Las Vegas Sands Not Concerned Over China-US Tensions
Las Vegas Sands Corp. is the biggest casino operator in the world bringing in over $14 billion in revenue each year. The casino operator generates the majority of its revenue from its Sands Macau subsidy which runs multiple operations in Macau.
Like all casino operators, Las Vegas Sands Corp has suffered a significant decline in gross gaming revenues due to the COVID-19 lockdown.
Macau has reported five consecutive months of GGR decline of more than 90 percent which has caused serious concern among Macau casino operators. Macau’s casinos lost a combined $832 million during the third quarter. However, Sands Chairman Sheldon Adelson painted a positive picture for both Sands Corp and Macau’s gambling industry.
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The 87 year old billionaire shared his thought during a third quarter conference call with shareholders and said that he is unwavering in his belief that Macau has enormous potential to turn into one of the top leisure, tourism and business destinations in the world and will recover from the pandemic.
Sands Corp. will be heavily dependent on Macau’s casino industry as market analysts claim that the Las Vegas casino industry will only be able to fully recover from the COVID-19 hit by 2023.
Adelson told investors that Sands Corp has a strong financial position with $2.3 billion in cash reserves, a debt of $13.8 billion and $3.9 available in credit funding. Sheldon Adelson who recently donated $75 million to the Republic Party to assist President Trump to win the upcoming election refused to address political tensions between the United States and China.
He did confirm that Sands Corp remains confident of their business model and will proceed with their $5.5 billion development projects in Singapore and Macau.
Wynn Resorts Concerned About Political Tensions
While Sands Corp preferred not to comment on political tensions between the US and China, Wynn Resorts did not shy away from addressing the situation. The Las Vegas operator openly commented on strained relations between the two countries in its filing with the U.S. Securities and Exchange Commission and the Hong Kong Stock Exchange.
Wynn Resorts said they were concerned that contentious and retaliatory measures could be imposed on businesses operating in the both China and the United States which could hurt their revenues going forward.
Wynn Resorts also has a strong presence in Macau and Las Vegas. The Macau gaming license for both Sands Corp and Wynn Resorts expires in 2022.