Declining revenues and a surge in gaming in Macau mean the Las Vegas Strip lacks the importance it once held for Las Vegas Sands, a gaming market analyses claims.
Forbes says baccarat revenue on the Las Vegas Strip declined by 18 percent through the first 10 months of 2015 and was down by 14 percent this fall, mostly due decreased demand among Chinese gamblers. China recently began discouraging its citizens from visiting Las Vegas and other gambling destinations and cracked down on corruption.
The decreases in Chinese visitors, combined with increased demand from tribal casinos and state-licensed gaming establishments, Forbes doesn’t anticipate any significant change in the current state of Las Vegas Strip gaming.
For international gaming companies, like Las Vegas Sands, that means the Las Vegas Strip no longer is a primary source of revenue and no longer of primary importance. Instead, Macau has become the top market for Las Vegas Sands and others.
Las Vegas Sands generated about $510 million from its Las Vegas Strip operations in 2014, according to Forbes, and it says that amount likely will rise to about $600 million by 2020.
Forbes estimates Las Vegas Sands’ obtains less than 5 percent of its share price from its Venetian and Palazzo operations on the Las Vegas Strip, while its Macau operations produce about 60 percent and Singapore 25 percent of its share price.
Meanwhile, competitor MGM Resorts International derives about 70 percent of its value from its Las Vegas casinos, making the Strip a critical element of its continued success, according to Forbes.
