Las Vegas Sands Chairman Sheldon Adelson recently held a conference call with analysts to discuss his company’s second quarter results for 2016. During the conference call, Adelson informed analysts its subsidiary Sands China plans to open its Parisian Macao casino resort on September 13.
The Cotai district has now become home to a number of brand new casino resorts including Wynn Resorts’s new billion dollar resort called the Wynn Palace which is scheduled to open on August 22. Adelson also confirmed that the Parisian Macao will not have a phased rolled out but will open completely to the public in September. The 82 year old billionaire stated that plans for the Parisian Macao were progression as per plan and senior executives for Sands China did not have any concerns over the competition from new casinos opening out in the Cotai district.
In a statement, Adelson said “I have not a shadow of doubt that the Parisian will replicate the success of the Venetian [Macao] as another themed, iconic and must-see integrated resort destination for Macau’s visitors. I am extremely confident that with the opening of the Parisian, we will see growth in Macau.”
The Parisian Macao is yet to find out how many gaming tables the Macau government will approve for the new facility. Gaming analysts believe that the government will follow a similar policy as it did with Melco Crown Entertainment Ltd’s Studio City and Galaxy Entertainment Group Ltd’s Galaxy Macau Phase 2 and allot around 250 gaming tables to the Wynn Palace and the Parisian Macao respectively. Adelson stated that Sands China have a strategy in place if required, to move gaming tables around from its other properties in Macau to the Parisian Macao.
Macau’s government launched an anti-corruption crackdown in 2014 at the behest of Beijing and has targeted its casino industry and VIP gamblers to clean up corruption and money laundering activities. As a result, gross gaming revenue in Macau has declined for 25 consecutive months and GRR in June 2016 dropped by 8.5 percent when compared to June 2015.
Sanford C. Bernstein Ltd, a brokerage firm stated that the success of the Parisian Macao will depend on its ability to be able to leverage its multiple resorts in Macau and optimize its mass market gambling customers. The Parisian Macao has also followed the advice of the Macau government and concentrated on developing non-gaming resources to attract families and generate revenue from entertainment facilities.
The slump in Macau’s gross gaming revenue also impacted the performance of Sands China whose second quarter revenues stood at $1.48 billion in June 2016, a drop of 16.4 percent when compared to June 2015 results.