The free fall that has affected earnings and revenue for casinos in the Macau market shows little sign of ending any time soon and Las Vegas Sands which is focused on Macau where it has about 13,000 hotel rooms, saw Macau revenue fall just short of 29 percent during the third quarter.
But the company’s Las Vegas-based leadership decline to echo any of the harsh criticism that Wynn Resorts CEO Steve Wynn has aimed at the government’s cap on casino table games.
Perhaps that is because the company’s next LVS Macau resort, the Parisian is not due to open for about year and there’s no telling what the next 12 months might look like.
Instead of criticism for government policies, LVS Chairman Sheldon Adelson told those tuned into his comments during a third quarter conference call Wednesday, that the company’s presence in China is recognized as a “privilege and not a right.”
He said at another point in the question and answer session involving financial analysts, “We have always been respectful of the Macau government . . . We do everything we can to direct our properties toward the government’s objectives,” which include a lot of diversification involving nongaming amenities.
Adelson’s executive team conceded there has been a lot of what the company considers prudent cost-cutting that does not affect the customer experience. As one executive noted, “We are a company that is built to operating in the current market but we’re got to be careful as we reduce costs (because of lower revenue) that we don’t start cutting muscle.”
Phil Hevener has been writing about the Nevada gaming business for more than 30 years. Email: [email protected].