Las Vegas Sands (NYSE:LVS) looks keen to establish its presence in Spain which would provide it access to European customers. According to recent reports, company chairman and CEO Sheldon Adelson has decided to spend about $35 billion on this expansion. LVS is looking to develop 12 integrated resorts of 3,000 rooms each, and it intends to build a mini Las Vegas, about half the size of the Las Vegas strip, in Spain for the European customers.  Each resort is expected to cost between $2.5 and $3 billion.
The company is also lobbying in Japan, Korea, Vietnam and Taiwan to build similar properties. It competes with Wynn Resorts (NASDAQ:WYNN), MGM Resorts International (NYSE:MGM), SJM (HKG:0880) and Genting Singapore. LVS’ geographically diversified operation is its biggest strength, contributing approximately 80% to the Trefis valuation for LVS stock.
While it would take LVS 5-10 years to bring its Spanish expansion dreams into reality, we are optimistic about its expansion plans both within the U.S. and internationally. Apart from the U.S., it has a dominating position in Macau and enjoys duopoly in the emerging Singapore gaming market. We think LVS’ Spanish dreams have the potential to bring in additional profits for the casino veteran.