Casino Gambling Business: Las Vegas Sands Generates $3B In Revenue In Q2Gaming Win Up More Than 20 Percent For Company |
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Las Vegas Sands, the largest casino developer in the world based on revenue, said that it took in $3.14 billion in the second quarter, up 18.6 percent year-over-year.
The company, which has casinos in the U.S., China and Singapore, won $2.46 billion from gamblers during the quarter ending June 30, up more than 22 percent year-over-year
The performance, which beat Wall Street expectations, was largely due to the company’s business in Asia. Sands has benefited from a market turnaround in Macau. The city has recorded 12 straight months of gaming revenue gains, which followed a two-year downswing. Since 2002, Sands has invested more than $13 billion in the only Chinese city with legal gambling.
Sands’ six properties in Macau generated $1.82 billion of the $3.14 billion, the company said. Its revenue there was up 23 percent compared to $1.48 billion from the second quarter of 2016.
“The Macau market is growing and its growth rate has been accelerating for four consecutive quarters,” Sands’ Chairman Sheldon Adelson said in a statement. “At the same time, the significant new supply that has been added on [the] Cotai [Strip] since 2015, amounted to more than 8,000 hotel rooms and more than US$13 billion of additional invested capital, has successfully been absorbed by the market.”
The company’s casino in Singapore, Marina Bay Sands, saw its revenue increase 17.7 percent in the quarter to $836 million. That was thanks to the gamblers, with gaming win of $690 million representing a 24 percent gain year-over-year.
The company’s Nevada properties, The Venetian Las Vegas, The Palazzo and the Sands Expo and Convention Center, generated $384 million in revenue during the quarter, up eight percent year-over-year. Nearly $100 million of the total came from gaming, up nearly 20 percent.
However, table game and slot machine drop were down 6.1 percent and 8.5 percent, respectively. The firm’s Sin City casinos retained 16.3 percent of $352 million in table game drop, compared to 10.6 percent last year, and 8.3 percent of $606 million in slot machine bets, up from 7.7 percent. In other words, there was less gambling at the Las Vegas properties but gaming revenue was up thanks to gamblers being less fortunate than they were last year.
According to Sands, its expected baccarat win percentage is 18-26 percent, better than the rest of the table games which have an expected win percentage of 16-24 percent.
Over in Pennsylvania, where Sands has a single casino, revenue of $147 million was basically unchanged year-over-year. Gambling at Sands Bethlehem accounted for 93 percent of the revenue, but it was also less than a percent more than what was won during the same period last year. The Keystone State gaming market has been flat in recent years.
Sands said its company-wide net income increased 62 percent to $638 million in the second quarter of 2017, compared to $394 million in the year-ago quarter.
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