Las Vegas Sands dispatched its international overseer, Rob Goldstein (right) and sidekick Dan Briggs to New York as envoys to Wall Street. As reported by J.P. Morgan‘s Joseph Greff, Sands’ outlook is sanguine, particularly with regard to the Singapore and Macao markets. No untoward credit or liquidity issues are anticipated and Sands Cotai Central (whose exteriors look like something Ralph Engelstad would have built) remains on pace to open by late March next year. GDP in China continues to grow by almost 9% and Sands execs don’t think the real estate bubble on the mainland is “still a lot rosier” than the situation back home. There was a lot of chatter about rolling chip volume, which boils down to an anticipated additional $200 million in cash flow from the Four Seasons Cotai. Singaporean gaming, hotel and retail revenues are said to be increasing across the board.
If Goldstein and Briggs said anything relative to ongoing developments in Spain, Florida and Massachusetts, Greff did not deem it worthy of reportage. After all, investors probably put more stock (pardon the pun) in what is than what might be.
This is no time to be smug about prospects for casino growth overseas. The ongoing turbulence in Egypt could still redound against that country’s gaming industry and there’s worse on the near horzion. Islamic fundamentalism is raising a baleful hand against Genting Highlands, colorful flagship property, namesake and cash cow of Genting Berhad. The massive resort is threatened with closure, should the Pakatan Rakyat party win upcoming parliamentary elections. Since Genting Highlands sits on land leased from the state (shades of Macao), the threat is very real. Were it not for Genting’s lucrative — and prudent — foothold in Singapore, one would fear that Islamofascism could also kneecap the company’s expansion plans in the U.S.
It was only a matter of time before somebody tried to cash in on the tremendous potential of coupling gambling with the Branson, Missouri tourism market. Indefatigable Texas businessman Michael Wasserman is mounting his third petition drive to bring casinos to Arkansas. One of the seven (!) casinos he proposes would be sited just across the state line from Missouri, less than 20 miles south of Branson. The sheer amount of gambling (and drinking) Wasserman is proposing is certain to stick in the craw of the churchy set, but when times are hard, voters tend to see casinos as a source of “free money” for the state treasury.
Missourians might balk at the idea of an Arkansas casino luring tourists away from Branson, unable to resist the siren song of the slot machine. But Show-Me State voters screwed themselves well and good: In return for the promise of higher tax payments from casinos, they voted to cap the number of casino licenses in the state. Unless somebody goes out of business and their license can be moved to Branson, there’s nothing to be done. Hey Missouri, I told you guys not to vote for that constitutional amendment. I warned you. But ya did it anyway. Wanna blame somebody if Wasserman succeeds? Just look in the nearest mirror.
Colony comedy. Why is the Las Vegas Hilton going to be renamed “LVH Las Vegas Hotel & Casino” (almost as redundant as Le Reve — The Dream) or just “LVH”? The Las Vegas Sun seems slightly mystified but they probably haven’t heard of “ACH,” Colony Capital‘s can’t-miss rebranding of what used to be the Atlantic City Hilton. Also: Colony is a bunch of bungling numbskulls whose imagination doesn’t extend past abbreviations of the names of casinos they’ve wrecked or otherwise disgraced. That LV Hilton foreclosure can’t happen a day too soon. Goldman Sachs, you go!
Goldman..take over the LVH SOON! Perhaps they can foreclose and convince Hilton Hotels to keep the name on it first. What a joke. The only thing that hotel has going for it, is its name!!!
Total agreement with who I’m rooting for in the foreclosure battle with “LVH” blech.