Las Vegas Sands Expects Pent Up Demand in Asia To Result in Speedy Recovery

Las Vegas Sands Expects Pent Up Demand in Asia To Result in Speedy Recovery

The demand for online gambling in Asia is strong, but pent-up because of the coronavirus lockdowns. Las Vegas Sands suggested that it is hoping for a comeback and speedy recovery in the region.

Q1 results announced

Las Vegas Sands Corp posted a loss for Q1 2020 owing to the coronavirus pandemic, which kept consumers at home and shuttered their casino operations. As the company hopes for a recovery in Asia, its stock went up 7% in after-hours trading. It is expecting the demand to come back sooner in China, Singapore, and Macau as soon as restrictions are eased.

Las Vegas Sands Expects Pent Up Demand in Asia To Result in Speedy Recovery

Its Asian business could start picking up by late summer or early fall. The company faced similar circumstances during the Severe Acute Respiratory Syndrome (SARS) epidemic as well as Swine Flu. A company executive noted, “We hear anecdotally that people are really frustrated and want to go back to gambling in casinos. The idea of a mask or social distancing or thermometer checks will not be difficult for local Singaporeans or Chinese. They will accept it; they will deal with it.”

What about a US recovery?

The company isn’t expecting the recovery to be quick and doesn’t see it happening soon. In fact, it noted that it could be “drastic and slower” even though there could be some group business demand in August, going all through the fall. The gambling industry depends on large groups of people huddled inside a casino, which goes strictly against the social distancing norms given by the government. It is also connected closely to the air travel industry, which is suffering because of curbs.

For Las Vegas Sands, liquidity helped maintain a strong balance sheet. These funds could be used to find new opportunities in emerging markets. The revenue from its casino business dropped to $1.18 billion marking a 55.8% plunge. According to the Nevada governor, there is no specific date on his mind for reopening nonessential services.

On the other side of the world, Macau also reported a massive 80% fall in gambling revenue. It accounts for 60% of Las Vegas Sands’ revenue. If the company’s estimates hit the right spot and Asia gets a quicker recovery date, then its business could get back to its own feet soon.

The S&P 500 casinos and gaming index is down by 49% this year, showing grim times for the industry. In comparison, the S&P 500 has only dropped by 13.4%.

About sherlock

Sherlock Gomes loves to write and express his views on anything related to Gaming, Gambling, & Casino. He has been covering Gaming for more than two years now.