LVS keeps Macau promotional spending high in push for premium players

Las Vegas Sands Corp. (LVS) has no immediate plans to curb promotional spending in Macau, even if the strategy weighs on short-term earnings growth, as it seeks to regain market share in an increasingly competitive battle for premium customers, according to Seaport Research Partners.

In a Seaport note following a meeting with LVS management, the firm said the U.S. casino group was prepared to accept a near-term impact on earnings before interest, taxes, depreciation and amortization, or EBITDA, to support a longer-term positioning strategy in the world’s largest casino market.

“To meet Sands’ strategic objective of being the leader in Macau, the company does not plan to let up on spend in order to drive share gains and EBITDA growth – near-term sacrifice for long-term positioning,” Seaport wrote.

The comments point to the intensity of competition among Macau’s six casino concessionaires, which have been adjusting incentives, accommodation, entertainment and other customer offers to attract high-value players following the recovery in visitor arrivals and gaming revenue.

Seaport said that LVS could eventually reduce reinvestment, but not in the near future. “The company may trim reinvestment at a later date,” the brokerage said, “but not in the foreseeable future as competition for premium customers remains intense.”

LVS said in mid-2025 that it would take a more aggressive approach to customer reinvestment in Macau after underperforming the broader market in previous quarters.

Seaport cited Las Vegas Sands as saying, “The high-end customer in Macau may rotate among several properties and this could cause some shifts in market share due to higher concentration in Macau than historically.”

The company also identified signs of softer demand among the ultra-high-end segment following the FIFA World Cup, though it said it was “too early to say” whether the weakness represented a sustained change or a temporary effect.

LVS operates five Macau resorts through its Sands China subsidiary: Sands Macao, The Venetian Macao, The Londoner Macao, The Parisian Macao and The Plaza Macao.