Casino & Gaming

MarketLine Industry Profile
Global Casinos &

Gaming
January 2018
Reference Code: 0199-2019
Publication Date: January 2018
WWW.MARKETLINE.COM
MARKETLINE. THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED
Global - Casinos & Gaming 0199 - 2019 - 2016
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EXECUTIVE SUMMARY
Market value
The global casinos & gaming sector grew by 1.6% in 2016 to reach a value of $409,984.3 million.
Market value forecast

In 2021, the global casinos & gaming sector is forecast to have a value of $472,225.5 million, an increase of 15.2% since
2016.
Category segmentation
Lotteries is the largest segment of the global casinos & gaming sector, accounting for 35.4% of the sector's total value.
Geography segmentation
Asia-Pacific accounts for 47.7% of the global casinos & gaming sector value.
Market rivalry
The casinos and gaming sector is populated by a wide range of types of player. Players tend to specialize in a segment
and consequently, rivalry is assessed as moderate.

TABLE OF CONTENTS
Executive Summary ....................................................................................................................................................... 2
Market value............................................................................................................................................................... 2
Market value forecast ................................................................................................................................................. 2
Category segmentation .............................................................................................................................................. 2
Geography segmentation ........................................................................................................................................... 2
Market rivalry.............................................................................................................................................................. 2
Market Overview ............................................................................................................................................................ 7
Market definition ......................................................................................................................................................... 7
Market analysis .......................................................................................................................................................... 7
Market Data ................................................................................................................................................................... 9
Market value............................................................................................................................................................... 9
Market Segmentation ................................................................................................................................................... 10
Category segmentation ............................................................................................................................................ 10
Geography segmentation ......................................................................................................................................... 11
Market Outlook ............................................................................................................................................................. 12
Market value forecast ............................................................................................................................................... 12
Five Forces Analysis .................................................................................................................................................... 13
Summary .................................................................................................................................................................. 13
Buyer power ............................................................................................................................................................. 14
Supplier power ......................................................................................................................................................... 15
New entrants ............................................................................................................................................................ 16
Threat of substitutes................................................................................................................................................. 18
Degree of rivalry ....................................................................................................................................................... 19
Leading Companies ..................................................................................................................................................... 20
Caesars Entertainment Corporation ......................................................................................................................... 20
Las Vegas Sands Corp. ........................................................................................................................................... 23
MGM Resorts International ...................................................................................................................................... 27
SJM Holdings Limited .............................................................................................................................................. 30
Methodology................................................................................................................................................................. 33
Industry associations ................................................................................................................................................ 34
Related MarketLine research ................................................................................................................................... 34
Appendix ...................................................................................................................................................................... 35

LIST OF TABLES
Table 1: Global casinos & gaming sector value: $ million, 2012–16 .............................................................................. 9
Table 2: Global casinos & gaming sector category segmentation: $ million, 2016 ....................................................... 10
Table 3: Global casinos & gaming sector geography segmentation: $ million, 2016.................................................... 11
Table 4: Global casinos & gaming sector value forecast: $ million, 2016–21 ............................................................... 12
Table 5: Caesars Entertainment Corporation: key facts ............................................................................................... 20
Table 6: Caesars Entertainment Corporation: key financials ($) .................................................................................. 21
Table 7: Caesars Entertainment Corporation: key financial ratios................................................................................ 21
Table 8: Las Vegas Sands Corp.: key facts ................................................................................................................. 23
Table 9: Las Vegas Sands Corp.: key financials ($)..................................................................................................... 24
Table 10: Las Vegas Sands Corp.: key financial ratios ................................................................................................ 25
Table 11: MGM Resorts International: key facts .......................................................................................................... 27
Table 12: MGM Resorts International: key financials ($) .............................................................................................. 28
Table 13: MGM Resorts International: key financial ratios ........................................................................................... 28
Table 14: SJM Holdings Limited: key facts .................................................................................................................. 30
Table 15: SJM Holdings Limited: key financials ($) ...................................................................................................... 31
Table 16: SJM Holdings Limited: key financials (HK$) ................................................................................................. 31
Table 17: SJM Holdings Limited: key financial ratios ................................................................................................... 31

LIST OF FIGURES
Figure 1: Global casinos & gaming sector value: $ million, 2012–16 ............................................................................. 9
Figure 2: Global casinos & gaming sector category segmentation: % share, by value, 2016 ...................................... 10
Figure 3: Global casinos & gaming sector geography segmentation: % share, by value, 2016 ................................... 11
Figure 4: Global casinos & gaming sector value forecast: $ million, 2016–21 ............................................................. 12
Figure 5: Forces driving competition in the global casinos & gaming sector, 2016 ...................................................... 13
Figure 6: Drivers of buyer power in the global casinos & gaming sector, 2016 ............................................................ 14
Figure 7: Drivers of supplier power in the global casinos & gaming sector, 2016 ........................................................ 15
Figure 8: Factors influencing the likelihood of new entrants in the global casinos & gaming sector, 2016................... 16
Figure 9: Factors influencing the threat of substitutes in the global casinos & gaming sector, 2016 ............................ 18
Figure 10: Drivers of degree of rivalry in the global casinos & gaming sector, 2016 .................................................... 19
Figure 11: Caesars Entertainment Corporation: revenues & profitability ...................................................................... 22
Figure 12: Caesars Entertainment Corporation: assets & liabilities .............................................................................. 22
Figure 13: Las Vegas Sands Corp.: revenues & profitability ........................................................................................ 25
Figure 14: Las Vegas Sands Corp.: assets & liabilities ................................................................................................ 26
Figure 15: MGM Resorts International: revenues & profitability ................................................................................... 28
Figure 16: MGM Resorts International: assets & liabilities ........................................................................................... 29
Figure 17: SJM Holdings Limited: revenues & profitability ........................................................................................... 32
Figure 18: SJM Holdings Limited: assets & liabilities ................................................................................................... 32

