The newly-appointed Chairman and Chief Executive Officer for prominent casino operator Las Vegas Sands Corporation, Robert Goldstein, has reportedly detailed that his firm may soon be obliged to spend up to $10 billion on further improving its five-strong estate in Macau.
According to a report from Inside Asian Gaming, the executive took over at the helm of the Las Vegas-headquartered firm following the recent death of predecessor Sheldon Adelson and made the pricey revelation as part of a conference call to discuss the casino operator’s fourth-quarter financial results. The source detailed that the boss believes his business could be forced to splash the cash as part of an effort to have its gambling concession for Macau extended beyond its current June of 2022 cut-off.
Extensive estate:
Through its Sands China Limited subordinate and Las Vegas Sands Corporation is responsible for the former Portuguese enclave’s prestigious The Venetian Macao, The Plaza Macao, Sands Macao and The Parisian Macao properties and is soon set to debut the first stage of its $2.2 billion project to transform its giant Sands Cotai Central development into the new-look The Londoner Macao. However, the source explained that Macau has long been eager to mold itself into a more family-orientated tourist destination and could well ask operators seeking to have their casino licenses extended to invest more in non-gaming facilities.
Goldstein reportedly told investors…
“I believe when Macau makes its decision there will be a requirement to invest further in Macau. That’s how Sheldon felt, that we would invest another $5 billion to $10 billion. When the Macanese government makes its decision, I think we will continue upon a rather solid capital investment, which I know is how Sheldon felt, to grab that opportunity with both hands. There is just no place like Macau and we’re not done in Macau. We’re going to be there for many more years.”
Malevolent machinations:
Las Vegas Sands Corporation alongside American compatriots Wynn Resorts Limited and MGM Resorts International are moreover reportedly facing the real prospect of being used as something of a political football in the ongoing trade war between the United States and China. This pessimistic potentiality may well even purportedly see the trio required to spend more cash than their Macau-based rivals in order to retain their concessions to operate in the planet’s most lucrative casino market.
The new boss reportedly declared…
“These are not small investments, they are in the billions of dollars so we have to be prepared for outside investments in our best markets, which are Macau and Singapore for crazy growth. When all of this goes away, I bet one thing that will happen is that the Macau government is going to necessitate that licensees make investments in Macau and we want to be there and be ready.”