Las Vegas Sands is Being Sued by Macau Former Business Partner

One of the world’s biggest gambling companies is facing a major lawsuit from a former business partner. According to multiple reports, Las Vegas Sands is being sued by Marshall Hao, and his company Asian American Entertainment Corp (AAEC). It’s disappointing news for the Sands, which has invested billions in operations in Macau. Venetian Macao Hotel-Casino

Today, we’re going to look at why Las Vegas Sands is facing this lawsuit. We’re also going to look at some of this company’s recent expansion plans in Macau. Let’s get started!

Las Vegas Sands is Being Sued for $12 Billion

This company is known as one of the most successful casino operators in the world. Las Vegas Sands owns many gaming properties around the world, including several in Macau including the Plaza Macao, Sands Macao, and the Venetian Macao. According to Marshall Hao, profits earned through the Venetian Macao are not being paid to him.

Hao claims that he came up with the idea for this hotel-casino. Hao is also claiming that he’s owed 70% of the profits earned through Las Vegas Sands’ operations in Macau dating back to 2001. Now, his company is suing LVS for an astounding $12 billion.

Back in 2001, the AAEC and Las Vegas Sands filed a joint casino application in Macau. Marshall Hao is alleging that he helped Las Vegas Sands break into the Macau market. According to the lawsuit, he’s also the main reason why Las Vegas Sands is the world’s largest casino company.

This isn’t the first time that the Taiwanese businessman has tried to sue Las Vegas Sands. In 2007, he filed a lawsuit against the company, yet it was dismissed just three years later. Now, Hao is raising the stakes with a massive $12 billion lawsuit.

Sands China, a subsidiary of Las Vegas Sands that runs the company’s Macau operations, commented on the recent lawsuit, stating that it is “unable to determine the probability of the outcome of this matter or the range of reasonably possible loss, if any.” Sands China also claims that it’s ready to “defend this matter vigorously.”

Las Vegas Sands Continues to Invest In Macau

As we’ve already mentioned, Las Vegas Sands owns and operates several casinos in Macau. This city is thought of as the world’s top gambling hub and LVS continues to invest in expansion plans here. This company is investing more than $2 billion in Macau over the next two years.

LVS is working to expand and improve several of its properties here. Most of the $2 billion is going to rebrand the Sands Cotai Central complex to the Londoner, a UK-themed casino-resort. $1.35 billion is going towards this massive project.

Another $400 million is being used to construct the St. Regis Tower Suites Macau. More than $450 million is going towards the construction of the Four Seasons Tower Suites Macau. Both of these new properties are expected to be completed by 2020’s first quarter.

It’s unclear if this lawsuit will affect this company’s plans in Macau. Las Vegas Sands has been sued several times in the past, including earlier this year with a lawsuit from Richard Suen. LVS and Suen settled out of court for an undisclosed amount of money.

Macau’s Revenue Continues to Fluctuate

We’ve covered Macau’s revenue several times over the past few months. This small territory has experienced a massive revenue dip in 2019 due to trade disputes between the US and China and increased competition in nearby countries. In June, I briefly discussed the risk that Las Vegas Sands is taking by investing so much money here.

There were some analysts that believed Macau lawmakers would choose not to renew gambling licensed for US-based companies. The US is blamed for a major decrease in VIP gamblers visiting Macau. Pansy Ho, one of the most influential figures in Macau, now claims that US companies operating in Macau will have their licenses renewed in 2022.

Gambling revenue continues to fluctuate here. For most of the year, casinos in Macau have seen their earnings drop. In June, revenue here rose slightly, yet it’s unclear whether or not this trend will continue for the rest of 2019.

It’s clear that companies are taking risks by investing here. Las Vegas Sands is being sued now, and if even a portion of the $12 billion lawsuit is paid, it will be a major blow to this casino operator. Make sure to stay tuned for more updates on this situation over the next few months!

Macau Likely to Renew Las Vegas Companies’ Gaming Licenses

Macau, the world’s largest gambling hub, is set to renew gambling licenses in 2022. With trade wars between the US and China ongoing, some felt that lawmakers in Macau would refuse to grant new licenses to US-based gambling operators. A new report by Moody’s Investors Services states that Macau is likely to renew Las Vegas companies’ gaming licenses. Wynn Resorts In Macau

Many of the top casino companies in Las Vegas own major casinos in Macau. Refusal to license these companies would be devastating. Let’s look at what’s happening in Macau right now, and why Moody’s believes that lawmakers will allow the Las Vegas companies to continue operating.