MARKET OVERVIEW
Market definition
The casinos and gaming market consists of all forms of betting and gaming. All values are stated in terms of gross
gaming win. This is the total amount waged by customers minus the total amount paid out to customers as winnings, but
before the payment of any applicable taxes, disbursements to charitable or other causes by games established for those
purposes, or other expenses.
The casinos segment covers all gambling activities carried out within casino establishments, such as card games,
roulette, and slot machines located in casinos; tips and admission fees are included, but additional revenues such as
sales of food, drink, and accommodation are excluded.
The lotteries segment covers all state, private, and charitable lotteries, and includes traditional draws, scratchcard
games, and similar products offered by lottery operators.
The sports betting and related segment covers gambling on the outcome of horse races, football matches, and other
events, and includes gambling services offered by bookmakers and also pari-mutuel/totalisator operators.
The other segment covers bingo, slot machines located outside casinos, pachinko, etc. In North America, so-called
'Indian casinos' are covered in this segment, not the casino segment.
Online casino and gaming activity, with the exception of online purchases of lottery entry, is not included. Recreation-
only slot machines that do not pay out any form of prize are excluded.
The report only includes gaming activities that are legal in the country where they are offered.
All currency conversions were calculated using constant average annual 2016 exchange rates.
For the purposes of this report, the global market consists of North America, South America, Europe, Asia-Pacific, Middle
East, South Africa and Nigeria.
North America consists of Canada, Mexico, and the United States.
South America comprises Argentina, Brazil, Chile, Colombia, and Peru.
Europe comprises Austria, Belgium, the Czech Republic, Denmark, Finland, France, Germany, Greece, Ireland, Italy,
Netherlands, Norway, Poland, Portugal, Russia, Spain, Sweden, Switzerland, Turkey, and the United Kingdom.
Scandinavia comprises Denmark, Finland, Norway, and Sweden.
Asia-Pacific comprises Australia, China, Hong Kong, India, Indonesia, Kazakhstan, Japan, Malaysia, New Zealand,
Pakistan, Philippines, Singapore, South Korea, Taiwan, Thailand, and Vietnam.
Middle East comprises Egypt, Israel, Saudi Arabia, and United Arab Emirates.
Market analysis
The global casinos and gaming sector only experienced decline in 2015 due to the economy having a negative impact in
certain countries, however the sector will recover and continue to grow over the next five years.
The global casinos and gaming sector had total gross gaming win of $409,984.3m in 2016, representing a compound
annual growth rate (CAGR) of 0.6% between 2012 and 2016. In comparison, the Asia-Pacific sector increased with a
CAGR of 1%, and the US sector declined with a compound annual rate of change (CARC) of -0.3%, over the same
period, to reach respective values of $195,680.6m and $103,554.0m in 2016.
Asia-Pacific has the biggest casinos and gaming sector globally, however the Middle East experienced the most growth
over the last five years. This only slightly offset the decline which Europe and the US experienced due to the poor
economy.

The lotteries segment was the sector's most lucrative in 2016, with total gross gaming win of $145,113.3m, equivalent to
35.4% of the sector's overall value. The casinos segment contributed gross gaming win of $133,337.4m in 2016,
equating to 32.5% of the sector's aggregate value.
Lotteries are the most lucrative because, while the legality of casinos can vary between region and country, lotteries are
typically quite common and usually state controlled. These prizes also contribute to the general economy of each
country.
The performance of the sector is forecast to accelerate, with an anticipated CAGR of 2.9% for the five-year period 2016 -
2021, which is expected to drive the sector to a value of $472,225.5m by the end of 2021. Comparatively, the Asia-
Pacific and US sectors will grow with CAGRs of 3.9% and 1.1% respectively, over the same period, to reach respective
values of $237,155.5m and $109,167.9m in 2021.

MARKET DATA
Market value
The global casinos & gaming sector grew by 1.6% in 2016 to reach a value of $409,984.3 million.
The compound annual growth rate of the sector in the period 2012–16 was 0.6%.
Table 1: Global casinos & gaming sector value: $ million, 2012–16
Year million % Growth

2012 400,754.9
2013 408,099.2 1.8%
2014 416,665.5 2.1%
2015 403,516.6 (3.2%)
2016 409,984.3 1.6%
CAGR: 2012–16 0.6%
SOURCE: MARKETLINE MARKETLINE
Figure 1: Global casinos & gaming sector value: $ million, 2012–16

MARKET SEGMENTATION
Category segmentation
Lotteries is the largest segment of the global casinos & gaming sector, accounting for 35.4% of the sector's total value.
The Casinos segment accounts for a further 32.5% of the sector.
Table 2: Global casinos & gaming sector category segmentation: $ million, 2016
Category 2016 %
Lotteries 145,113.3 35.4%
Casinos 133,337.4 32.5%
Sports betting and related 34,331.9 8.4%
Other 97,201.6 23.7%
Total 409,984.2 100%
Figure 2: Global casinos & gaming sector category segmentation: % share, by value, 2016

Geography segmentation
Asia-Pacific accounts for 47.7% of the global casinos & gaming sector value.
United States accounts for a further 25.3% of the global sector.
Table 3: Global casinos & gaming sector geography segmentation: $ million, 2016
Geography 2016 %
Asia-Pacific 195,680.6 47.7
United States 103,554.0 25.3
Europe 83,248.5 20.3
Middle East 815.1 0.2
Rest of the World 26,686.1 6.5
Total 409,984.3 100%
Figure 3: Global casinos & gaming sector geography segmentation: % share, by value, 2016

