June 2, 2006 – LAS VEGAS (AP) – Five years ago, the casino company that is now Harrah's Entertainment Inc. decided not to bid for a gambling license in the booming Chinese enclave of Macau while its competitors pushed in their chips.
Now, the world's largest casino operator faces the prospect of being shut out of Asia – regarded as the world's most dynamic gambling market – after losing its bid last week to build a new resort in Singapore's Marina Bay.
Wall Street hailed bid winner Las Vegas Sands Corp., a company that earned credibility in the Far East by becoming the first North American casino company to open shop in Macau in May 2004. Las Vegas Sands now boasts nearly double the market capitalization of Harrah's, around $25 billion, primarily because of its Asian growth prospects. Jefferies & Company analyst Lawrence Klatzkin increased his target for Sands' shares by $8 to $88.25 after the Singapore license win. Sands now trades around $71.