Gambling Revenue in Macau Continues to Drop

It’s been an extremely disappointing year for gambling companies in Macau. For almost all of 2019, gambling revenue has dropped in this city. In May and June, revenue finally began to increase, yet not everyone is convinced that the trend will continue.

There are a number of reasons why this small territory is having such a hard time attracting gamblers. The main reason may be the trade war between the United States and China. This dispute has had a serious impact on China’s economy, slowing it at an unprecedented rate. As a result, many Chinese VIP gamblers are choosing to hold onto their money, rather than wager it in Macau.

There’s also a major increase in casino competition in the region. Several countries in Asia, including Cambodia and the Philippines, are beginning to invest in their gambling markets. Residents in and near these countries are skipping the trip to Macau and simply bet their money close to home.

Recently, the protests in Hong Kong have led to a decrease in tourism in Macau. This gambling hub has everything going against it, yet many of the world’s top casino companies continue to invest here. Fortunately, one of the top US bond credit rating companies believes Macau will choose to allow US companies to continue operating here.

Las Vegas Companies’ Gaming Licenses Likely to be Renewed

As we’ve already mentioned, several Las Vegas-based gambling operators including Las Vegas Sands and Wynn Resorts own major casinos in this territory. Both have also invested billions to expand and improve these hotel-casinos. For a brief moment, there was fear that Macau’s gambling authority would refuse to renew these companies licenses.

Most feel this is highly unlikely. Just last month, Pansy Ho, one of the most influential figures in Macau, stated that gambling companies with an existing gaming license would likely have their licenses renewed in 2022. Choosing to bring in new companies would do more harm than good, she claimed.

Moody’s Investors Services, a major US bond credit rating companies, has echoed that statement.

“We believe there will be changes to existing gaming concession agreements,” Moody’s said in an official report. “but also think it’s unlikely renewals will be rejected.”

The report from Moody’s also claimed that by refusing to renew Las Vegas companies’ gaming licenses, the territory faces economic instability and a serious risk to government finances. These companies bring in millions to the government each month. Officials in this territory won’t risk that money over political differences.

Las Vegas Casino Operators Continue Investing in Macau

It’s clear that Macau is struggling right now. The casinos here are not earning nearly what they were just a few years ago. This isn’t stopping casino companies from investing money here.

Some major companies believe that the recent revenue slump is temporary. Las Vegas Sands, for instance, is currently investing more than $2 billion on casino-resort expansions. MGM Resorts International is also committed to its Macau operations, made clear in a recent statement by spokesman Brian Ahern.

“Macau has transformed into a world-class entertainment destination, and we are looking forward to working with the government to help the region grow even more,” he said. “We believe in the long-term success of the region and will continue to support this vision by building on our diverse, world-class art, entertainment and food and beverage offerings – as we saw recently with the opening of the Mansion luxury villas at MGM Cotai.”

There is still more than two years before the next license renewal process. Based on everything we know, Las Vegas companies’ gaming licenses are in no danger of being revoked. Make sure to stay tuned for more updates on Macau’s casino industry!

Wynn Resorts Being Affected by Hong Kong Protests

For more than four months, thousands of Hong Kong residents have protested against the passing of a new anti-extradition bill. These protests have taken a toll on tourism in Macau. As a result, Wynn Resorts is experiencing a significant revenue dip from its Macau casino operations. Protests in Hong Kong

Wynn Resorts Ltd. owns and runs two major casino-resorts in Macau. Today, we’re looking at how the recent protests in Hong Kong have affected this territory. Let’s get into it!

Hong Kong Protests in a Nutshell

In case you haven’t heard, Hong Kong has been the center of massive protests for the past several months. Hundreds of thousands have gathered to protest the government’s proposal to change the territory’s extradition laws. It’s an on-going issue with no signs of slowing down.

Back in February, the Hong Kong Security Bureau proposed a new bill that would create an amendment to the territory’s extradition laws. The Fugitive Offenders and Mutual Legal Assistance in Criminal Matters Legislation would have allowed Hong Kong to extradite people in Hong Kong to Mainland China.

