Sands sells Las Vegas assets to focus on Asia
One month after the death of founder Sheldon Adelson, Las Vegas Sands sells its Las Vegas properties and operations for a total of $ 6.25 billion. The company will explore opportunities to develop in the online market. Casino giant Las Vegas Sands announced that it has signed an agreement to sell its Las Vegas properties and operations, which includes The Venetian Resort Las Vegas, as well as the Sands Expo and Convention Center.
With this deal, the casino brand would bid farewell to the renowned US gambling venue to effectively focus on Asia, the world's largest gambling hub, Macau. Las Vegas Sands would also shorten its business name to Sands. In an official press release, the company stated that the name change is necessary and would help reorient its focus on faster growing markets like Asia.
The Next Steps of Las Vegas Sands
Las Vegas Sands President and CEO Robert Goldstein said Asia with Macau and Singapore continues to be at the forefront of the company's strategy. The operator will also seek development in the digital market and is exploring opportunities to enter the iGaming and online sports betting market.
Sands Corp. derived just 13 percent of its combined revenue from its US operations in 2019. Most of its revenue came from its casino properties in Macau and its popular Marina Bay Sands casino resort in Singapore.
Sands Corp. said it is a bittersweet moment for the company, as their Las Vegas properties have a lot of history, but that it is the right time for them to withdraw from the US casino market. The company will now seek to further increase its presence in the Asian market. They haven't said anything about whether they would focus again on obtaining a casino license in Japan and building a multi-million dollar casino, which could be Asia's second most lucrative market after Macau.
Apollo Global Management and VICI acquire Las Vegas Empire
Subsidiaries operating the casino business in the United States will become owned by private equity firm Apollo for $ 1.05 billion in cash and $ 1.2 billion in seller financing in the form of a credit and guarantee agreement. VICI Properties will acquire subsidiaries that own The Venetian's real estate assets for about $ 4 billion in cash.
Apollo acquired the Italian B2C operations of International Game Technology for $ 1.15 billion through its financial subsidiary Gamenet Group. In December of last year, it acquired casino operator Great Canadian Gaming in a $ 1.9 billion deal. The company also invested € 500 million in European gaming conglomerate Sakza Group.
VICI is a real estate investment trust that spun off from Caesars in 2017 and has acquired many other casino properties. It owns a large amount of real estate operated by its former parent Caesars, as that business is reformed after its merger with Eldorado Resorts.
Ed Pitoniak, CEO of VICI Properties, said Sheldon Adelson is one of the great American place creators of the last century with the construction of The Venetian Resort and that the property is truly monumental. VICI will be proud to manage Adelson's legacy and his team.
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