Las Vegas Sands doubles down on Asia with $6.25bn sale of US assets
Casino giant offloads The Venetian Resort and Sands Expo and Convention Center as COO Patrick Dumont hints at exploration of online gambling
Las Vegas Sands (LVS) has agreed to sell a huge chunk of its US land-based casino empire to private equity firm Apollo Global Management and VICI Properties for $6.25bn.
The sale, which includes The Venetian Resort Las Vegas and the Sands Expo and Convention Center, was sanctioned to reinvest in lucrative Asian markets and fund a potential foray into online gambling.
The deal was agreed less than two months after the death of LVS founder Sheldon Adelson, who had fiercely opposed expansion into digital gaming while in charge of the business.
“The Venetian changed the face of future casino development and cemented Sheldon’s legacy as one of the most influential people in the history of the gaming and hospitality industry,” said LVS CEO Robert Goldstein.
“As we announce the sale of The Venetian Resort, we pay tribute to Mr Adelson’s legacy while starting a new chapter in this company’s history,” he added.
Interesting collision between this news and the rumors of Sands’ interest in retail casinos in TX and NY, not to mention the rumors of Sands’ looking to jump into online gambling. https://t.co/3GsZTaOuCC
— Chris Grove (@OPReport) March 3, 2021
Goldstein said the company would focus on high-growth opportunities and that Asia remained the “backbone” of the business, revealing that Macau and Singapore were now the “center of attention.”
LVS owns several properties in the former Portuguese colony of Macau, including Sands Macao, as well as the iconic Marina Bay Sands, which is one of two integrated casino resorts in Singapore.
“Our long-held strategy of reinvesting in our Asian operations and returning capital to our shareholders will be enhanced through this transaction,” said LVS COO Patrick Dumont.
Casino gambling in Las Vegas has been majorly impacted by the Covid-19 pandemic, leading to significant financial losses for operators with venues closed and restrictions in place.
The uncertainty on the Las Vegas Strip led to speculation that LVS would look to diversify into digital gambling, which Dumont has now promised to explore.
He said: “As our industry continues to evolve, particularly as it relates to the digital marketplace, we are committed to exploring those possibilities.”
Apollo Global Management, which has invested billions of dollars in gambling companies worldwide, has acquired the operating assets and liabilities of the operator’s Las Vegas business for approximately $1.05bn in cash and $1.2bn in the form of a term loan credit and security agreement.
Meanwhile, VICI Properties has purchased the real estate assets of The Venetian for approximately $4bn in cash.
The closing of transactions is still subject to regulatory approval.