On September 24th, 2007, the Las Vegas Sands, one of the biggest casino operators in the world, is hoping to get a loan in Singaporean money to fund the building of the first ever gaming house in the U.S. Las Vegas Sands hired 8 banks including Goldman and locals DBS, Oversea-Chinese Banking and United Overseas Bank to get the 5 billion dollars Singapore dollars or about $3.3 billion dollars.
Regulated gaming including casino facilities in the financial markets in Asia will grow by 15.7% annually to $30.3 billion dollars in 2011, according to the study made by PricewaterhouseCoopers. Singapore will compete for customers with Macau. Macau earned 55.9 billion patacas or $7 billion dollars in gambling profits in 2006, replacing the Las Vegas strip as the largest casino industry in the world.
Poh Huay Imm, an equity specialist at Deutsche Bank’s private wealth management group said that the Asia Pacific region will be one of the most important gaming markets all over the world. The Asian region will edge out Europe, the Middle East and Africa as the second largest gambling market in the world aside from the United States.
In its bid to increase visitors and triple profits from tourism by 2015 to $19 billion dollars, Singapore removing a 40 year ban on casino facilities in 2005. There will only be two casinos that will be allowed in Singapore for 10 years.
The second casino facility in Singapore will be constructed on Sentosa Island by Genting International. Lim Kok Boon, the chief investment officer in Singapore at the Fortis Private Banking said that it is still too early to know if the country’s gamble will pay-off.
Casino profit in the Asia Pacific region will grow to $25.5 billion dollars in 2011 from $12.1 billion dollars in 2006, with 79% of the improvement coming from Macau and Singapore. Singapore will receive from $2.2 billion dollars in yearly profits from 2011 when both casino facilities are operational.
Part of the $5 billion loan will be used to pay $1.4 billion one year credit. The $5 billion loan, which will mature in 8 years, will be the biggest ever made in Singapore. The interest on the loan will be between 2%-2.5%. The second quarter revenues at Las Vegas Sands, managed by billionaire Sheldon Adelson, slid down 69 percent as interest payments on money borrowed to expand in the Asia Pacific region grew to $54.4 million.
The Marina Bay resort of Las Vegas Sands, the neighboring business area in Singapore, will showcase three hotel towers that are joined together by a Sky garden, restaurants managed by celebrity chefs Charlie Trotter and Thomas and a science center.