Venetian reveals option to back out of Macau

Friday, March 22, 2002 | 11:14 a.m.

Sheldon Adelson's entry into the Macau market isn't a done deal, executives with his company told the Wall Street Journal for a story today.

Though listed as a partner in a consortium called Galaxy Casino, Adelson's company only has an option to acquire a large stake in the company, Las Vegas Sands Inc. President Bill Weidner told the Journal. Weidner said Las Vegas Sands is unlikely to exercise the option without getting prior approval from Nevada regulators, the paper said.

Las Vegas Sands is Adelson's company that owns the Venetian megaresort on the Las Vegas Strip.

However, Weidner emphasized that Las Vegas Sands is still eager to invest in Macau through Galaxy.

The difficulty centers around Yip Wai Chau, one of the Venetian's partners in Galaxy. Yip's late father, Yip Hon, was linked to organized crime by "multiple U.S. law enforcement agencies," the Journal said. However, no such link has been ever been established or suggested with Yip Wai Chau.

"I don't think it's reasonable to hold the son responsible for the conduct or activity of the father," Randy Sayre, chief of the control board's investigations division, told the Journal. But Sayre added "it raises a question."

Weidner and control board officials could not be reached for comment this morning.

Las Vegas Sands and casino developer Steve Wynn were both awarded provisional gaming licenses by the Chinese coastal city of Macau in February. The two were selected to break up a 40-year monopoly held on the city's gambling industry by Stanley Ho, but must still negotiate final terms with Macau government officials.

Unlike Las Vegas Sands, Wynn has said he owns 90 percent of the stock of Wynn Resorts Macau. Wynn's minority partner is Macau textiles executive Wong Chi Seng.

The presence of the Venetian in Galaxy Casino was a critical factor in its successful bid, as Macau officials said they were attracted to Adelson's vision of creating a casino property with substantial convention space.

If either Wynn or Adelson are unsuccessful in negotiating a final license with Macau, the government would then turn to first runner-up MP Entertainment. That company is a joint venture between Park Place Entertainment Corp. and Mandalay Resort Group.