Oct 9, 2015,
  CEO Profile
  Economy & finance
  Greater China
  MB Report
  News in brief
  Pearl River Delta
  Politics & diplomacy
  Sponsored Articles
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

Four projects may miss deadlines, official says

Developers may fail to complete three sets of housing and a hotel in time

Bank accounts reflect devaluation of renminbi

Macau residents keep less in the bank in August, shun mainland currency

Bank accounts reflect devaluation of renminbi

Macau residents keep less in the bank in August, shun mainland currency

National Day golden week visitors increase

Macau gets 938,197 visitors in first six days, 85.2 pct of them mainlanders

Govt mum on accusations against property developer

Professes ignorance of any Macau project embroiled in UN bribery scandal

Social affairs secretary outlines tourism strategy

Alexis Tam soon to propose to lawmakers more museums and ‘themed buildings’

Owners hope dog track has other uses, exec says

SJM Hldgs director says family gatherings at the Canidrome are one idea

Chui cautiously optimistic about Macau’s economy

Chief executive says govt finances stable, predicts fiscal surplus in 2015

No Comments

No comments yet.

Sorry, the comment form is closed at this time.

1. Gaming exec thinks big golden week upturn unlikely
2. Stockbroker sees two more years of gaming slump
3. Neptune Group plunges HK$828 mln into the red
4. Smoking ban forecast only to shave casino revenue
5. Smoking ban forecast only to shave casino revenue
Nasdaq 4,810.79 N/A
S&P 500 2,013.43 N/A
DJ Stoxx 50 3,224.96 N/A
DAX 9,993.07 N/A
FTSE 100 6,374.82 N/A
Nikkei 225 18,236.53 N/A
Hang Seng 22,354.91 N/A
S&P/ASX 200 5,250.40 N/A
More >>
  Home The Magazine Subscribe Advertising Events MB Specials Contact Us  
Copyright © Macau Business 2010. All rights reserved.