Sep 23, 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

Chinese gamblers prefer Macau, Singapore casinos

But survey finds that more and more Chinese are going to casinos elsewhere

Trade unionists urge police to drop charges

Forefront of Macau Gaming figures deny aggravated disobedience allegation

Proposed investment in Pacific island increased

Macau company means to put US$300 mln into Northern Marianas casino-resort

Pearl estuary bridge border post to cost MOP71 mln

Consortium comprising three companies awarded contract to build the post
Headlines

Xi Jinping tells Chui Sai On: must do better

President instructs Macau chief executive to improve the work of his govt

Deutsche Bank gloomier about 2014 gaming revenue

Gives warning that new Cotai casinos may fail to spur gaming demand in 2015

Holiday reform tipped to benefit Macau tourism

Research house says annual leave for mainlanders would make visiting easier

Sterne Agee expecting flat gaming revenue in 2014

Stockbroker increases its forecast of shrinkage in September gaming revenue

No Comments

No comments yet.

Sorry, the comment form is closed at this time.

1. Fitch cuts 2014 gaming revenue growth forecast
2. VIP gaming predicted to stay weak for rest of 2014
3. MGM Resorts Intl aims to borrow cheaply in Japan
4. SJM employees to hold another demonstration
5. Ex-employee’s suit against Sands China boss fails
 
 US
DJIA
Nasdaq 4,508.69 -19.001
S&P 500 1,982.77 -11.52
 Europe
DJ Stoxx 50 3,205.93 -51.55
DAX 9,595.03 -154.51
FTSE 100 6,676.08 -97.55
 Asia
Nikkei 225 16,205.90 -115.27
Hang Seng 23,837.07 -118.42
STRAITS TIMES INDEX 3,298.09 +1.52
S&P/ASX 200 5,415.70 +52.700
More >>
  Home The Magazine Subscribe Advertising Events MB Specials Contact Us  
Copyright © Macau Business 2010. All rights reserved.