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ISSUE 118 - Feb 2014
 
 
The Macau property market is changing. Vote. What is your opinion on likely price fluctuations for the second half of this year?
Decline below -10 percent
Decline from 0 to -10 percent
Growth from 0 to 10 percent
Growth above 10 percent
 
 

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

Q1 retail sales fall 11 pct to MOP16.41 bln

Value of sales of luxuries such as watches, clocks and jewellery declines

I.T.’s annual sales in Macau rise to HK$221.3 mln

Clothes retailer’s operating profit in the city grows 0.3 pct HK$75.6 mln

Tod's registers weak Q1 sales in Macau, Hong Kong

Italian shoemaker laments sharp decreases in shoppers and amount they spend

Mainlanders press demand for more severance pay

Workers laid off from Parisian building site march to central govt office
Headlines

Premium mass market the focus of newest casinos

Gets the lion's share of new tables in the extension of Galaxy Macau resort

Second phase of Galaxy Macau opens tomorrow

Casino-resort extension will have 150 new gaming tables, two new hotels

Junket operators say smoking rooms still in favour

Survey results show almost unanimous opposition to complete ban on smoking

Govt gives casino operator nod for 150 new tables

But omits to say which operator and which casino-resort will get the tables

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