Las Vegas Sands (LVS.N), the world’s most valuable gaming company, will open the doors to its multi-billion-dollar Singapore casino on Tuesday, the latest entrant in the fight for Asia’s gambling dollar.

The US$5.5 billion ($7.53 billion) Marina Bay Sands, the world’s No.2 most expensive casino after MGM Mirage’s (MGM.N) CityCenter in Las Vegas, is expected to generate as much US$1 billion in annual profit and surpass its U.S. counterparts in churning out revenue for Las Vegas Sands by next year. 

 

“Gaming penetration in Southeast Asia is extremely low, and local population demographics support an extremely high propensity to game,” said Morgan Stanley analyst Mark Strawn. 

 

Singapore legalised casino gaming in 2005 but not all Singaporeans were happy with the decision, fearing the casinos would attract crime and lead to problem gambling among it citizens. 

 

The city state’s gaming rival, the former Portuguese enclave of Macau, crammed with over 30 casinos and the only place in China where casino gambling is legal, has already eclipsed gambling revenues seen in casino capital Las Vegas. 

 

Asia’s emergence as global casino centre comes as gaming revenues in Las Vegas, Atlantic City and other U.S. centres decline or show little growth, hit by the poor economic climate. 

 

Last week, U.S. gaming tycoon Steve Wynn said, after the opening of the US$600 million Encore in Macau, that he might shift Wynn Resorts’ headquarters from Las Vegas to Macau. He said Wynn Macau (1128.HK) was planning its first mega casino resort in Macau’s Cotai strip.

 

Singapore, with its two mega casinos, is unlikely to overtake Macau but may steal some “high-rollers” from China as operators shift premium business to the city-state where they face an effective tax rate of 12% compared with about 39% in the Chinese territory. 

 

Genting Singapore (GENS.SI) opened the other casino in the city state’s Sentosa island in February this year. 

 

Neighbouring Malaysia’s sole casino, run by Genting Singapore’s parent Genting Bhd (GENT.KL), may also lose business to Singapore’s newer and swankier casinos. 

 

Marina Bay Sands has teamed up with coach operators to offer 130 daily trips from various Malaysian cities to its doorsteps. 

 

“There is going to a negative impact,” said Neo Teng Hwee, head of portfolio management at Bank Julius Baer in Singapore. “Malaysians residing in the southern parts and the more well-heeled will be attracted to the better infrastructure in Singapore.” 

 

 Marina Bay Sands opening, by billionaire CEO and main shareholder, Sheldon Adelson, could also hurt Genting Singapore’s $6.6 billion Resorts World at Sentosa. 

 

“When you walk through Marina Bay Sands, you’ll notice a significant quality difference from the finishing right down to the air quality,” said Sean Monaghan, managing director of AG Leisure Partners. 

 

“Everyone prefers better quality over less quality. There will be a shift of people and it will be noticeable,” said Monaghan, a former casino analyst at Merrill Lynch. 

 

Marina Bay Sands, when completed, will have 2,600 hotel rooms, convention facilities for up to 45,000 delegates, restaurants run by celebrity chefs and an eye-catching cantilevered, 200-metre-high floating garden perched on top of three hotel towers. 

 

Las Vegas Sands originally planned to opened the Singapore casino before Christmas 2009, and needs the facility to be up and running before an international convention of lawyers next week. 

 

Singapore legalised casino gaming in 2005 and said it will grant licenses for two giant casinos to diversify its economy. 

 

Economists said the Sands and Genting casinos will create tens of thousands of jobs in the city-state of 5 million people and boost the GDP growth rate by up to 1 percentage point. 

 

But not all Singaporeans are happy with the advent of casinos, fearing they would attract criminal activity such as money-lending and prostitution. 

 

Eugene Tan, an assistant professor of law at Singapore Management University, said while the government had introduced measures to address problem gambling and combat casino-related crime, the problems could not be eliminated entirely. 

 

“If Singaporeans become conditioned to gambling as a necessary evil, then we may well be on the slippery slope.” 

 

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