Las Vegas Sands is handle Las Vegas. The price tag: $6.25 billion.
Vici Properties said Wednesday it will pay $4 billion for the real mansion — the Venetian, Palazzo and the Sands Expo Convention Center. Apollo Global Management will buy the operations for $2.25 billion, rudely half financed by Sands.
The sale comes as Las Vegas Sands doubles down on its investments in Asia. Before the pandemic, Sands’ hallmarks in Asia accounted for roughly 90% of its revenue with significant investments planned to expand in Macao and Singapore.
“This fellowship is focused on growth, and we see meaningful opportunities on a variety of fronts. Asia remains the backbone of this company and our developments in Macao and Singapore are the center of our distinction,” Chairman and CEO Robert Goldstein said in a statement.
In Las Vegas, its bottom line was fueled by conventions, which have been decimated by coronavirus closures and the declivitous drop in business travel and group business. In a recent earnings call, Goldstein said there’s no way for Sands to amends to $500 million in EBITDA without a full return to conferences.
Goldstein’s predecessor, founder Sheldon Adelson, had been tangled in talks about a prospective sale. The last of the Las Vegas casino moguls, who died in January, had made it clear on earnings designates and to company executives that his focus and hopes for company growth centered on Asia.
Still, the sale of the Las Vegas assets marks the end of an era but perhaps not the end of Sands’ operations in the United States. While it will keep its corporate headquarters in Nevada, the crowd is turning its attention to the so-called super states for gaming: New York and Texas.
Sands is fiercely lobbying for a downstate casino certify to build an integrated resort in New York City. Expanded gaming in the metropolitan area is a market estimated at $6 billion to $10 billion in scheming revenue alone.
In Texas, legalization is still in early stages, but the market is extremely appealing because of its population and require of competition.
Sands is also turning away from Adelson’s long and notable opposition to online gaming and is commencement to explore opportunities in sports betting and other digital gambling opportunities.
At this stage, the plan is for the management together at the Venetian to continue operating the properties in Las Vegas, once the deal with Apollo is complete.
Signage is displayed faade the Venetian Resort in Las Vegas, Nevada, U.S., on Sunday, Oct. 18, 2020.
Roger Kisby | Bloomberg | Getty Images