The house edge has moved to Singapore for this casino operator. Why the stock is a buy now

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The house edge has moved to Singapore for this casino operator. Why the stock is a buy now Published Mon, Jun 29 20261:24 PM EDTUpdated 2 Min Ago Justin Zacks WATCH LIVERather than compete in crowded U.S. gambling markets, Las Vegas Sands is betting on Macao and Singapore, where limited competition and rising wealth support stronger growth. With a major expansion underway in Singapore and a unique opportunity to establish a foothold in Texas if gambling laws change, Las Vegas Sands has several potential catalysts for future growth. The market values Las Vegas Sands like its U.S. competitors, potentially underestimating the value of its dominant Asian casino properties. Don't let the name fool you: Despite being headquartered in Nevada, Las Vegas Sands doesn't operate a casino in the United States and is focused instead on Asian markets in Macao and Singapore, where it is the market leader. With the legalization of casino gambling in many states, the expansion of state lotteries, the advent of tribal gaming and the proliferation of sports betting and online gambling, the U.S. has become a tough market to compete for gamblers' dollars. Asia hasn't seen nearly such expansion with gambling being more tightly regulated by governments. Las Vegas Sands has positioned itself in Asia as the industry leader in integrated casino resorts and is poised to benefit from the rise of the middle and upper classes in an area steeped in in-person gaming traditions. While Las Vegas Sands looks to expand its grip on the wealthy Singapore market, there could also be an opportunity to establish itself as a leader in Texas if casino gambling is legalized there — seeing as one lucrative prospect within the saturated U.S. market. Even with its position and competitive moat, the stock trades at valuations similar to its U.S. counterparts that don't have such advantages. Las Vegas roots Las Vegas Sands traces its history to the Sands Hotel and Casino, opened in 1952 as the seventh casino on the famed Vegas strip. During the 1950s, Rat Pack members such Frank Sinatra, Dean Martin and Sammy Davis Jr. performed in the Sands' famous Copa Room. Howard Hughes purchased the Sands for $15 million in 1967. After being sold several times, Las Vegas Sands founder Sheldon Adelson purchased it in 1989. That same year Steve Wynn opened the Mirage, the world's first high-end integrated casino featuring non-gaming attractions such as top-tier restaurants, shopping, a Siegfried and Roy show and a gigantic fake volcano. These amenities helped broaden the Vegas Strip's appeal beyond hard-core gamblers and diversify revenue. If Wynn pioneered the integrated casino resort, Adelson perfected it. The Sands was demolished in 1996 to make way for The Venetian — now the second largest hotel in the world, replete with nods to Venice including an intricate canal with gondola rides that snakes through its Grand Canal Shoppes mall. As the founder of computer industry trade show Comdex, Adelson leveraged his expertise to attract conventioneers with the addition of the Venetian Expo convention hall. Las Vegas Sands still uses this concept to keep its rooms filled outside of the weekends and holidays that are popular with gamblers. In 2004, Las Vegas Sands went public and opened its first casino in Macao. In 2021, it exited the U.S. with the sale of The Venetian. Adelson died the same year. The company is majority owned by Sheldon's widow, Dr. Miriam Adelson and her family. Her son-in-law, Patrick Dumont, is CEO and chairman. Dumont told participants at the Bernstein 42nd Annual Strategic Decisions Conference in New York on May 28 that the company is "very focused on doing the things that we're market leaders in." Macao leadership Via its approximate 75% stake in Sands China Ltd ., Las Vegas Sands holds about a quarter of the market share in Macao based on gross gaming revenue, the largest of the six casino groups allowed to operate in the autonomous region of China. Casino gaming isn't allowed in other parts of China, which means Macao is the only option for many living on the mainland. With origins reaching back 4,000 years to the Xia dynasty, gambling has long been woven into Chinese society. It was particularly fashionable among nobles, officials, and prosperous merchants who viewed gaming as both a leisure activity and a marker of social standing. Today, wealthy VIPs travel to Macao where they bet upwards of $10,000 — and sometimes $100,000 — a hand. Casinos often offer these "whales" perks that include private jet or helicopter transportation, private villas with butler service and dedicated concierges. The VIP market in Macao has been pressured by Chinese government crackdowns, aimed at curbing capital flight and money laundering, that have targeted junket operators t