Like Humpty Dumpty, Sheldon Adelson had a big fall, sliding from third place on the Forbes 400 to the #15 spot. With a net worth of $15 billion, Adelson won’t be having to go on the dole anytime soon, but that’s a 46% diminution of a bankroll that was estimated at $28 billion a year ago. That means Adelson’s fortune shrank by $35 million a day, $1.5 million an hour or $25,000 a minute. Time really is expensive!
What happened? Primarily, Las Vegas Sands stock has been on a protracted downward slide. Shares that traded at a high of $144.56 on Oct. 2, 2007, were at $31.83 on Sept. 17, 2008, the day Forbes released its new rankings –- a loss of 78% of their value. Megaresort openings are usually helpful, but the opening of Palazzo, done with minimal fanfare and economic impact, actually accelerated the decline of Sands stock.
Also, Adelson has led with his chin in Macau, where he now has three casinos and is building several more, but where government restrictions on tourism are constricting the market. Lastly, Sands Corp. is heavily exposed in two markets –- Las Vegas and Macau –- while it waits on completion of its Singapore and Bethlehem, Penn., casino resorts.
But Adelson’s not the only casino mogul bearing the brunt of a bad economy. MGM Mirage majority stakeholder Kirk Kerkorian saw the value of his shares shrink from $14 billion to $5 billion. Combine that with a bad bet on Ford and Kerkorian was knocked from seventh place in 2007 to 27th this year. Steve Wynn saw a $3.9 billion net worth go down to $3.4 billion. As Ian Sutton of GamingFloor.com noted, Wynn Resorts has maintained its share price relatively well when compared to other U.S. gaming companies. Still, Wynn went from #86 (just behind George Lucas) to #118.