MARKET OUTLOOK
Market value forecast
In 2021, the global casinos & gaming sector is forecast to have a value of $472,225.5 million, an increase of 15.2% since
2016.
The compound annual growth rate of the sector in the period 2016–21 is predicted to be 2.9%.
Table 4: Global casinos & gaming sector value forecast: $ million, 2016–21
Year million % Growth

2016 409,984.3 1.6%
2017 417,438.5 1.8%
2018 427,644.9 2.4%
2019 440,044.3 2.9%
2020 454,750.2 3.3%
2021 472,225.5 3.8%
CAGR: 2016–21 2.9%
Figure 4: Global casinos & gaming sector value forecast: $ million, 2016–21

FIVE FORCES ANALYSIS
The casinos & gaming market will be analyzed taking operators of casinos, gaming machines, lotteries, and betting
(commercial, state-run and charitable operations) as players. The key buyers will be taken as individual customers, and
companies providing gaming machines, equipment, services, and real estate as the key suppliers.
Summary
Figure 5: Forces driving competition in the global casinos & gaming sector, 2016
The casinos and gaming sector is populated by a wide range of types of player. Players tend to specialize in a segment
and consequently, rivalry is assessed as moderate.
The casinos and gaming sector is subject to huge regional variations in regulation levels, with some countries outlawing
it completely and others imposing very little regulation.
The existence of addictive forms of gambling behavior indicates that some consumers are not making rational economic
decisions and can become dependent on gambling in their everyday lives. Such patterns are evident in many regions
and weaken buyer power accordingly.
With regards to suppliers, size matters and a handful of suppliers dominate. Participants benefit from regulatory barriers
to entry, which make it difficult for new players to enter the market and gain market share. National operators of gambling
facilities are protected in some countries by restrictions placed upon international operators who wish to enter the sector;
thus limiting rivalry somewhat.
Almost any leisure activity can act as a substitute for casinos and gaming. However, the rapid growth of online gaming in
certain countries represents a significant threat to the traditional sector. As a result, the threat from substitutes is
assessed as very strong.

Buyer power
Figure 6: Drivers of buyer power in the global casinos & gaming sector, 2016
The popularity of various gambling activities across the world means the number of buyers is large and, in many regions,
still growing.
For instance, Singapore, which dropped its 40 year-long gambling ban in 2005, sees casinos as an important part of a
broader effort to promote itself as a getaway for tourists, with the first two casinos in the country opening in 2010. In
2006, Macau overtook the Las Vegas Strip in terms of gaming revenues. In 2015, Macau's casino market generated over
$28bn in gross gaming win; almost five times the total from the Las Vegas Strip. This indicates the increasing global
appeal of this sector.
The wide variety of potential customers weakens buyer power in this sector considerably. Activities within this sector are
non-essential leisure activities, consequently it would be expected that such activities are not vital to buyers. However,
this issue is complicated by gambling addictions. The existence of addictive gambling behavior indicates that some
consumers are not making rational economic decisions and can become dependent on gambling in their everyday lives.
Such patterns are evident in many regions and weaken buyer power accordingly.
Market players can choose from a wide range of gaming activities such as lotteries, gaming machines, poker, blackjack,
and sports betting etc. There are also several different methods of distribution (online, outlets, casinos etc.), and different
win margins. Loyalty to a particular market player is unlikely to be high; although compulsory membership in many
casinos can ensure that customers are retained. Buyer power is strengthened as forwards integration is very unlikely in
this sector.
Switching costs for consumers vary according to the type of gambling. For example, many casinos require annual
membership fees; thus constituting a switching cost should a consumer change to a different casino before the annual
membership expires. Generally switching costs remain minimal, particularly in the case of betting shops. This
strengthens buyer power.
Overall, there is a moderate degree of buyer power within the global casinos and gaming sector.

Supplier power
Figure 7: Drivers of supplier power in the global casinos & gaming sector, 2016
Suppliers to the casino and gaming sector vary according to the player. Gaming machines and related equipment and
services are vital for some players. Operators of Pachinko parlors, one of the largest forms of gambling in Japan, of
course require Pachinko machines from manufacturers and suppliers.
Companies that supply equipment, machinery or services are integral to the success and proper functioning of market
players. Some of the large supply companies may offer equipment that has high consumer demand, such as certain
gaming machines.
Larger suppliers diversify geographically to guard against over-dependence on just one particular market; however, most
manufacturers of gaming machines tend to specialize in this sector. This is evident with companies such as Caesers
Entertainment Corporations which dominates North America. Since the gaming industry is highly important to their
survival, this weakens supplier power. Overall, supplier power is assessed as moderate.

New entrants
Figure 8: Factors influencing the likelihood of new entrants in the global casinos & gaming sector,
2016
The casinos and gaming sector operates differently from country to country, according to regulatory and legislative
barriers, which often reflect the cultural acceptance of gambling in a particular country.
Historically, gambling has not been as widely accepted in Europe as in the US. Tax levies on market players in many
European countries are higher than in other parts of the world; consequently, many players may wish to operate in other
geographies or operate online rather than land-based. In Denmark, casinos and gaming halls are subject to a tax which
rises up to 75.0%. However, online operators in the country are only taxed at 20% of gambling revenue. Casino tax in
Germany is amongst the highest in Europe and varies by state. For example, in Hamburg casino tax is set at 90% of
gross gaming win. In comparison, in Nevada in the US the tax rate is graduated, starting at 6.75%. While in Michigan the
tax rate is set at 19%.
In addition, there have been declines in revenue in some regions due to smoking bans, and a growing number of
competitors, such as slot arcades. Furthermore, the growth of online gambling in many countries is having an impact on
land-based casinos and gaming. Declines in some regions can also be attributed to many countries liberalizing their
gaming laws in combination with open borders and increased cross-border gambling. In Eastern Europe, casinos
positioned along the border with Western Europe, such as those in the Czech Republic and Poland, benefit from the
lower cost of local staff with “Western” money flowing across borders.
The situation looks different within the Asia-Pacific sectors. For example, gambling in mainland China is illegal. It is only
in recent years that many ordinary Chinese people have been permitted to visit Macau, where gambling is legal. As
such, the area is booming and is often described as ‘Asia’s Las Vegas.’ In mainland China, the lottery constitutes a
lucrative form of government-sanctioned gaming.
Though legislation has been passed to legalize casinos in Japan, as the government has identified it as a potentially
lucrative source of tax and tourism revenue, this is yet to come into play. The only gambling activities currently allowed
are horse racing, pachinko parlors, and state lotteries. At present, pachinko (a pinball game) is a substitute for gambling
in casinos. This game skirts Japan’s gambling ban because players exchange prizes for cash outside pachinko parlors.

