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The second quarter proved to be a remarkable period for Marina Bay Sands, with the Singapore resort delivering results that have surprised analysts across the industry. When the numbers came in, the property had generated a record-level EBITDA of US$768 million—a figure that was US$107 million higher than what experts expected based on hold-adjusted calculations.
Side Bets Drive Performance Beyond Projections
According to Seaport Research Partners, this impressive performance boost likely stems from the growing popularity of side bets at the casino. The research firm released its analysis following Wednesday’s second-quarter results from Las Vegas Sands Corp, Marina Bay Sands’ parent company, and the findings paint a clear picture of how gaming innovations are translating to stronger financial outcomes.
Senior analyst Vitaly Umansky explained that on a hold-adjusted basis, the Singapore property’s EBITDA would have been US$661 million, a 47.5 percent increase year-on-year and a 9 percent jump quarter-on-quarter, with a margin of 52.8 percent. However, the actual results exceeded this projection significantly.
“However, we believe theoretical hold was likely higher than the company’s adjustment to 3.7 percent, due to higher propensity for higher casino edge side-bets which have shown increasingly stronger popularity” at Marina Bay Sands, Umansky noted.
Leadership Confidence in Smart Tables and Side Betting
The success of side betting has not gone unnoticed by Las Vegas Sands leadership. During the company’s earnings call, Chairman and CEO Robert Goldstein expressed strong confidence in the direction the industry is taking with these innovations.
“We’re really confident that this new era of ‘smart tables’, side bets – which is increasing hold percentage for everyone, all of our competitors as well – is highly positive for the industry and exciting for the customer,” Goldstein said, referring to table-based technology designed to enhance financial security and integrity for casino table games.
Multibillion-Dollar Reinvestment Program Shows Results
The strong EBITDA performance comes as Marina Bay Sands benefits from substantial ongoing investments in the property. CBRE Equity Research highlighted this connection in their Thursday analysis of the quarter’s results.
“Marina Bay Sands is benefitting from a multibillion-dollar reinvestment programme, with the suite renovations now fully complete and more amenities on the way throughout 2025 and 2026, including an additional lobby, [revamped] SkyPark, and food and beverage/wellness amenities,” the research firm stated.
The investment program is far from over. Analysts John DeCree and Max Marsh from CBRE pointed out that Las Vegas Sands recently broke ground on an even larger expansion project.
“Las Vegas Sands also broke ground last week on a US$8-billion Marina Bay Sands expansion project, which is expected to open in 2031 and will include a new 570-suite luxury hotel tower, a 15,000-seat arena, additional MICE and entertainment amenities, and premium gaming areas,” they added.
Macau Operations Face Different Challenges
While Marina Bay Sands celebrated strong results, the picture is more complex for Las Vegas Sands’ Macau operations through Sands China Ltd. Seaport’s Umansky pointed out that in the Macau market, where the company has pledged to boost EBITDA performance, Sands China had been “playing a bit of catch up” with competitors regarding player incentives and retention spending, known as player reinvestment.
The competitive landscape in Macau has intensified, with Seaport noting that “Reinvestment remains at all-time highs in Macau for premium players.”
“Competition for premium players remains tough… We estimate that player reinvestment may be in the high 30s of percent for the largest premium mass players in Macau,” Umansky explained.
CreditSights offered additional perspective on Sands China’s performance, noting that the subsidiary’s second-quarter total net revenues and EBITDA “eked out marginal year-on-year-growth largely thanks to the newly-renovated Londoner [Macao], though partially offset by its other casinos.“
Looking ahead, analysts Nicholas Chen and David Bussey from CreditSights expect continued improvement but with limitations. “We expect further EBITDA contributions from the continued operational ramp-up of The Londoner in the second half of 2025, though EBITDA margin improvements will likely be limited by the company’s customer reinvestment programme,” they stated.
The contrast between Marina Bay Sands’ strong performance and the more challenging environment in Macau highlights how different markets require different strategies, with side betting proving to be a particularly effective tool in Singapore’s gaming landscape.
Source: GGR Asia
