Las Vegas Sands Starts Speaking Spanish (LVS, MGM, MPEL, WYNN)

Las Vegas Sands Starts Speaking Spanish (LVS, MGM, MPEL, WYNN): "Adelson is in discussions with Spanish governments to build a Las Vegas Strip style development that would cost somewhere around 10 billion to 15 billion euro ($13.6 billion to $20.4 billion). The development would follow Las Vegas Sands' business model of combining meeting, incentive, convention, and exhibition space (MICE) with a sprawling casino. So far that has worked in Las Vegas, Macau, and Singapore, but a move to Europe is the biggest gamble yet.

A move into Spain isn't the no-brainer that Las Vegas Sands' moves into Macau and Singapore were. Asian gamblers, and VIPs in particular, have an affinity for games of chance, and the close vicinity of billions of people didn't hurt the proposition. There was also help from Wynn Resorts (Nasdaq: WYNN), Melco Crown (Nasdaq: MPEL), and MGM Resorts (NYSE: MGM) building a critical mass in Macau.

Macau and Singapore also hold virtual monopolies on gaming in Asia, but Europe has a slew of competition a train ride away. Germany, Greece, Portugal, and of course Monaco all have casinos that provide competition to Spain.

Then there's the issue of cost versus the possible return on investment. The Spanish development would likely cost more than Las Vegas Sands has spent on the casinos it has opened in Macau and Singapore combined."

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