LVS Gets Another 1-Year Extension for Singapore’s Marina Bay Sands Upgrades

The Las Vegas Sands Corp, the operating entity of Singapore’s Marina Bay Sands, has been granted a 12-month extension to construction upgrades of the Marina Bay Sands casino resort. Given by the Singapore Tourism Board, the extension runs until April 2024 and will be the second time LVS has received such leeway for the start of the 2.0 expansion of Marina Bay Sands (MBS).

A year ago, the hold on constructional progress was due to the pandemic that had rocked the entire global gaming market. However, with another year passed, some industry observers presume that Marina Bay Sands is still reeling from the effects of the COVID-19 pandemic.

MBS Avoids Breach of Its Initial Agreement

MBS’ planned expansion includes a new 1,000-room luxury hotel tower and a 15,000-seater entertainment arena, among other luxurious add-ons. The fourth hotel tower will also have a rooftop attraction featuring a sky pool and an upscale signature restaurant. Furthermore, the entertainment arena will be supplemented with extra facilities like meeting rooms, function rooms, and exhibition halls.

Besides mapping out the construction process of the expansion project, the original agreement which Marina Bay Sands entered with the Singapore Tourism Board in 2019 entailed a few extra provisions. These provisions included certain benefits and concessions that MBS would receive for achieving certain milestones in the expansion project.

Some of the perks outlined in the original agreement included the addition of 1,000 extra gaming machines to the existing 2,500 in operation. Additionally, there is also a clause allowing MBS to acquire additional casino gaming areas at a price determined by the relevant Singapore government authority upon written request.

While the delay will not impact Singapore’s general attractiveness as a tourist hub, it offsets the realistic threat that MBS would have likely risked breaching its contract without another extension. Now that there’s a new extension in place, the latest filing by the Las Vegas Sands stated that the completion deadline has been moved again, to April 8th, 2028.

The original 2019 agreement required that the MBS construction be completed within 8 years. So, the construction window has been reduced by half to 4 years from the initial 8 years. Thus, MBS is expected to pick pace now that period that was gazetted earlier has been cut down significantly. 

MBS Expansion is Part of a Bigger Collabo With RWS

On top of the announced changes to the construction deadline, MBS also hinted at a few adjustments to the planned upgrades but stayed clear of pointing out any specifics. Instead, the company only alluded to “changes to the construction and operation plans.”

Additionally, this extension is part of a broader agreement with the Singapore government that will see a team-up between the Marina Bay Sands and the Resorts World Sentosa (RWS). The duo is to invest a combined amount of up to S$ 9 billion (USD 6.76 billion) into new non-gaming opportunities in the Asian powerhouse.

To complete the symbiotic partnership, the Singapore government has given casino gaming exclusivity to these two gaming giants. No new casinos will be welcomed in Singapore before the end of 2030. Speaking to the Business Times, Singapore’s Tourism Board remained optimistic about the incoming investment into the equally energetic non-gaming sector of its economy, stating that:

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“While the IRs have previously indicated there are potential delays in the completion of their projects, they remain committed to their expansion plans. The IRs have and will continue to enrich Singapore’s tourism offerings. STB will continue to monitor the progress of the developments.”

So, What’s the Reason for This Delay?

While the COVID-19 pandemic is widely assumed to be the reason behind the delays, Marina Bay Sands has yet to disclose why it needs more time to begin construction. For one, the jewel in the LVS crown announced early in 2022 that it would top pre-pandemic revenue by the end of the calendar year, an indication that it was finally gaining stable ground.

True to their projections, the financial results from the tail end of last year painted a rosy picture for MBS, posting a 50% year-on-year increase in revenue in its fourth quarter. In addition, the property’s value closed at $682 million. At the same time, its EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) impressively jumped to $273 million, a 54.2% improvement from the previous year’s figures.

Already, tourists from many parts of the world, including neighboring countries Malaysia and Indonesia, continue to flow into Singapore in large numbers. When the upgrades are done and dusted, Marina Bay Sands expects that the influx of tourists coming in to enjoy their services will increase significantly.