With the sale of the Venetian/Palazzo, have there been any noticeable changes in the casino and/or hotel?
It’s too early to tell.
The $6.2 billion sale isn't expected to close until October or perhaps even December of this year. In the meantime, Las Vegas Sands management appears to be staying the course in terms of entertainment and other amenities. It would be premature of CEO Rob Goldstein to act like the sale is a done deal. First, Apollo Management, the co-buyer (along with Vici Properties), needs a gaming license or to contract with an outside casino-operations group.
Qualifying for a gaming license isn't a particularly high bar for Apollo to clear, as it was previously a co-owner of Caesars Entertainment, but new ownership generally doesn’t presume to assert itself until the deal closes.
In the meantime, Apollo hasn't made any of its intentions concerning the property known. Despite the company’s name, it doesn’t manage properties; rather, it manages an investment portfolio. Which means it will most likely subcontract the running of the two casinos.
Apollo owns Great Canadian Gaming Corp., so that's one possibility. Problem is, Great Canadian isn't licensed in the U.S. Apollo could also go with another company or even try to cobble together a team of its own from current Venetian/Palazzo executives who'll be made potentially redundant by the sale. (Las Vegas Sands will no longer have any U.S. operations when the sale closes, so we assume that any executives who don't want, or haven't been invited, to move to Macau or Singapore are updating their resumes.)
We’re pretty confident Great Canadian would like the managerial contract, as it’s desperately trying to catch up with its for cash flow nowadays. Canadian casinos started opening only last month (our northern neighbor is lagging the U.S. in its rate of vaccinations).
We don’t anticipate having to wait too much longer to find out who Apollo’s operator of choice will be, as they’ll need to have one in place in time for this fall’s Nevada Gaming Control Board hearings. Vici may also have some say in the matter, but its role is that of landlord of the real estate, while Apollo owns the operations of Venelazzo, so the latter is likelier to be calling the tune.
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