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AP Photo/Kin Cheung
The Sands Casino in Macau is seen Oct. 31, 2009.
Published Thursday, Dec. 2, 2010 | 10:18 a.m.
Updated Thursday, Dec. 2, 2010 | 2:15 p.m.
Las Vegas Sands Corp. today disclosed that its long-term development efforts in China sustained a setback when the Macau government did not approve a land concession for what are known as Parcels 7 and 8 on the Cotai Strip.
Sands China Ltd., Las Vegas Sands' subsidiary in China, has 15 days to apply to the chief executive of Macau for a review of the decision and 30 days to appeal the decision to the Macau courts.
"SCL (Sands China) is considering all options available to it," Las Vegas Sands said in a regulatory filing today.
In a recent regulatory filing, Las Vegas Sands said it had capitalized construction costs of $102.4 million as of Sept. 30 for these parcels.
It said work on the parcels would begin after casino resorts are completed on parcels 5, 6 and 3, and after "necessary government approvals are obtained, regional and global economic conditions improve, future demand warrants it and additional financing is obtained."
Development of parcels 5 and 6 has been stalled by labor shortages.
In all, Las Vegas Sands has proposed three integrated resort developments on the Cotai Strip, in addition to The Venetian Macao and Four Seasons Macao, on an area of about 200 acres.
After dipping as much as 7.8 percent on the news today, Las Vegas Sands stock closed at $49.17, down $2.17 or 4 percent.
While casino operators exposed to Macau have enjoyed strong gaming win growth in the Chinese enclave (42 percent in November), the Xinhua News Agency last month reported Macau's government may tighten control of its casino industry and limit the number of new casinos, table games and slot machines.
Poor Sheldon. Such a nice man. He probably has a labor shortage in Macau because the contractors won't allow him to screw them over, like he did to contractors here building the Venetian.
Such a nice man...
Karma's a b*tch! LOL
Hey Sheldon, Steve wants to move to Macau and is looking for roommate. Maybe, you and Gary Loveman could join him and they could call it Real World Communist China. Wait! They have a booming economy so no one calls them communist anymore, now it's economic partner.
Perhaps this is a blessing in disguise for Las Vegas Sands Corp. Although profits so far in Macau are staggering, overleverage can still kill a successful business. Slow down and apply most of the profits to debt reduction for the company. Then Sheldon can eventually leave a well-managed company to his heirs rather than one heavily in debt.
Yeah, the Obama Presidency has left American businessmen in such a confused state. They never know what socialist program he's going to try next. So much better in Macau where the commies tell you when to jump and how high.
I hope tou lose you shirt over there!
maybe he should not have screwed over the connection that got him in the door. Paybacks are a MF
You've got to wonder if the Chinese contact that Sheldon refused to pay is getting him back for cheating him out of his due (which he probably had to, in part, parcel out to officials to grease the right palms to get Sheldon into the market in the first place). So nobody got their cut and Sheldon got his casino, so now payback means no new casino for Sheldon.
next steve wynn will be looking to sell his vegas casinos... no wonder why the very wealthy asians don't have to come to vegas... when the asians give these americans owners of casinos in maccau, the syringe, maybe they wake up...