This was cause for serious concern. Opponents of the bill feared that this new bill would give Chinese courts control over Hong Kong residents. There was fear that the bill would apply not only to criminals but political dissidents, as well.

The Hong Kong protests were successful. In June, the government “suspended” the bill. On July 9th, the bill was “dead.” Protests, however, have continued here.

Many in Hong Kong are now calling for direct elections. Residents here are fighting for the right to choose legislative council members and the Chief Executive. Interestingly, the continuing protests have had an impact on Macau, the gambling hub of Asia.

Wynn Resorts Comments on Macau Revenue Declines

For most of 2019, gambling revenue in Macau has dropped. A number of factors have contributed to this decline. First, the US trade war with China has significantly impacted the Chinese economy. More people from Mainland China are now choosing to hold onto their money, rather than gamble it in Macau.

As we’ve already mentioned, the recent protests in Hong Kong have also had an impact on Macau’s revenue. One of the top gambling operators here, Wynn Resorts, recently commented on the revenue dips to the media. CEO of Wynn Resorts Matt Maddox feels this issue is a temporary one.

“Clearly in July, there has been some softness in VIP (business)and when you have hundreds of flights canceled out of Hong Kong and some reluctance to travel, I do think that is impacting the premium end of the business,” he said. “However, that, to me, feels very temporary and has really nothing to do with our business and everything to do with what’s going on in the region.”

Wynn Resorts continues to invest in Macau. Historically speaking, the small territory is one of the most profitable gambling destinations in the world. Let’s look at what to expect here over the next several months.

Macau’s Revenue Falls in 2019’s Second Quarter

The trade war and Hong Kong protests have significantly impacted the number of gamblers visiting Macau. In May, revenue in Macau increased slightly. Unfortunately, earnings over the first six months of the year are down.

New reports indicate that gambling revenue for the year’s first half is down by 0.9%. This represents a decrease of $197 million. Some analysts are now crediting the recent scandal regarding VIP junkets as a reason for the revenue decline, as well.

Most agree that this revenue decline will eventually end. Unfortunately, no one knows exactly how long the protests and US-china trade war will continue. This week, President Trump announced that he’s considering a new 10% tariff on $300 worth of Chinese exports.

Overall, Wynn Resorts is posting solid revenue numbers. This company recently opened the Encore Boston Harbor casino which has proven to be tremendously successful. We’ll need to wait and see how long it takes this company’s Macau operations to become profitable.

Make sure to stay tuned for updates on this situation over the next few months!

Pansy Ho Comments on the Future of Macau

Macau has had an interesting year. For the first several months of 2019, gambling revenue in this popular gambling city dropped. Finally, that trend appears to be changing. Pansy Ho, one of the top gambling executives in Asia, recently spoke to the media about the future of Macau. Pansy Ho Speaking at Conference

Ho has many ideas to increase revenue in this city. Now is the perfect time to look at some of the changes come here and talk about what Pansy Ho has in mind moving forward. Let’s get into it!

Macau’s Revenue Fluctuations, Explained

It’s well-known that Macau is the biggest and most profitable gambling destination in the world. Most of the biggest gambling companies in the world operate here, including Las Vegas Sands and MGM Resorts. Unfortunately, revenue figures have been dipping here for the majority of 2019. There are a few key reasons why.

First, the US and China are engaged in a major trade dispute. As a result, China’s economy is slowing down considerably. Macau relies heavily on Chinese gamblers to help bring in revenue to the city. With a worsening economy, more people in China are choosing not to gamble.

There is also the issue of outside competition. A number of Asian countries have recently begun to invest in their casino industries. The Philippines, in particular, is seeing a massive increase in its casino gambling revenue. Even Japan, which held some of the strictest gambling laws in the world, have recently legalized casino gambling.

For the first four months of this year, Macau’s revenue dropped. Finally, in May, things took a turn. Gambling revenue in this city increased by 1.8%. That’s obviously not a huge increase, but it’s an improvement. Now, one of the most powerful gambling officials is working on plans for the future of Macau.

Pansy Ho Details Plans for the Future of Macau

Pansy Ho, daughter of famous gambling businessman Stanley Ho, recently spoke about Macau’s plans for gambling expansion in a recent interview. Much of the conversation centered around the upcoming licensing renewal process. In case you’re unaware, Macau is set to review its gambling licenses in 2022.

