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We’re projecting over $1.5bn of net gaming revenues at MBS next year.  Rev per visitor should be above Highlands and close to Venetian Macau, while daily visitations will likely be below both.

LVS’s Marina Bay Sands (MBS) resort in Singapore will open in April and we are projecting a little over $1.5bn in gaming revenue in its first full year of operations (2011).  Venetian Macau generates approximately US$96 in gaming revenue per visitor while attracting around 60k visitors per day.  That property is on a run rate of over US$2bn in total annual gaming revenues.  The nearest casino to Singapore is Genting’s Highlands in Malaysia which as a monopoly, produced revenue per visitor of $68 and daily visitation of 53k.

Similar to most Macau casinos, Venetian benefits from an astronomical amount of VIP play, a level which Singapore is unlikely to attain.  Venetian’s Mass revenue per visitor is only $46, less than half of its total.  Despite a much smaller VIP book, MBS could benefit from a long length of stay given the extensive entertainment options.  The average visitor spends close to 4 days in Singapore while the average visitor to Macau spends about 36 hours.

In terms of daily visitation, MBS is unlikely to produce the levels of either Venetian or Highlands.  Singapore locals will be swayed by the S$100 levy.  Moreover, Highlands was operating as a monopoly and now, must compete with MBS and its sister operation, Resorts World, which already opened in Singapore.

Our US$1.5bn gaming revenue estimate for MBS contemplates revenue per visitor of US$90-100 and daily visitation of 40-50k.  The following chart shows the gaming revenue possibilities for MBS. 

MBS SINGAPORE REV PER VISITOR ANALYSIS - MBS