Entering the casino sector in India may also be hampered as it is regulated at a state level. Currently, only Goa, Sikkim,
and Daman allow casinos. Furthermore, foreign investment in the casinos and gaming sector in India is banned. Other
than lotteries, legal gambling in India is limited to betting on horse racing. Singapore lifted a 40-year ban on casinos in
2005. The Marina Bay Sands casino opened in 2010, along with Genting’s Resorts World Casino. Russia banned
casinos in 2010 but has since set up five integrated gaming zones across the nation.
A new company wishing to enter the casinos and gaming sector would require fairly large amounts of capital to establish
a casino, betting shop or gaming hall, employ staff, and acquire gaming equipment. However, the willingness of
customers to switch from one gaming company to another, coupled with easy access to suppliers, are conducive to the
entry of new players. The likelihood of new entrants remains moderate overall.

Threat of substitutes
Figure 9: Factors influencing the threat of substitutes in the global casinos & gaming sector, 2016
For the casinos and gaming sector as a whole, almost any leisure activity can act as a substitute, which can be taken up
with minimal switching costs and may also be cheaper than gambling for consumers.
Aside from cost advantages, some customers may value social aspects of using non-gambling forms of gaming facilities.
For those wishing to engage in an activity which offers the possibility of winning money, online gambling is an option.
Online gambling benefits from the development of new technology outpacing laws and regulations, with online gambling
arguably being considered legal as there is no law in place to say otherwise. This makes it currently a strong substitute.
The threat of substitutes in this sector is very strong.

Degree of rivalry
Figure 10: Drivers of degree of rivalry in the global casinos & gaming sector, 2016
Generally, the casinos and gaming sector within the global market remains fragmented. However, in some countries it is
dominated by a few large entities in specific segments, such as horse race betting, or state-owned lottery monopolies.
Additionally, high fixed costs and exit barriers (as many of the major tangible assets are highly specific to their industry,
and thus harder to divest) make competition even stronger.
Modest growth in the global casinos and gaming sector may help to alleviate rivalry; however, the high rates of taxation
(particularly in Europe) mean that it is more difficult to stay profitable. The health of the casinos and gaming sector varies
hugely by country with some countries, such as Mexico, seeing strong market growth and good future potential; while
others are declining or stagnating.
For many players, gaming is their sole or principal activity; so it is vital that they maintain their gaming revenues. Some
companies, however, have a more diverse offering; which weakens rivalry somewhat. For example, casinos may be
incorporated into a more general leisure facility, such as a hotel. Some state lotteries are single-state while others have
multi-state range. Multi-state lotteries generally have larger jackpots due to the greater number of tickets sold.
Many players have the ability to differentiate their offerings through additional services, such as entertainment (concerts,
special events), reward programs, tournaments, or non-gaming facilities (restaurants, arcades, spas).
Cultural acceptance and gaming formats differ in particular countries. In the US, casinos and gaming machines are the
prevalent gambling formats, with sports betting limited to just four states, while in Japan, pachinko machines dominate
and casino gambling is yet to come to fruition. In Europe, lotteries remain the dominant revenue source for the industry.
These differing gambling formats equate to different degrees of rivalry.
Overall, rivalry within this sector is assessed as moderate.

LEADING COMPANIES
Caesars Entertainment Corporation
Table 5: Caesars Entertainment Corporation: key facts
Head office: One Caesars Palace Drive, Las Vegas, Nevada, USA
Telephone: 1 702 4076000
Website: www.caesarscorporate.com
Financial year-end: December
Ticker: CZR
Stock exchange: NASDAQ
SOURCE: COMPANY WEBSITE MARKETLINE
Caesars is one of the world’s most geographically diversified casino-entertainment companies. The company provides
gaming offerings, food and beverage outlets, hotel and convention space, and non-gaming entertainment options. It also
operates an online gaming business that provides social and mobile offerings and real money games in some markets.
The company views each casino property and Caesars Interactive Entertainment (CIE) as operating segments and
aggregates all such casino properties and CIE into three* reportable segments. These reportable segments include
Caesars Entertainment Resort Properties (CERP), Caesars Growth Partners Casino Properties and Developments (CGP
Casinos), and CIE. All the segments of Caesars generate revenues through five business operations: casino
entertainment, food and beverage, rooms and hotel, interactive entertainment, and other business operations.
Casino entertainment operations include more than 14,000 slot machines and 1,200 table games. It also includes other
games such as keno, poker, and race and sports books.
Food and beverage operations include more than 50 buffets, restaurants, bars, nightclubs, and lounges located
throughout its casinos. The business also comprises banquets and room service. Most of the company’s properties
consist of various dining options, which range from upscale dining experiences to moderately-priced restaurants and
buffets.
Rooms and hotel operations provide hotel stays at Caesars’ casino properties and at more than 23,000 guest rooms and
suites.
Interactive entertainment operations include operation of online games business providing social games on Facebook
and other social media websites and mobile application platforms that utilize virtual currency and certain real money
gaming. This business is majorly concentrated in Nevada and New Jersey.
Other business operations include retail and entertainment offerings in the company's casino facilities and The LINQ
promenade. Retail stores at Caesars’ casinos offer a wide range of products spanning high-end brands and accessories
to souvenirs and decorative items. The LINQ promenade is an open-air dining, entertainment, and retail development
located between The LINQ Hotel and the Flamingo Las Vegas. The company’s entertainment options include concerts,
comedy shows, as well as variety acts featuring various well-known artists and entertainers. Entertainment options also
include The High Roller and Caesars’ 550-foot observation wheel at The LINQ promenade.
Key Metrics
The company recorded revenues of $3,877 million in the fiscal year ending December 2016, a decrease of 1.3%
compared to fiscal 2015. Its net loss was $3,569 million in fiscal 2016, compared to a net income of $5,920 million in the
preceding year.

