For the second time, Las Vegas Sands has decided that Sands Bethlehem was too valuable to sell, especially after it set a state 
record for table game revenue. (Earlier, Sands was bruited to be in talks with Tropicana Entertainment to sell the place for $1 billion,) Negotiations with MGM Resorts International over the property have “collapsed,” according to multiple Morning Call sources. Sands COO Rob Goldstein made the case for keeping its Bethlehem presence in a recent investor call, saying “Bethlehem represents a pretty extraordinary investment in terms of what we put into the market versus what it returns to us, although it’s a small number, obviously, relative to our other assets.” Analysts blamed a potentially watered-down gambling market (slot routes, DFS, Internet gambling) for the fruitless end of the negotiations.
Even the breakdown of talks with MGM doesn’t mean that Sands’ $90 million expansion is back “on” again. The company is holding it hostage to a legislative vote over gaming expansion. “If job-
killing policies that expand gambling are put in place, it’s infeasible to reinvest in this property,” said company spokesman Ron Reese. You’d think, given those remarks, that Sands would get out will the getting was good, but CEO Sheldon Adelson obviously thought otherwise. Noting that Sands hadn’t fully monetized its acreage, Bethlehem Mayor Robert Donchez said, “It’s very important for the Sands or MGM to continue developing the site, and if they are not interested in developing the site, consider selling off parcels to developers who are.”
Other sources speculate that it was MGM that got cold feet upon seeing the Lege’s expansion proposals, even though casinos would probably be juiced in on DFS and despite the fact that MGM has Internet gambling in New Jersey. While a Sands Bethlehem sale would have bolstered MGM’s growing East Coast portfolio, with many cross-marketing opportunities, hanging onto it reduces Sands’ exposure to the vicissitudes of the Macao market, however slightly.
* Crown Resorts is trying to score a profit on its Alon acreage, which it acquired for $280 million and now hopes to shop around for $400 million. (In the irony of ironies, they could always sell it back to Phil 
Ruffin, who would like to piggyback a casino expansion onto Trump International.) That’s just south of $12 million an acre and we say ‘Good luck,’ because Las Vegas Strip land isn’t moving at that price, even with tourism at record levels. Besides, as one analyst said, companies are more fixated on improving their existing resorts than building new ones. (Wynn Resorts‘ board only approved Wynn Paradise Park after its budget had been shaved by two thirds.) And those who *are* talking about new projects — I’m looking at you, Mark Frissora — have land already that isn’t being monetized.
Bumbling Crown owner James Packer once remarked that “you can’t be in the gaming industry and not have a special reverence for Las Vegas.” However, just because you have reverence for Sin City doesn’t mean you have the aptitude to invest there, as Packer keeps demonstrating. Mariah Carey‘s wedding dress wasn’t the only Packer investment that’s gone up in flames or quietly faded away. You have to feel sorry for the guy; nothing seems to go his way.
* Carpers who say the casino industry never gives anything back should talk to the folks in the Bettendorf, Iowa, area where the Scott County Regional Authority is funding new projects through taxes paid by Isle of Capri Bettendorf. The grants are as ambitious as $250,000 toward a health-and-wellness center at St. Ambrose University and as modest as an all-inclusive playground where wheelchair-bound children like Gabe Cypret will be able to play. As Cypret’s mother, Gloria, said, “This always makes me cry that they are as passionate as we are.” Good on Scott County and on Isle.
