Apr 18, 2014,
  Analysis
  Business
  CEO Profile
  Economy & finance
  Editorial
  Education
  Features
  Gaming
  Greater China
  MB Report
  MICE
  News in brief
  Opinion
  Pearl River Delta
  Politics & diplomacy
  Property
  Retail
  Sponsored Articles
  Statistics
  Technology
  Tourism
  Transport
ISSUE 118 - Feb 2014
 
 
What are your expectations for the gross gaming revenue growth of Macau’s gaming industry in 2014?
Decline
Growth above 10 percent
Growth from 0 to 10 percent
Stagnation
 
 

Macau Govt reassured Las Vegas Sands’ bankers


Posted: 5/16/2013 5:05:59 PM
Rating:     0% ( votes)
  

The secretary for Economy and Finance Francis Tam Pak Yuen sent a letter to one of Las Vegas Sands’ bankers in 2006 to assure the company that it could operate in Macau autonomously from its Chinese partner, Galaxy Casino S.A., even in the event of termination and extinction of Galaxy Casino’s concession contract.

Venetian Macau S.A., a unit of Las Vegas Sands Corp, is technically a sub-concessionaire of Galaxy Casino S.A. since 2002.

Our sister publication Business Daily has seen a copy of the letter, sent to Bank of Nova Scotia – at the time a lead arranger of project debt for Las Vegas Sands – and signed by Mr Tam.

That assurance was important, because some of the gaming operator’s banking partners – many of them Western companies – were concerned that the company’s Macau rights, technically and officially a sub-concession, could be at risk if the supposedly senior partner Galaxy Casino SA, a local unit of Galaxy Entertainment Group, lost its primary licence.

The letter states that “Venetian Macau S.A. shall be able to exploit games of chance and other games in casino [sic] in Macau autonomously from Galaxy Casino S.A., even in the event of termination and extinction of Galaxy Casino S.A.’s concession contract…”

Business Daily has also learned that some members of the government wanted the facts in Mr Tam’s 2006 assurance letter to be recorded in Macau’s Official Gazette as a matter of public policy.

But it was decided not to do so, reportedly for technical, legal, reasons.

During the second trial of Hong Kong businessman Richard Suen’s lawsuit, which ended early this week, Sands chairman Sheldon Adelson explained to the jury that the impetus for involvement in Macau was driven by the firm’s own management.

But sources have suggested to Business Daily that all the Las Vegas operators interested in Macau were concerned that operating here could have put their Nevada licences at risk.

Sources also said Macau officials liked the quality of The Venetian Las Vegas compared to some of the other casinos around it on the Las Vegas Strip.

They also liked the company’s focus on the conventions business.

In other news developments, Las Vegas Sands will appeal the verdict by a Nevada state court that has awarded Mr Suen US$70 million (MOP560 million) payable by Las Vegas Sands.

Mr Suen claimed that he helped the operator to get a licence to operate casinos in Macau.

Las Vegas Sands is the parent company of Macau-based gaming operator Sands China Ltd.



Other Macau Latest News

Chan Meng Kam linked to Queensland casino bid

Legislator owns 60 pct of a company involved with a bidder for a licence

Macau Cable TV to become city’s second ISP

Govt wishes cable TV, internet, phone companies to be jacks of all trades

Govt hands out MOP28 mln from its green fund in Q1

Receives 300 requests for money for environment-friendly know-how and gear

Recruiter sees 30 pct increase in job seekers

MSS Recruitment says most vacancies posted on its website are in casinos
Headlines

Sands China is casino market leader in early April

Has slightly bigger share of gaming revenue than SJM in first two weeks

Q1 mass-market baccarat revenue MOP28.49 bln

Revenue from mass-market baccarat jumps by 42.3 pct from a year earlier

JP Morgan sees strong Q1 profit growth in Macau

Investment bank attributes growth to more mass-market gaming business

Sands Cotai Central marks second anniversary

Executive says casino-resort to keep reinforcing Macau’s market position

No Comments

No comments yet.

Sorry, the comment form is closed at this time.

1. Goldman Sachs keeps 2014 gaming revenue forecast
2. Philippines tells Okada to put his house in order
3. Broker says casino take below MOP1 bln a day
4. Melco Crown seeks partners for Japanese casinos
5. Casino smoking ban to stay unchanged, says govt
 
 US
DJIA
Nasdaq 4,095.52 +9.291
S&P 500 1,864.85 +2.54
 Europe
DJ Stoxx 50 3,155.81 +16.55
DAX 9,409.71 +91.89
FTSE 100 6,625.25 +41.08
 Asia
Nikkei 225 14,516.27 +98.739
Hang Seng 22,760.24 +64.23
STRAITS TIMES INDEX 3,253.80 +0.60
S&P/ASX 200 5,454.20 +33.900
More >>
  Home The Magazine Subscribe Advertising Events MB Specials Contact Us  
Copyright © Macau Business 2010. All rights reserved.