Las Vegas Sands Sells Out Its Property In The USA
Las Vegas Sands is a major casino operator that serves as a great example of gambling businesses worldwide. The Corporation has been officially recognized as the world’s most profitable casino holding specializing in the gambling business. Las Vegas Sands brings colossal profits. On average, before the pandemic, their annual revenue was around 15 billion dollars. No other gaming company in the world has so far been able to achieve such figures.
The company owner, Sheldon Adelson, has recently been awarded the title of one of the world’s wealthiest and most influential people by Forbes.
Departure From The USA Gaming Industry?
As we know, the year 2020 has brought a lot of changes, so the casino operator Las Vegas Sands Corp is now exploring the possibility of selling its flagship casinos in Vegas for approximately $6 billion. This act is likely to mark the departure from the U.S. gaming industry.
The buildings included in the potential sale are the Sands Expo conference center, Venetian, and Palazzo Resorts, claimed by a close associate who chose to remain anonymous. The possible sale of the property in Las Vegas will result in the company focusing entirely on Macao and Singapore. Bloomberg previously reported that Las Vegas Sands had hired a consultant to communicate with potential buyers. However, a representative of the company, Ron Reese, confirmed that the sale negotiations were at an early stage and that nothing had been agreed yet.
In the USA, Adelson owns the Venetian, Palazzo resorts, and the Sands Expo exhibition center. The organization also has about 7,000 hotel rooms, a gigantic casino, and more than 1.5 million square feet of space for business congresses. Las Vegas Sands also owns almost 20 acres east of the Strip, where MSG Sphere is built. It is currently unclear whether the company is seeking a direct sale of its assets or merely interested in a transaction with an investment trust. In the second case, the purpose of the transaction may be a returnable lease.
Consequences Of The COVID-19
The gambling industry, which thrives on air travel and large groups of people in close proximity, is one of the most affected niches in the continuing COVID-19 pandemic. According to Las Vegas Sands, their organization suffered a loss of $1 billion in the second quarter of 2020, and in the third quarter, the total loss was $731 million. At the same time, another Sheldon Adelson’s casino called Marina Bay Sands, located in Singapore, was the only one that did not have losses.
Each market is now recovering from the COVID-19 pandemic. In a somewhat pessimistic view, the recovery will take time. We need a lot of people coming back to Vegas for excursions or entertainment.
Maybe It Is For The Better
Even if Las Vegas Sands sells all its establishments in the USA, it may be a reasonable step for them. In addition to Vegas properties, the company also owns some of the largest casinos in Singapore and Macau. Many analysts say that if they focus on business development in these and in some new cities, then leaving the U.S. market will be a winning idea.
In addition to the mentioned advantages, the company will also be exempt from the constant payment of fines attributed by the U.S.federal authorities. COVID-19 has indeed had many negative consequences for the economy and business. We can just hope that Las Vegas Sands will make the right choice and enter a new phase in its development.
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