Table 6: Caesars Entertainment Corporation: key financials ($)
million 2012 2013 2014 2015 2016

Revenues 8,186.0 8,220.0 7,967.0 3,929.0 3,877.0
Net income (loss) (1,497.5) (2,948.2) (2,783.0) 5,920.0 (3,569.0)
Total assets 27,998.1 24,688.9 23,535.0 12,206.0 14,894.0
Total liabilities 28,329.7 26,592.7 28,532.0 11,219.0 18,071.0
Employees 70,000 68,000 68,000 33,000 31,000
SOURCE: COMPANY FILINGS MARKETLINE
Table 7: Caesars Entertainment Corporation: key financial ratios
Ratio 2012 2013 2014 2015 2016

Profit margin (18.3%) (35.9%) (34.9%) 150.7% (92.1%)
Revenue growth (4.5%) 0.4% (3.1%) (50.7%) (1.3%)
Asset growth (1.8%) (11.8%) (4.7%) (48.1%) 22.0%
Liabilities growth 3.2% (6.1%) 7.3% (60.7%) 61.1%
Debt/asset ratio 101.2% 107.7% 121.2% 91.9% 121.3%
Return on assets (5.3%) (11.2%) (11.5%) 33.1% (26.3%)
Revenue per employee $116,943 $120,882 $117,162 $119,061 $125,065
Profit per employee ($21,393) ($43,356) ($40,926) $179,394 ($115,129)

Figure 11: Caesars Entertainment Corporation: revenues & profitability
Figure 12: Caesars Entertainment Corporation: assets & liabilities

Las Vegas Sands Corp.
Table 8: Las Vegas Sands Corp.: key facts
Head office: Room 1A, 3355 Las Vegas Boulevard South, Las Vegas, Nevada, USA
Telephone: 1 702 4141000
Website: www.sands.com
Ticker: LVS
Stock exchange: New York
LVSC is a developer, owner and operator of destination properties. Its properties features premium accommodations,
gaming and entertainment, retail stores, convention and exhibition facilities, celebrity chef restaurants and other facilities.
The company operates casino resorts in the US, Singapore and China regions.
The company classifies its operations into three geographic segments: the US, Macao and Singapore.
The company’s US segment consists of the Venetian Las Vegas, The Palazzo, Sands Bethlehem and the Sands Expo
Center sectors. The company operates The Venetian Las Vegas and The Palazzo sectors as a single integrated resort
and aggregated as Las Vegas Operating Properties. The Venetian Las Vegas is a four-star resort and convention
destination center. It has 4,028 suites, 35-story three-winged tower above the casino and the adjoining 1,013-suite, 12-
story Venezia tower. It also operates with over 120,000-square-foot of gaming space including 110 table games and
1,250 slot machines. It offers various amenities and facilities including a Paiza Club, restaurants and bars, night clubs,
wedding packages, indoor and outdoor games, entertainment activities, theaters and a Canyon Ranch SpaClub. The
Palazzo is connected to The Venetian Las Vegas and Sands Expo Center. It is 50-storey luxury hotel tower, with 3,064
suites, and has Canyon Ranch SpaClub and a Paiza Club. The Palazzo’s casino consists of over 105,000-square-foot of
gaming space including over 130 table games and 1,100 slot machines. The Palazzo has also facilities such as a world-
class theater, restaurants and entertainment activities.
The Sands Expo Center is a trade show and convention facility in the US. It operates a meeting and conference facility
linking the Center to The Venetian Las Vegas and The Palazzo. Together, The Venetian and Palazzo offers exhibition
and meeting facilities to accommodate large-scale multi-media trade shows or events, providing small, mid-size or large
meeting rooms. The company owns and operates the Sands Casino Resort in Bethlehem, gaming, hotel, and retail and
dining complex. It is featured with over 145,000-square-foot of gaming space including over 180 table games and over
3,000 slot machines, a 300-room hotel tower, with an approximate 150,000-square-foot retail facility, The Shoppes, an
arts and cultural center. The company owns 86% interest in the gaming, hotel and entertainment portion of Sands
Bethlehem through the subsidiary, Sands Bethworks Gaming LLC, and 35% in the retail portion through the ownership of
Sands Bethworks Retail LLC.

