Las Vegas Sands Considering Selling Macau Casino

Las Vegas Sands stock was rising at the end of last week, then came news on Monday that the company might be attempting to sell their main property in Macau. The Sands Macau is up for sale, but Las Vegas Sands would not be completely out of the picture.

According to a report in the South China Morning Post, Sands is considering selling some of the operations under a lease-back arrangement. Other casino construction in Macau, however, could cause potential investors to stay away from a lease-back agreement.

The company has not denied the reports, but they also have not confirmed them. They did acknowledge that there have been investment groups that have inquired about possible opportunities to buy into the property.

While the global economy has taken a toll on Macau casinos, Sands Macau is still turning a profit. The casino has revenue of around $40 million quarterly before taxes. Las Vegas Sands has also been trying to sell shopping malls that they own in Macau, but they have received no substantial offers.

Macau quickly became the gambling capital of the world once they relieved Stanley Ho of the monopoly that he held on the casino industry. Business was booming until the Chinese government put restrictions on the amount of visits their residents could make to Macau from the mainland.

Las Vegas Sands was the first US based casino company to enter the Macau market back in 2004. They have been struggling for financing to complete some other global casino projects, but recently have decided to restart some of those projects.

April 27, 2009
Posted By Terry Goodwin
Staff Editor, CasinoGamblingWeb.com
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