Pricewaterhouse Coopers, accountant to the stars — and Las Vegas Sands — tendered its resignation last week, news that Sands kept carefully under wraps until after the markets closed on Friday. After a brief, initial shock, Sands shares went back to trading as usual. J.P. Morgan analyst Joseph Greff explained the rupture thusly: “we think this is likely a situation where a service provider reviewed the amount of fees its client pays in relation to services rendered and decided to quit the account.” In other words, keeping Sands’ books was more trouble for PWC than it was worth. This ends a quarter-century relationship between the accounting firm and Sands CEO Sheldon Adelson. Evidently that was more than enough of Adelson for PWC’s taste, according to Wall Street Journal sources. The unpleasant surprise that Sands had committed some still-undisclosed Foreign Corrupt Practices Act boo-boos is alleged to have played a role as well. PWC, for its part, may have double-dipped by acting as a consultant in the neverending Richard Suen lawsuit while continuing to serve as Sands’ auditor.
Perhaps not coincidentally, Sands’ Hong Kong auditor also stepped down, paving the way to have Sands China‘s books handled by a firm that’s outside the reach of U.S. regulatory scrutiny. However, ‘whales’ smuggling embezzled funds into Macao casinos will find that there’s a new sheriff in town. Peking has sent regulatory veteran Li Gang to be on the lookout for officials wagering suspiciously large bankrolls.
It’s still about four months until the Massachusetts town of Palmer decides whether or not to throw in its lot with Mohegan Sun. However, this is the point where a lot of other shoes have begun to fall. For one, height restrictions will have to waived so that Mohegan Sun can build its hotel. Two pieces of adjoining real estate will have to be rezoned. If not, residential development could nestle on the fringes of the casino site. Palmer officials may feel they’re being strong-armed but, if they want the Mohegans to succeed, they’re going to have to play ball and they darn well ought to know as much.
Living on borrowed zest. Penning a maudlin ode to high-living casino founder Don Laughlin was the Las Vegas Review-Journal‘s Paul Haraism. Joy-riding in Laughlin’s chopper over the unincorporated Colorado River town that bears Laughlin’s name, the reporter also oohed and aahed over the mini-mogul’s Rolls-Royce. If it ever occurred to him to ask whether tips that Laughlin confiscates from his employees underwrite his fancy-pants lifestyle, Harasim evidently kept that question to himself.
My dad has told me that Don Laughlin would occasionally stop by late grandfathers tavern/liquor store in Austin, Minnesota back in the 50’s and 60’s. Considering there were card games going on, along with some sort of a lottery game in which numbers were picked out of a hat Mr. Laughlin probably would have liked this dive bar decades and decades ago.
I should also add that Mr. Laughlin has plenty of money and should not take his dealers tips. That is BS.