Sands’ Chinese New Year hongbao
Vegas casino sees 20% rise in Asian high-rollers
The Year of the Dog has started off well for at least one contender of Singapore’s Marina Bay integrated resort (IR). Over the recent Chinese New Year (CNY) celebrations — traditionally a time when Chinese gather to gamble — Las Vegas Sands saw a 20 per cent year-on-year increase in the number of Asian premium players and their families to The Venetian, its flagship casino in Nevada.
The high-rollers are known to splash out up to US$3 million ($4.9 million) per stay, according to Sands’ chairman Sheldon Adelson. In a previous interview with Today, he said there are about 250 premium players in the world, with mainland Chinese being the most prominent.
Sands released the CNY numbers yesterday, adding that The Venetian also hosted over 700 people at its festive private dinner celebration. Nearly 100 guests had arrived in Nevada on private jets owned by Mr Adelson, ranked the 15th richest American with a net worth of US$11.5 billion. In fact, his personal aircraft — a Boeing 767 — ferried guests from Hong Kong to Las Vegas, free of charge.
Such perks and favours are just the tip of the iceberg. Casinos are known to roll out the red carpet, including free stays, butler service and private parties, for their favourite guests. And more high-rollers hail from Asia than anywhere else.
For Sands, over 80 per cent of its high-rollers are Asians mostly from China, Hong Kong, Taiwan and Singapore, ranging from entrepreneurs to real estate professionals, telecom bosses and restaurant owners.
In Singapore, premium gamblers — defined as those who plonk down $100,000 or more at a casino — will be one sought-after market when its two IRs open in 2009.
Its proposed low tax levies will help — the two casino operators need pay only 5 per cent tax on gaming revenue from premium players and 15 per cent from regular gamblers. In comparison, operators pay up to 40 per cent tax in Macau and Australia to the respective governments.
“We’re experiencing a big uplift in repeat visitors from Asia wanting to experience our other properties,” said Mr William Weidner, president and chief operating officer of Sands, which also has a casino in Macau.
Should Sands bag the Marina Bay site, it expects to attract even more repeat visitors, “simply because it’s easier to get to Singapore from other markets in Asia than it is to go to Las Vegas”, he added.
The casino giant — one of four remaining contenders for the Marina Bay site — is betting that its experience with Asian premium players will give it an edge over its rivals, Harrah’s Entertainment, MGM Mirage and Genting International.
This is especially since it has lost a prized local partner in City Developments Ltd (CDL), who controversially pulled out of the race last month, apparently over strict disclosure requirements by the Government.
Despite this snag and doubts over its ability to introduce the Guggenheim Museum to Singapore, experts say Sands still stands a good chance.
“There’s still about two months to go before the casino proposals are submitted. It’s too early in the game to write them off,” said Merrill Lynch gaming analyst Sean Monaghan.
Bidders are due to submit their final proposals — laying down the IR design, responsible gaming elements and tourism appeal — by March 29. The winner will be decided by a high-powered ministerial committee and announced around June.