The Macau’s segment comprises The Venetian Macao, Sands Macao, Four Seasons Macao and Sands Cotai Central.
The company manages the Macau operations through its subsidiary, Sands China Ltd (SCL). The company holds 70.2%
stake in SCL. The Venetian Macao sector is an entertainment destination and operates a convention center and
exhibition venue. It has a 39-storey luxury hotel tower, with more than 2,900 suites, a 1.2 million-square-foot convention
center and meeting room complex, a retail and dining space of one million square feet, a 15,000-seat arena for a wide
range of entertainment and sporting events and a theater with 1,800 seating capacity, featuring ZAIA, an original
production from Cirque Du Soleil. It also owns a casino floor of over 370,000 square feet including a gaming space,
having over 510 table games and 1,700 slot machines. The Sands Macao sector operates in Las Vegas-style casino in
Macao. It is located in China near the Macau-Hong Kong Ferry Terminal. It provides various entertainment and gaming
activities including 933 slot machines or electronic gaming devices, and 274 table games on about 216,000 square-foot
of gaming space. It also operates various restaurants, a Paiza Club, a 289-suite hotel tower, a theater, spa facilities and
other services and amenities. The Four Seasons Macao sector is managed by the Four Seasons Hotels and Resorts. It
has various amenities and facilities including 360 suites and rooms, conference and banquet facilities, a pool and garden
area, and offers several food and beverages. It owns a Plaza Casino, which is operated by the company, featuring
105,000-square-foot of gaming space, with over 140 table games and 150 slot machines, 19 Paiza mansions, and a
258,000-square-foot retail space, connected to The Venetian Macao. It also owns Sands Cotai Central located adjacent
to The Venetian Macao and Four Seasons Macao featuring four hotel towers. Sands Cotai Central consists of 370,000
square feet of gaming space with 505 table games, 1,872 slot machines and 6,400 integrated rooms.
Under Singapore segment, the company operates Marina Bay Sands, a business, leisure and entertainment hotel and
resort. It offers a 160,000-square-foot of gaming space, with close to 610 table games and 2,500 slot machines, a three
55-storey hotel towers, consisting of about 2,600 suites and rooms, the Paiza Club, the Sands SkyPark with 150 meter
infinity swimming pool and several dining options. It also has two theaters, a convention center and meeting room
complex, an entertainment, dining and retail complex, and an art and science museum.
Key Metrics
compared to fiscal 2015. Its net income was $1,670 million in fiscal 2016, compared to a net income of $1,966 million in
the preceding year.
Table 9: Las Vegas Sands Corp.: key financials ($)
million 2012 2013 2014 2015 2016

Revenues 11,684.7 14,494.4 15,426.0 11,688.5 11,410.0
Net income (loss) 1,524.1 2,306.0 2,841.0 1,966.2 1,670.0
Total assets 22,163.7 22,724.3 22,362.0 20,863.5 20,469.0
Employees 46,000 48,500 48,500 46,500 49,000

Table 10: Las Vegas Sands Corp.: key financial ratios
Ratio 2012 2013 2014 2015 2016

Profit margin 13.0% 15.9% 18.4% 16.8% 14.6%
Revenue growth 18.5% 24.0% 6.4% (24.2%) (2.4%)
Asset growth (0.4%) 2.5% (1.6%) (6.7%) (1.9%)
Liabilities growth 4.9% (0.3%) (11.4%) 5.3% 1.7%
Debt/asset ratio 68.1% 66.3% 59.7% 67.3% 69.8%
Return on assets 6.9% 10.3% 12.6% 9.1% 8.1%
Revenue per employee $254,015 $298,854 $318,062 $251,365 $232,857
Profit per employee $33,133 $47,546 $58,577 $42,285 $34,082
Figure 13: Las Vegas Sands Corp.: revenues & profitability

Figure 14: Las Vegas Sands Corp.: assets & liabilities

MGM Resorts International
Table 11: MGM Resorts International: key facts
Head office: 3600 Las Vegas Boulevard South, Las Vegas, Nevada, USA
Telephone: 1 702 6937120
Fax: 1 302 6365454
Website: www.mgmresorts.com
Ticker: MGM
Stock exchange: New York
MGM Resorts International (MGM Resorts) owns and operates casino and non-casino destination resorts primarily in the
US. It offers gaming, hotel, dining, entertainment, retail and other resort amenities.
The company classifies its operations into two reportable segments: Wholly Owned Domestic Resorts (Domestic
Resorts) and MGM China.
Through its Domestic Resorts segment, MGM owns and operates 14 resorts in the US. The segment is further classified
into two sub-categories: resorts in Las Vegas, Nevada and Others. The company owns various resorts in Las Vegas
including Bellagio, MGM Grand Las Vegas (including The Signature), Mandalay Bay, Luxor, The Mirage New York-New
York, Excalibur, Monte Carlo and Circus Circus Las Vegas. The resorts owned by the company in other locations include
MGM Grand Detroit in Detroit, Michigan; Gold Strike Tunica in Tunica, Mississippi; and Beau Rivage in Biloxi,
Mississippi. The company owns Fallen Oak golf course in Saucier, Mississippi, the Shadow Creek golf course in North
Las Vegas, and the Primm Valley Golf Club at the California state line. In FY2016, the Domestic Resorts segment
reported revenues of US$7,055.7 million, accounting for 74.6% of the company’s total revenue.
The company’s MGM China segment operates MGM Macau resort and casino (MGM Macau) and the development of
MGM Cotai on the Cotai Strip in Macau. Its gaming operations at MGM Macau consist of two market divisions: main floor
and high-end (VIP). MGM Macau main floor operations comprise table games and slot machines, provided to the public,
usually consisting of walk-in and day trip visitors. VIP players play mostly in special VIP rooms also known as designated
gaming areas. MGM Cotai is an integrated casino, hotel and entertainment resort with approximately 500 gaming tables
and over 1,500 slots, and around 1,500 hotel rooms. In FY2016, the MGM China segment reported revenues of
US$1,920.5 million, accounting for 20.3% of the company’s total revenue.
Its Corporate and other activities includes investments in unconsolidated affiliates and certain management and other
operations. In FY2016, the Corporate and other activities reported revenues of US$478.9 million, accounting for 5.1% of
the company’s total revenue.
Key Metrics
The company recorded revenues of $9,455 million in the fiscal year ending December 2016, an increase of 2.9%
compared to fiscal 2015. Its net income was $1,101 million in fiscal 2016, compared to a net loss of $448 million in the
preceding year.

