Las Vegas Sands Reports Drop in Profits and Revenues

The world’s largest casino operator Las Vegas Sands Corp. has reported on Wednesday that its first quarter revenues for 2015 were down almost 25% compared to year 2014. Shares have also fallen for 3.4% to $54.50 as the Las Vegas Sands Corp reported decline.

Las Vegas Sands’ net income for the first quarter of 2015, which ended on March 31, decreased 34.0% to $511.9 million, compared to $776.2 million in the first quarter of 2014.

Overall revenue fell to $3.01b, marking a significant drop in comparison to the first quarter of 2014, when this number was $4.01 billion.

Founded by billionaire Sheldon Adelson, Las Vegas Sands, like other casinos in Macau, has seen revenue decline due to the serious crisis in Chinese enclave of Macau.

The only place in China where casinos are legal has faced corruption crackdown by President Xi Jinping which cut the flow of cash from mainland China. Xi Jinping’s move has scared numerous high rollers from the VIP tables in Macau and the profits of all casinos have shrunk.

There are numerous reasons why Macau is struggling besides corruption crackdown. Alongside with the visa restriction plan, government has also proposed smoking ban. That means that smoking will no longer be allowed in VIP rooms and smoking lounges will no longer exist.

However it seems that Sheldon Adelson thinks that there is no reason for panic because of the revenue decline. In his opinion it is almost impossible to predict the future of the Las Vegas Sands in Macau, especially now when more government restrictions are on the way. Government is quite determined to introduce measures that they believe are good for Macau.

Macau’s government wants to diversify its economy beyond gambling as they believe that Macau needs more hotel rooms, non gaming attractions and entertainment venues.

Las Vegas Sands that operates four casinos in so-called “Monte Carlo of the Orient” is already working on converting its casinos into Las Vegas-style resorts to attract more guests.

Adelson, who appears to be very calm despite the Macau’s crisis, has said that outside Macau results were quite solid. Las Vegas Sands was able to return dividends to its shareholders even though the numbers were down compared to last year.

Adelson probably has plans to expand in Japan or South Korea’s gambling market as Korea is one of the countries that will benefit from serious situation in Macau. Many operators are interested in South Korea’s gambling market while Mohegan Tribe has already reached the deal to build a casino in Asia’s fastest growing casino market.

However, Las Vegas Sands’ results in the first quarter of 2015 might be good news for those who support Internet gaming, as they might slow down Adelson’s efforts to prevent online gambling legalization.

Photo: abcnews