Gaming | LVS remains confident on concession renewal in Macau

Las Vegas Sands (LVS) remains confident in the gaming concessionaire renewal process, as it boasts its track record, development, and investment in the city.
In its annual earnings call for the third quarter, chairman and CEO Rob Goldstein was assured that there are no chances of Macau being excluded in operating any casino assets in the near future.
“We have the unparalleled track record,”the executive said.
“I think the government has recognized we’ve been an awfully good licensee and partner and friends with China and Macau, and we’re eager to be back there. So no, I don’t believe that’s a possibility [of a fall out],” Goldstein added.
Gaming concessions are due for re-bidding next year. However, the government has not yet provided guarantees that any will be renewed. Many have also called on the government to extend the validity of the concessions, which end in June 2022, due to the adverse effect of the Covid-19 pandemic on the industry.
The announcement of the government’s changes on the gaming law last month have triggered a sell-off of gaming stocks, as stocks plunged to as much as USD18 billion.
This comes after the announcement that concessionaires will face tighter scrutiny from the government, which will have a greater authority to verify the background of the staff hired by both the concessionaires and entities who work with them.
Regarding the concession renewals, Goldstein has said that Las Vegas Sands is “prepared for it” amid the current pandemic crisis globally.
“We’ve always found the government very reasonable, very thoughtful, and very fair. And we’re not concerned whether they make that decision next month, the month after, or make it in June. I don’t know when they’re going to make that decision,” he said.
“I’ll let them make that decision and tell us. We’ll respond accordingly. But we have no trepidation or any fear that there will be an issue of this. We knew this was coming,” the CEO added.
Meanwhile, local casino operators are expected to see a slump in profits during the third quarter, predicting an EBITDA of HKD62 million, according to a Bloomberg survey of estimates from eight brokerages.
According to a report issued by Bloomberg, “analysts forecast that the latest quarter would be this year’s worst so far, with the industry’s profit estimate plunging significantly from the HKD14 million reported by operators in the previous three months.”