During Las Vegas Sands’ first-quarter earnings call, CEO Rob Goldstein addressed both setbacks in New York‘s licensing process and the company’s interest in Thailand‘s gaming potential, shedding light on its strategic outlook amidst evolving market dynamics.

Las Vegas Sands Faces Extended Timelines in New York

In response to delays in New York’s casino licensing, Goldstein expressed frustration, citing ongoing uncertainties surrounding the timeline for approvals. Las Vegas Sands had anticipated progress in 2024 but now faces extended timelines, with decisions pushed back to potentially 2025 or 2026. 

Patrick Dumont, Las Vegas Sands president and COO, also expressed his exasperation: “Now they are saying 2025 or 2026, but I do not think we have any real clarity. And to be honest, it is confusing and disappointing because we have done a lot of work in New York and invested a lot of time into it. So I have no guidance because I do not really know what to say with candor and insight.”

Regulatory hurdles, particularly in New York City, have impeded advancements, with zoning amendments awaiting approval to facilitate casino developments within the city’s five boroughs. 

Moreover, legal disputes, including challenges from Hofstra University regarding a planned resort near the Nassau Coliseum, have further complicated matters. Goldstein emphasized the need for clarity and resolution in New York’s regulatory landscape, reflecting the company’s long-standing commitment to the market.

Las Vegas Sands Eyes Thailand Amidst New York Setbacks

Despite challenges in New York, attention turned to Southeast Asia, with Wall Street analyst Chad Beynon from Macquarie US Equity Research probing about prospects in Thailand. Goldstein responded optimistically, acknowledging Thailand’s potential to expedite developments. 

He highlighted the market’s allure, citing its sizable population, accessibility, and status as one of Asia’s premier resort destinations. Goldstein affirmed the company’s interest in Thailand, underscoring ongoing efforts to assess opportunities and determine feasibility in the region.

The discussion on Thailand aligns with broader industry sentiments, reflecting growing interest in the Southeast Asian nation’s gaming landscape. Thailand’s recent strides in passing legislation for legal casino gaming suggest that it may launch its first casino before Japan, potentially opening doors for rapid tourism and economic growth. 

With overwhelming support from the House of Representatives and favorable tax rates, experts anticipate Thailand to become a prime destination for international casino companies, possibly outpacing Japan in the race to establish integrated resorts. 

As Las Vegas Sands navigates through regulatory challenges in New York, the company remains committed to exploring new opportunities and expanding its global footprint. Despite uncertainties in mature markets, the company’s strategic vision extends towards emerging destinations like Thailand, where it seeks to leverage its expertise and capitalize on evolving market dynamics.

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Macau’s gaming operators are facing the challenge of upcoming debt maturities, with significant obligations slated for 2025. However, amidst the financial landscape shaped by the COVID-19 pandemic, these operators seem prepared to handle the situation with cautious optimism.

Macau Casinos Delay Debt Refinancing for 2025, Eyeing Improved Cash Flow

According to recent insights from S&P Global Ratings, Macau’s gaming operators are strategizing to delay refinancing plans for their 2025 debt maturities. This delay is primarily aimed at capitalizing on potential reductions in interest rates and anticipating improved cash flow from the Macau market in the coming quarters.

Melissa Long, director of corporate ratings at S&P Global, highlighted that operators are likely to wait before addressing these 2025 maturities, expecting a favorable shift in interest rates and enhanced cash flow generation from the Macau market. Long emphasized the operators’ intention to prudently manage larger maturity needs while actively seeking to preserve liquidity positions.

While some operators are expected to face current debt obligations in the near term, S&P Global remains optimistic about its ability to maintain sufficient cash resources to sustain liquidity positions.

The agency also anticipates continued support from banks, buoyed by the market’s robust recovery and operators’ improved cash flow and leverage metrics.

MGM China and Wynn Macau Set to Weather 2024 Debt Maturities

MGM China and Wynn Macau, specifically mentioned in S&P Global’s analysis, are deemed well-positioned to handle their 2024 maturities without the need for immediate refinancing. This financial stability is attributed to their existing cash reserves and access to revolving credit facilities.

The debt landscape in Macau’s gaming sector reflects the broader trend of recovery in the region’s gambling industry. Despite the challenges posed by the pandemic, Macau’s casino revenue is projected to surpass pre-COVID levels for the first time in 2024. Factors such as increased outbound Chinese travel and strong performance during the Lunar New Year break contribute to this optimistic outlook.

The shift towards mass-market gambling following regulatory crackdowns on VIP junkets indicates a strategic adaptation among casino operators. This transition, coupled with ongoing improvements in cash flow and market share, underscores the resilience of Macau’s gaming industry.

Looking ahead, the positive trajectory of Macau’s casino revenue and the gradual easing of pandemic-related restrictions bode well for the sector’s long-term stability. While challenges persist, including looming debt maturities and competitive pressures, Macau’s gaming operators appear poised to navigate these obstacles with resilience and adaptability.

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Wynn Resorts, the global hospitality, entertainment and gaming company, secured a first-time BB- rating from Fitch Ratings, the leading provider of credit ratings, commentary and research for global capital markets. Announcement about the rating and the stable outlook, applicable for the gaming company along with its related companies, came Tuesday.

Per the leading credit research company, Wynn currently holds a strong portfolio of gaming assets and its recent performance points to further near and long-term growth. Fitch acknowledged the strong performance of the gaming and entertainment company in strategic markets, including Macau and Las Vegas.

Besides strong performance, the provider of credit ratings highlighted Wynn’s future growth drivers such as upcoming investments that can boost its revenue in Macau. The company is set to invest some $2.2 billion over the next decade in Macau, strengthening its offering, a move that may boost its gross gaming revenue. On the other hand, Wynn also plans improvements for its Las Vegas properties throughout this year and in 2025, strengthening further its position in Sin City, Fitch confirmed.

Another strong future growth driver is expected to be the company’s project in the United Arab Emirates. Currently, Wynn holds 40% of the ownership of the project, a massive resort development in Ras Al Khaimah that is expected to have a resounding long-term positive impact on the company.

“The ratings reflect the high-quality portfolio of its gaming assets, the expected improvement in Macau’s gaming market in terms of visitation and gaming activity that is expected to drive further improvement in credit metrics, strong results in Las Vegas, and robust liquidity that should fund near-term capital projects and could lead to further debt reduction,“

reads a statement released by Fitch Ratings

The Company Performed Well in Macau, Las Vegas

According to Fitch, Wynn enjoyed a strong performance in Las Vegas, considering the residing impact of the pandemic. Its high reputation in combination with quality properties enabled the company to attract “a more affluent customer,” and charge higher prices without a negative impact on its occupancies, wrote Fitch.

Although speculations suggest that the pent-up demand will weaken, resulting in a decline in gaming revenues, the credit ratings company explained that this could be offset by an increase in the number of convention customers. Fitch did acknowledge the positive impact of sports events and the recent opening of The Sphere on Wynn’s Las Vegas properties.

Across the ocean, in Macau, Fitch acknowledged the strong recovery of Wynn’s gaming revenues. This recovery also impacted positively on the company’s credit rating. Considering that visitation and gaming revenues are still yet to surpass the 2019 levels, Fitch predicted further growth for Wynn in Macau and strong results in the near term.

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