Las Vegas Sands is one of the biggest and most successful casino companies in the United States. Unfortunately, it’s been experiencing a major drop in earnings over the past few years. This week, the Las Vegas Sands revenue reports surfaced and many are shocked to see how far things have dropped.
The truth is that all US casino companies are seeing their revenue figures decrease. This is a tough time for this industry. Today, we’re going to look at how much money LVS managed to bring in during 2020’s second quarter.
Let’s get into it!
Tourism in Las Vegas Continues to Drop
Las Vegas is home to the world’s greatest casino-resorts. Some of these were constructed decades ago. Others are brand new. There are even a huge number of world-class properties being constructed here right now!
Unfortunately, tourism into Las Vegas has been dropping steadily over the past few weeks. As you probably already know, rates of Covid-19 continue to increase around the United States. That’s certainly the case in Nevada.
Nearly 40,000 cases have already been reported in this state. The vast majority of cases are in Clark County. Thousands of new cases have been recorded in Clark County over the past couple of weeks alone.
The casinos in Las Vegas rely on tourism. Unless visitors are flocking to the city, these massive properties won’t earn any money. It’s no surprise that most casinos here have been seeing their revenue drop considerably.
Hotel-casinos in the city are doing everything they can to increase their profits. Some have decided to cut down on the number of rooms available. Others are offering travel deals to attract more players. None of these efforts seem tremendously successful.
We’re now starting to hear about exactly how much money the casino companies here are losing.
Here’s What the Las Vegas Sands Revenue Reports Say
We all knew that casinos in Nevada are hurting. With that being said, it’s jarring to see exactly how much money these properties are losing. Over the past couple of days, more of Nevada’s casino operators have been reporting on their second-quarter revenue earnings.
The Las Vegas Sands revenue reports are coming out. According to these reports, this massive casino company has seen its revenue drop by an incredible 97% last quarter when compared to the same three months in 2019. That makes this the worst quarter in the company’s history.
Through April, May, and June, this company brought in just $98 million. That’s an incredible drop from the $3.3 billion made over the same three months last year. Chief Operating Officer Rob Goldstein spoke about the reports during a media conference call this week.
“We’re in a world of hurt here, in terms of Las Vegas,” Goldstein said. “Vegas is dependent on airlift, it’s dependent on group and convention. It’s not a casino-driven market anymore, so we’re struggling here. And I think I speak for Las Vegas – Venetian and Palazzo – that I assume that may translate to other properties as well.”
CEO Sheldon Adelson claims that the recovery process is underway. It’s guaranteed that 2020’s third quarter will be better than the second one. Unfortunately, things are likely to remain very tough for this company throughout the year.
Are any of these companies in danger of going under?
Looking at the Future of the US Casino Industry
The entire world is in an unprecedented time right now. A huge number of industries have been affected by the global pandemic. Some may never recover. Many analysts are trying to understand the long-term effects on the land-based casino industry.
Obviously, things are incredibly difficult for casino companies right now. If rates of Covid-19 begin to drop, however, the industry could be poised for a major comeback. Many international casino destinations with low infection rates are seeing their gambling revenue increase.
Some of the smaller casinos may end up being forced to permanently close down. That’s unlikely to happen with the big ones, though. These companies are likely to receive funding from the government.
Most US casino companies are now focusing on their online gambling operations. Ones with property in states with legal sports betting are seeing their earnings come mostly from this industry. Of course, the real money will always be in gamblers playing inside the casinos.
Only time will tell how long it takes for casino revenue to return to the way it was in 2019. There are many factors in play that will have an impact.
Are you surprised to see the Las Vegas Sands revenue reports? How much money do you think this company will make in quarter three of this year? Let us know in the comments section below!