Sands China and Wynn Macau, with existing cashflows in the largest gaming market in the world, trade below 11x 2010e EV/EBITA forecasts. Genting, despite the fall from January’s highs, trades at 14X forecasted EV/ EBITA.
Harrah’s is one of the few major US casino companies without a presence in Macau and its chief executive has indicated he would like to open there. Here’s a way: via buying the 32% stake in Melco Crown Entertainment (traded on Nasdaq) owned by James Packer-controlled Crown. Crown could get an offer for its $US600 million stake — article from an Oz newspaper, from few weeks back.
The price spiked up then before coming off sharply. But it is spiking up again. A better punt than the doomed optimism at any gaming table at Sentosa.
And placing yr bets, like the government on the IRs at Sentosa and Marina?There are other gaming places where it is much easier to be anonymous, launder money and obtain credit. If you are wondering why S’pore is being so toffee-nosed abt these things, do remember that among the leading global financial centres, it has two major public casinos. New Yorkers have to go to Atlantic City to gamble, Hongkies and Tokyoites to Macau. And the gaming clubs in London are private ones.
And remember that the IRs are places where you can gamble, not merely resorts you visit in order to gamble.There are plenty of other places around the world where you can spend your tourist dollar in a similar fashion: Las Vegas and Macau and Monaco.
S’pore’s casinos face tough competition.