With Edward Tracy retiring and Rob Goldstein only undertaking the presidency of Sands China on an interim basis, Sheldon Adelson has named himself CEO of Sands China in addition to Las Vegas Sands. This is viewed as a positive move, centralizing the chain of command that connects Las Vegas, Macao and Singapore. “Business strategy has always been decided by Mr. Adelson all this while, so in terms of strategy, I wouldn’t expect any change,” offered BNP Paribas analyst Goh Shengyong.
Between them, Macao and Singapore represent 88% of Sands’ revenue and Adelson assumes the reins in China at a time of crisis, as casino revenues continue to slide. The government’s anti-graft campaign hasn’t gone away as Adelson predicted it would, and high rollers continue to keep a low profile. With its mass-market orientation, Sands China can say it’s insulated but it’d be kidding itself.
* Casino crisis or not, the Brookings Institution and JPMorgan Chase ranked Macao #1 in the world for Continued >>
For all the restrictions it has placed upon its casinos, there’s one restraint the Massachusetts Gaming Commission wants to ease. It has proposed raising the $600 ‘IRS lockdown’ imposed on slot winners: “a player will not be able to play the machine again until a casino or slots employee takes down the player’s name, address and 5 percent off of the $600 in winnings for a state withholding tax.” The prevailing lockdown point in the U.S. is $1,200. Commissioners are worried that the inconvenience of a lower jackpot lockdown could impel them to play in Rhode Island or other neighboring states.
“And the whole point of the Massachusetts law was to repatriate Massachusetts dollars that are now being spent in other states, and this runs counter to Continued >>
Going against Gov. Jack Markell (D), Delaware lawmakers are wrapping up a relief package for the state’s beleaguered racino industry. The tax rate on table games would be cut from 29% to 15% and the $3 million licensing fee would be eliminated. The state would also increase its percentage of vendor costs to 43.5%, costing taxpayers an additional $3 million annually. Slot machine revenue would get a 5% credit to offset marketing and capex costs. (“They want us to pay the full thing and that’s not fair,” said one detractor.) A controversial add-on would divert 1% of revenue from the state to the horseracing industry. Main proponent state Sen. Brian Bushweller (D) was forthright in his reasoning, saying, “We’re simply taking too much money. The simple solution to a simple problem is let’s take less money from the casino industry.”
Added Dover Downs CEO Denis McGlynn, “If you want this industry to fight the competition, you have to Continued >>