running television ads encouraging lawmakers to back putting it on the ballot as a constitutional amendment. Goldstein said there was nothing to add on the Texas front when asked by an analyst.
Goldstein and COO and President Patrick Dumont continued to tout the operator’s prospects in Asia after the company announced that net revenue was $2.9 billion, a decrease of 0.7% from the prior year quarter. Operating income was $590 million compared to $710 million in the prior year quarter. Net income in the fourth quarter of 2024 was $392 million compared to $469 million in the fourth quarter of 2023.
Consolidated adjusted property EBITDA was $1.11 billion, compared to $1.20 billion in the prior year’s quarter.
Goldstein, citing how gaming revenue in Macau grew 6% in the fourth quarter over 2023 while mass gaming revenue rose 5%, said they believe the Chinese economy and the Macau market will grow and that gaming revenue should exceed $30 billion in 2025.
Dumont said Macau was impacted during the fourth quarter by the 25th anniversary of the reunification of Macau with China.
In a competitive market like Macau, Goldstein said, Sands’s assets of quality rooms, retail, dining and entertainment give it a strong advantage. He said EBITDA was strong despite rooms at the Londoner Grand being under renovation. Sands has 1,000 suites online for the upcoming Chinese New Year holiday, and a total of 1,500 suites will be available by May.
Sands China leads the market in gaming and non-gaming revenue and market share EBITDA, Goldstein said. The company’s objective is to capture high-value and high-margin tourists, and Goldstein said its product advantage will be more pronounced than ever. While 2025 will be strong, he said he couldn’t predict when it would return to pre-pandemic levels.
“Our actions speak loud, and we keep investing and buying into Macau,” Goldstein said. “We believe in China and believe in the return of the base mass and that the premium mass will grow. We wouldn’t be putting billions in the ground if we didn’t believe. We can’t pinpoint or handicap a date or time. It’s going to come back, but we don’t know when.”
In Singapore, Sands had $537 million of property-adjusted EBITDA and mass gaming saw 28% growth over 2023, a reflection of the positive impact of its capital investment program and growth of high-value tourism, Goldstein said.
“The growing appeal of Singapore as a destination is enhanced by a robust entertainment and lifestyle event calendar,” Goldstein said. “There will be a runway of growth” with continued investment.
Goldstein said Singapore has yet to peak and will only accelerate with “a huge growth surge that’s not going to end.”
Dumont credits the quality of tourists who bring high value, which validates the investment Sands has made in Singapore, which has a high-net-worth population and strong business activity.
