Sands China announced on Friday that its president and chief executive officer, Edward Tracy, will be retiring from his positions, effective March 6, 2015, after running Las Vegas Sands’ most lucrative gaming operation for almost five years.
In an announcement filed to the Hong Kong Stock Exchange, Sands China said that Mr Tracy “will be engaged by the company as a consultant from March 7, 2015” and “will continue to work with the senior management team during the transition and consultancy”. The announcement also suggested that Tracy has confirmed that “he has no disagreement with the board” and “there are no matters that need to be brought to the attention of the shareholders of the company in respect of his retirement,” before expressing the board’s gratitude towards Tracy for his service.
Although Mr Tracy was not available for comment, the Times received a statement from the chairman and CEO of Las Vegas Sands, Sheldon Adelson, after the retirement was announced. He said that Tracy has played an important part in the growth and success of Sands in Macau and “we will always be grateful for his many contributions.”
“One of [Tracy’s] many accomplishments was building a team of senior leaders who will help carry our momentum forward. As we conduct a search for [Tracy’s] replacement, we have every confidence our existing team will be both innovative and efficient in managing our business, while at the same time continuing to support the Macau government and its efforts to become a world center of leisure and tourism through the development of additional non-gaming attractions and amenities. We remain deeply committed to the future of Macau and the more than 28,000 team members there who are a part of the Sands family,” said Mr Adelson. “We wish [Tracy] the very best as he returns to the United States to focus on his family and his health.”
A gaming analyst quoted by Gaming Compliance, who requested anonymity, said Tracy’s importance to the company extended beyond Macau.
“In my view, Mr Tracy did a great job at repairing relationships with the government (both in Macau and Beijing) and that has been done quietly and without fanfare,” the analyst said. “His shoes will be tough to fill.”
Ben Lee, managing partner of gaming consultancy IGamiX Management & Consulting, said Tracy stabilized the company after the turmoil of the Steve Jacobs’ era, during which the company’s relationship with Macau authorities hit rock bottom.
Tracy was “instrumental in Sands China recovering their relationship with the Macau government,” Lee told Gambling Compliance.
“He came in at a time when they needed a diplomat to salvage what was left of their relationships with various tiers of local stakeholders, and he performed the statesman role exceptionally well,” he said.
“It will be a loss to Macau’s gaming industry to see him go,” Lee added.
The management change comes as Sands is preparing to open its fifth casino in Macau as early as this year, one of the first new projects to open after the city suffered its first annual drop in revenue, with China’s anti-corruption crackdown crimping spending by high-end players. New properties are expected to help operators drive back traffic and boost revenue.
“This was unexpected,” said D.S. Kim, a Hong Kong-based analyst at JPMorgan Chase & Co. “We expect the transition to be smooth and do not expect this news to have any major impact on fundamentals, including the schedule for new projects.”
Tracy has more than 20 years of experience in the gaming and hospitality industry. The executive was formerly a CEO of the Trump Organization, which included casino, hotel and entertainment entities.
One of his most notable achievements as the Sands China CEO was the diversification of the entertainment experience offered at the company’s properties, especially at the Venetian Macau. Under his watch, the Cotai Arena and Venetian Theater have hosted big-scale shows with world-class stars, such as the Rolling Stones, Rihanna, Alicia Keys and Justin Bieber. He was also responsible for building Venetian Macau into the new boxing hub of Asia, bringing world-renowned boxers like Manny Pacquiao to town.
He was the Times’ Person of the Year in 2013. JPL
A career of impressive accomplishments
Edward Tracy began his career in the hotel industry in the United States back in the 1970s, when he took up several posts at the Hotel Investors Trust, serving in multiple executive hotel management positions, including director of operations. He later served as chief executive officer for famous businessman Donald Trump in Atlantic City.
Edward Tracy also served as vice president and general manager of the Sands Hotel and Casino in San Juan, Puerto Rico, and as vice president and director of hotel operations for the New York-based company, Middex Hospitality.
Having arrived in Macau back in 2010, his accomplishments are impressive for someone who is new to the Chinese market, as pointed out by Inside Asian Gaming magazine.
Delivering shows of the scale of Las Vegas, Edward Tracy has also been committed to turning Macau into “a big-time boxing” destination.
According to “The World of CEOs” website, outside work Edward Tracy “likes to travel with his wife throughout Asia, especially in China. He is a sports enthusiast, being a tennis player and works out.” Mr Tracy is also an avid reader and is involved in many charitable organizations.
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