Multiple Casino Operators Express Interest In Pursuing Sands Las Vegas Strip Properties
Las Vegas Sands Corp. stunned the casino market in late October when it announced that it was in talks to sell its casino resorts on the Las Vegas Strip. The properties that were up for grabs included the iconic Sands Expo and Convention Center, Palazzo and Venetian.
Sands Corp which is chaired by billionaire Sheldon Adelson claimed that it was in talks with a few parties but has not finalized anything. Reports suggested that Sands Corp wanted $6 billion for its Las Vegas properties.
Some market analysts questioned the timing of the decision, given that the casino market has been rocked by COVID-19. Sands Corp, has taken a massive hit in revenues as it reported revenues of $1.7 billion in 2020 (so far) when compared to 2019 when revenues hit $13.7 billion.
However, a gaming analyst from Macquarie Group Limited, Chad Beynon said that due to the location of these casino properties and their iconic brand, there should not be a problem with getting an attractive bid from top casino operators.
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Macau’s Galaxy Entertainment Group and Churchill Downs Inc. are two operators who are clearly interested in acquiring these Las Vegas strip properties. Beynon said that it is not just the casino business that is up for sale with these properties but also the convention business since Las Vegas Sands Corp has specialized over the years in building MICE (Meetings, Incentives, Conventions, Exhibitions).
Crown Resorts could also make a bid for these properties given that the Australian casino operator has always wanted to enter Las Vegas. Crown purchased land in Vegas and was in talks to build a casino resort called Alon Las Vegas but the deal fell through and Crown went on to sell the land in 2018. The acquisition could be the perfect way for Crown to quickly boost its Las Vegas presence.
Billionaire Tilman Fertitta who owns the Golden Nugget casino in Las Vegas is also keen on buying these properties. Tilman Fertitta is related (3rd cousin) to the Fertitta brothers who own Station Casinos.
Sands Corp Exiting US Market?
The 87 year old Sheldon Adelson could be planning a move that will see Las Vegas Sands Corp exit the U.S market completely and just concentrate on its Asian operations which bring in the bulk of the revenue. Sands Corp has a huge presence in Macau and also owns the iconic Marina Bay Sands casino resort in Singapore.
Sands Corp has also expressed interest in develop multi-billion dollar casino resorts in other Asian locations including Japan and Vietnam.