Table 12: MGM Resorts International: key financials ($)
million 2012 2013 2014 2015 2016

Revenues 8,803.2 9,445.0 10,848.0 9,190.0 9,455.1
Net income (loss) (1,767.7) (156.6) (150.0) (447.7) 1,101.4
Total assets 26,284.7 26,110.2 26,703.0 25,215.2 28,173.3
Table 13: MGM Resorts International: key financial ratios
Ratio 2012 2013 2014 2015 2016

Profit margin (20.1%) (1.7%) (1.4%) (4.9%) 11.6%
Revenue growth 17.4% 7.3% 14.9% (15.3%) 2.9%
Asset growth (5.3%) (0.7%) 2.3% (5.6%) 11.7%
Liabilities growth 1.6% 0.4% 4.6% 5.4% 9.2%
Debt/asset ratio 69.1% 69.8% 71.4% 79.7% 77.9%
Return on assets (6.5%) (0.6%) (0.6%) (1.7%) 4.1%
Figure 15: MGM Resorts International: revenues & profitability

Figure 16: MGM Resorts International: assets & liabilities

SJM Holdings Limited
Table 14: SJM Holdings Limited: key facts
Suites 3001-3006, 30th Floor, One International Finance Centre, 1

Head office:
Harbour View Street, HKG
Telephone: 852 3960 8000
Fax: 852 3960 8111
Website: www.sjmholdings.com
Ticker: 880
Stock exchange: Hong Kong
SJM Holdings is the holding company of Sociedade de Jogos de Macau, S.A. (SJM) which operates casino games of
fortune and other games of chance in casinos in Macau Special Administrative Region (MSAR) in China. The company
operates in China, the British Virgin Islands and Hong Kong.
The company operates through two segments: gaming operations; and hotel and catering operations.
SJM Holdings' gaming operations segment include VIP table gaming, mass market table gaming and slot machines. The
company's slot machine operations include other electronic gaming machines and the game of Tombola. SJM operates
2,600 slot machines, operating in 17 casinos. The company's flagship casino is Casino Grand Lisboa. The company's
other casinos are Casino Lisboa, Casino Oceanus at Jai Alai and Casino Jai Alai, all located on the Macau Peninsula.
The Casino Lisboa operated a total of 30 VIP gaming tables, 144 mass market gaming tables and 116 slot machines.
Casino Oceanus at Jai Alai operated a total of 185 mass market gaming tables and 411 slot machines.
The company also operates 14 satellite (third party-promoted) casinos, as follows: Casino Babylon, Casino Casa Real,
Casino Diamond, Casino Emperor Palace, Casino Fortuna, Casino Golden Dragon, Casino Grandview, Casino Jimei,
Casino Kam Pek Paradise, Casino Lan Kwai Fong, Casino L’Arc Macau, Casino Macau Jockey Club (converted from
slot hall in 2014), Casino Ponte 16 and Casino Club VIP Legend. The 14 satellite casinos comprise a total of 650 mass
market gaming tables, 220 VIP gaming tables and 1,324 slot machines.
SJM Holdings' hotel and catering operations segment is engaged in hotel, catering and other related operations. The
company's hotels are Grand Lisboa Hotel, which is owned and operated by the company; and Sofitel Macau at Ponte 16
which is 51% owned by the company.
The company's subsidiaries include Brilliant Sky Investments Limited, Brilliant Sky International Limited, Grand Lisboa -
Property Investment Company Limited, Grand Lisboa- Hotel Administration Company Limited, SJM Holdings
Management Services Limited, SJM - Customer Services (HK) Limited, Vast Field Investments Limited and SJM -
Investment Limited.
Key Metrics
compared to fiscal 2015. Its net income was $300 million in fiscal 2016, compared to a net income of $318 million in the
preceding year.

Table 15: SJM Holdings Limited: key financials ($)
$ million 2012 2013 2014 2015 2016

Revenues 6,333.9 6,985.9 10,297.8 6,334.7 5,384.9
Net income (loss) 869.0 992.8 867.1 317.6 299.7
Total assets 4,804.5 5,458.3 5,438.5 4,748.0 4,992.8
Employees 2,100 21,400 21,800 20,800 21,000
Table 16: SJM Holdings Limited: key financials (HK$)
HK$ million 2012 2013 2014 2015 2016

Revenues 49,165.2 54,225.7 79,933.9 49,170.9 41,798.4
Net income (loss) 6,745.4 7,706.0 6,730.7 2,465.0 2,326.5
Total assets 37,293.8 42,368.5 42,215.1 36,854.7 38,755.0
Table 17: SJM Holdings Limited: key financial ratios
Ratio 2012 2013 2014 2015 2016

Profit margin 13.7% 14.2% 8.4% 5.0% 5.6%
Revenue growth 4.6% 10.3% 47.4% (38.5%) (15.0%)
Asset growth 12.9% 13.6% (0.4%) (12.7%) 5.2%
Liabilities growth 10.2% 8.8% (7.7%) (22.5%) 3.5%
Debt/asset ratio 46.6% 44.6% 41.3% 36.7% 36.1%
Return on assets 19.2% 19.3% 15.9% 6.2% 6.2%
Revenue per employee $3,016,151 $326,442 $472,377 $304,551 $256,422
Profit per employee $413,812 $46,391 $39,776 $15,268 $14,272

Figure 17: SJM Holdings Limited: revenues & profitability
Figure 18: SJM Holdings Limited: assets & liabilities

