Las Vegas Sands (Adelson) The driving Force

Posted: June 9, 2011 in Uncategorized

Story by:  Editorial, Professional Ground Decoder

9th June 2011   Thur

Las Vegas Sands Tries Rounding Up Asian Casino Hubs

News reported that Adelson, owner of Las Vegas Sands claims he has been talking to 7 Asian countries to “encourage” them going for the dreams of mega casino resorts, like Macau and Singapore’s achievement.

Apparently he’s in liaison with Taiwan, Japan, Korea and Vietnam and maybe others in Asia, promoting his idea of Asian Casino Hubs.

Based on Professional Ground Decoder expert panelists assessment, the most likely countries in Asia to go for mega casino resorts would be Taiwan and Vietnam.  Though Vietnam has been in a start-stop mode for the last few years due to Global Financial Crisis.  Taiwan is in its 2nd round of legislative council review to clear the ground for off-shore island casino resorts.  At Professional Ground, here’s our baseline assessment:

(1)  That whoever starts another Asian casino hub outside of Macau and Singapore, it is not possible to have the cake and eat it any more. Firstly, gaming tax regime will not be as low as Singapore has imposed. Secondly, there won’t be extremely huge “junket money” channel flowing through, like another China syndrome.

(2)  Among all Asian countries, Taiwan and Japan remain the most idea and popular sites for mega casino hub. It is unlike Vietnam and other low-income societies in which, local expenses and domestic market are not able to sustain the money flow. Philippines is one classic example.

(3)  One country that is currently out of sight is Thailand. Though the current King would not allow opening up of casino gambling, the future remains hopeful, when the King is gone. Thailand will provide the best in reality combined with big dreams. Thailand economy, hospitality and its tourism add up to a formidable competitive force that many Asian countries won’t be able to duplicate.

Regardless, Adelson is the driving force in the Asian casino scene that’s undisputable. He might just pull it off before the sceptics wake up in their daydreaming.

The investment climax will continue to favour Asia in the next couple of years ahead. Liquidity and bond markets will allow such investment (mega casino hubs) to be viewed as most positive in returns. Private & public equity funds and IPOs for casino companies are the main sources of capital supply. Viva ASIA!

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