Has the Las Vegas Sands Group Over Extended itself?

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Created on Tuesday, 09 December 2008 14:18

The Las Vegas Sands Corporation- the gambling behemoth created and owned by multi-billionaire Sheldon Adelson's casino company, suffered a share dive on the NY stock exchange after stating that it faces problems paying off its huge mountain of debts.
With $8.8 billion in borrowings, the groups says it needs to cut expenditure on new builds, increase earnings at Vegas and needs to tap the market for more funds.
Sheldon Adelson, is fighting a drop in revenues across his Vegas propoerties as consumers rein in their spending in the US. At the same time, his plans to spend $16 billion on new mega resorts in Macau, China, and Singapore, where Las Vegas Sands is targeting punters in Asia- seen as the new golden goose for casinos.- look to be on shaky ground.

Punters are spending less on The Strip and the Chinese Government is cracking down on visa applications into Macau. Adelson owns 64% of the company and he needs to restructure the debt and his development commitments.

Las Vegas Sands' new casio complex project in Singapore is under threat, as are plans for a new mega complex in Macau.

Las Vegas Sands owns the Venetian and Palazzo casinos and had built their business plan hoping to service the massive new debt on the back of earnings in Nevada. But this appears to have been a wrong assumption.