METHODOLOGY
MarketLine Industry Profiles draw on extensive primary and secondary research, all aggregated, analyzed, cross-
checked and presented in a consistent and accessible style.
Review of in-house databases – Created using 250,000+ industry interviews and consumer surveys and supported by
analysis from industry experts using highly complex modeling & forecasting tools, MarketLine’s in-house databases
provide the foundation for all related industry profiles
Preparatory research – We also maintain extensive in-house databases of news, analyst commentary, company
profiles and macroeconomic & demographic information, which enable our researchers to build an accurate market
overview
Definitions – Market definitions are standardized to allow comparison from country to country. The parameters of each
definition are carefully reviewed at the start of the research process to ensure they match the requirements of both the
market and our clients
Extensive secondary research activities ensure we are always fully up-to-date with the latest industry events and
trends
MarketLine aggregates and analyzes a number of secondary information sources, including:
- National/Governmental statistics
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- National and International trade associations
- Broker and analyst reports
- Company Annual Reports
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Modeling & forecasting tools – MarketLine has developed powerful tools that allow quantitative and qualitative data to
be combined with related macroeconomic and demographic drivers to create market models and forecasts, which can
then be refined according to specific competitive, regulatory and demand-related factors
Continuous quality control ensures that our processes and profiles remain focused, accurate and up-to-date

Industry associations
American Gaming Association
1299 Pennsylvania Ave., NW, Suite 1175, Washington, D.C. 20004, USA
Tel.: 1 202 552 2675
Fax: 1 202 552 2676
www.americangaming.org
Asia Pacific Lottery Association (APLA)
74 Walters Drive, Osborne Park, AUS
Tel.: 61 8 9340 5371
Fax: 61 8 9443 1464
www.asiapacific-lotteries.com
European Lotteries and Toto Association
The Secretary-General, Av. Béthusy 36, 1005 Lausanne, CHE
Tel.: 41 21 311 30 25
Fax: 41 21 312 30 11
www.european-lotteries.org
International Association of Gaming Regulators (IAGR)
www.iagr.org
World Lottery Association
Lange Gasse 20, CH-4002 Basel, CHE
Tel.: 41 61 284 1111
Fax: 41 61 284 1350
www.world-lotteries.org
Related MarketLine research

Industry Profile
Casinos & Gaming in the United States
Casinos & Gaming in Asia-Pacific
Casinos & Gaming in Europe
Casinos & Gaming in the United Kingdom

APPENDIX
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MarketLine Industry Profile

Global Casinos &

Reference Code: 0199-2019

Publication Date: January 2018

Global - Casinos & Gaming 0199 - 2019 - 2016

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 1

Market value forecast

Global - Casinos & Gaming 0199 - 2019 - 2016

© MARKETLINE THIS PROFILE IS A LICENSED PRODUCT AND IS NOT TO BE PHOTOCOPIED Page | 2

Market value forecast ................................................................................................................................................. 2

Category segmentation .............................................................................................................................................. 2

Geography segmentation ........................................................................................................................................... 2

Market Overview ............................................................................................................................................................ 7

Market definition ......................................................................................................................................................... 7

Market analysis .......................................................................................................................................................... 7

Market Data ................................................................................................................................................................... 9

Market Segmentation ................................................................................................................................................... 10

Category segmentation ............................................................................................................................................ 10

Geography segmentation ......................................................................................................................................... 11

Market Outlook ............................................................................................................................................................. 12

Market value forecast ............................................................................................................................................... 12

Five Forces Analysis .................................................................................................................................................... 13

Buyer power ............................................................................................................................................................. 14

Supplier power ......................................................................................................................................................... 15

New entrants ............................................................................................................................................................ 16

Degree of rivalry ....................................................................................................................................................... 19

Leading Companies ..................................................................................................................................................... 20

Caesars Entertainment Corporation ......................................................................................................................... 20

Las Vegas Sands Corp. ........................................................................................................................................... 23

MGM Resorts International ...................................................................................................................................... 27

SJM Holdings Limited .............................................................................................................................................. 30

Industry associations ................................................................................................................................................ 34

Related MarketLine research ................................................................................................................................... 34

Global - Casinos & Gaming 0199 - 2019 - 2016

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Table 5: Caesars Entertainment Corporation: key facts ............................................................................................... 20

Table 6: Caesars Entertainment Corporation: key financials ($) .................................................................................. 21

Table 7: Caesars Entertainment Corporation: key financial ratios................................................................................ 21

Table 8: Las Vegas Sands Corp.: key facts ................................................................................................................. 23

Table 9: Las Vegas Sands Corp.: key financials ($)..................................................................................................... 24

Table 11: MGM Resorts International: key facts .......................................................................................................... 27

Table 12: MGM Resorts International: key financials ($) .............................................................................................. 28

Table 13: MGM Resorts International: key financial ratios ........................................................................................... 28

Table 14: SJM Holdings Limited: key facts .................................................................................................................. 30

Table 15: SJM Holdings Limited: key financials ($) ...................................................................................................... 31

Table 16: SJM Holdings Limited: key financials (HK$) ................................................................................................. 31

Table 17: SJM Holdings Limited: key financial ratios ................................................................................................... 31

Global - Casinos & Gaming 0199 - 2019 - 2016

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Figure 11: Caesars Entertainment Corporation: revenues & profitability ...................................................................... 22

Figure 12: Caesars Entertainment Corporation: assets & liabilities .............................................................................. 22

Figure 15: MGM Resorts International: revenues & profitability ................................................................................... 28

Figure 16: MGM Resorts International: assets & liabilities ........................................................................................... 29

Figure 17: SJM Holdings Limited: revenues & profitability ........................................................................................... 32

Figure 18: SJM Holdings Limited: assets & liabilities ................................................................................................... 32

Global - Casinos & Gaming 0199 - 2019 - 2016

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North America consists of Canada, Mexico, and the United States.

South America comprises Argentina, Brazil, Chile, Colombia, and Peru.

Scandinavia comprises Denmark, Finland, Norway, and Sweden.

Global - Casinos & Gaming 0199 - 2019 - 2016

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Global - Casinos & Gaming 0199 - 2019 - 2016

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Casino & Gaming

Casino & Gaming