Las Vegas Sands Corp. Strengthens With Adelson Investment

Casino companies are among some of the worst companies hit in the current state of Wall Street. Casino stocks have taken a nosedive, along with the rest of the companies that rely on the stock market.

While the government tries to rescue wall Street, many companies are looking for creative ways to stay ahead of the curve in these brutal economic times. The Las Vegas Sands Corp. was the first on Wednesday, to come up with such a plan.

Sheldon Adelson, the chief executive of Las Vegas Sands Corp., invested $475 million in the company. That investment allows Sands to reach their limits so as not to renege on lender covenants.

"While the credit markets are experiencing turbulence...this investment will strengthen our capitalization and liquidity position as we continue to execute our plans," said Adelson in a statement.

Casino companies have never been in this position before. They are one of the most immune industries to any financial crisis' in the United States, but this time, they are experiencing the same stresses as companies in other industries.

The high fuel rates are one of the reasons that casinos have been hurt by the current economy. The other reason is that there are more casinos than there used to be in the country, and that has spread the gambling dollar of Americans around much more than it used to be.

October 2, 2008
Posted By Larry Rutherford
Staff Editor, CasinoGamblingWeb.com
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