Ho believes that new gambling companies in Macau need to offer the city more if they wish to obtain a gambling license. She also believes that the companies that currently hold a license here should see their licenses renewed without any issues. Ho states that the companies currently operating here have proven they can run a successful gambling venue.

The billionaire gambling mogul believes that an “abrupt stop” to any of these casino licenses in 2022 would be both Macau. A replacement, she argues, could be worse than any company forced to leave this city.

Pansy Ho is certainly optimistic about the future of Macau. She claims that the recent changes to the city’s regulatory restructure will help things in the future. Several companies will soon begin to work for a gambling license here.

New and Old Companies Investing in Macau

Macau’s recent revenue figures haven’t been great, yet many of the world’s top gambling companies are continuing to invest here. Las Vegas Sands is working on a massive $2 billion renovation of its Macau casino. Company heads believe this market will continue to grow over the next decade.

With the current trade war between the US and China, some speculated whether or not Macau would offer new gaming licenses to companies based in the United States. According to Pansy Ho, this is not the case. She claims that all potential companies will be given a fair chance to break into this city.

She also states that government officials in Mainland China will have no power to ban US casino companies from operating in Macau. It’s great news for the casino operators that are hoping to enter here.

The future of Macau is still looking great. Concerns that this city may fall to the wayside seem to be dying down. Companies are continuing to invest here, and revenue is finally beginning to increase. Stay tuned for more news on Macau’s revenue figures for the rest of the year!

Macau Revenue Increase Boosts US Casino Stocks

For much of 2019, gambling revenue in Macau has been dropping. That trend appears to be changing. Gross gambling revenue has been increasing here for the past two months. As a result, US casino stocks are performing better, as well. Paper On Stocks And Shares

It’s a great sign for both Macau and casino operators in the city. Now is the perfect time to look at why this small territory is beginning to bounce back. We’ll also talk about some of the major investments coming here in the future.

Macau’s Gaming Revenue Finally Starting to Increase

As we’ve already mentioned, 2019 hasn’t been a great year for Macau. For months, gambling revenue here has been on a steady decline. This is mostly due to lower numbers of VIP gamblers playing inside the city’s casinos.

Chinese-US trade battles have hurt China’s economy. As a result, more Chinese gamblers are choosing to hold onto their money. Despite many new investments into Macau, including a bridge connecting it to the mainland, revenue here continued to drop for the first four months of the year.

That trend is finally changing. In May and June, gross gambling revenue here has increased. June proved to be the most successful month of the year for casinos. Overall, gambling revenue reached $2.96 billion last month.

This represents a 5.9% year-on-year increase from the year before. It’s clear that things are turning around in Macau. A number of major US casino stocks are now benefiting from Macau’s revenue boost.

US Casino Stocks Rise Alongside Macau

Some of the top US casino companies operate casinos in Macau. Fortunately for these companies, many of their stock prices are increasing. It makes sense, as revenue earnings in Macau add money into these companies portfolio.

Wynn Resorts is experiencing the biggest stock jump. As of today, this company’s stock price jumped by 7.2%. Las Vegas Sands saw a massive increase of 4.6% in their stock price. Caesars Entertainment, which recently merged with Eldorado Resorts, had a stock price increase of just 1%.

Macau casino operators stock, as a whole, increased by 7.5% in June. It has to be a major relief for these companies, some of which are investing heavily into this city right now.

Major Investments Coming to Japan

For months, gambling analysts begin to speculate whether or not Macau was falling to nearby countries such as the Philippines and, eventually, Japan. The fact that revenue is increasing here once again is squashing these theories. Macau remains the most lucrative gambling destination in the world.

To their credit, many US companies are continuing to invest here. Las Vegas Sands is currently working on a new $2 billion project in the city. Wynn Resorts opened a brand new casino-resort here in 2016 and continues to pour money into renovations and new venues.

Of course, Japan remains the most exciting new casino destination. The companies that we just mentioned, along with MGM Resorts and Mohegan Gaming & Entertainment are all working hard to break into this country. The first Japanese casino licenses will be handed out in mid-2020.

US casino stocks are clearly benefiting from Macau’s revenue increase. Hopefully, gross gaming revenue will continue to increase here for the remainder of 2019. How the Japanese casino market will affect this city is not yet known.

Will casinos here continue to see revenue increases? How will competition from other countries begin to affect Macau? Stay tuned for updates in the near future!