Date: Feb. 18, 2010
Title: Macau Helps Sands Cut Losses
Summary: With Las Vegas' lodging and gaming industries struggling worse than ever, Las Vegas Sands Corp. has seen big losses. With new developments in Macau, however, they have been able to offset some of their shortcomings in the American gaming mecca.
Reflection: Macau's success poses some serious problems for Las Vegas' once dominant control over the gaming industry. The article references that Macau's revenues accounted for 3/4 of total revenue for Las Vegas Sands Corp. The Venetian Macau posted operating profit of US$119.7 million in the fourth quarter of 2009, from US$61.3 million a year earlier, the company said.
Numbers like these reinforce the general sentiment that there will be no new building in Las Vegas over the next several years and that all new major gaming entertainment development will shift to Macau. Declining Las Vegas property values may attract more and more investors looking to buy on the cheap. Billionare investor Carl Icahn, for instance, has bought up two casinos (The Fountainbleau in LV and the Tropicana in Atlantic City) within the past two years for pennies on the dollar and is in the process of buying Trump Entertainment Resorts in Atlantic City.
Macau's growing popularity also poses a threat to the international travel that Las Vegas has seen over the years. The super-wealthy, elitist traveler looking to be "wowed" is more likely to seek an experience that is up and coming, not declining in popularity.
Source: The Straits Times
Hyperlink: http://www.straitstimes.com/BreakingNews/Money/Story/STIStory_491862.html
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