Las Vegas Sands Chairman Sheldon Adelson recently held a conference call with analysts to discuss the company’s second-quarter earnings. In a conference call, Adelson informed analysts that its subsidiary, Sands China, is planning to open a Macau casino resort in Paris.
The Kotai district is now home to numerous new casino resorts, including Wynn Palace, a new $1 billion resort in Wynn Resorts. Adelson also confirmed that Paris Macao will not be phased in and will fully open to the public in September. The 82-year-old billionaire says plans for Paris Macao are going as planned and senior Sands China executives are not concerned about competition with the new casino opening in the Cotai district.
In a statement, Adelson said, “I have no doubt that Parisians will replicate the success of Venice [Macao] as another themed, iconic, and a must-visit integrated resort for Macau visitors. I am extremely confident that the opening of Parisians will allow us to see growth in Macau.”
Paris Macao does not yet know how many game tables the Macau government will approve for the new facility. Game analysts believe the government will follow similar policies in Melco Crown Entertainment’s Studio City and Galaxy Entertainment Group’s Galaxy Macao Phase 2 and allocate around 250 game tables each to Win Palace and Paris Macao. Adelson said Sands China has a strategy to move game tables from other properties in Macau to Paris Macau if needed.
The Macau government has launched an anti-corruption crackdown at Beijing’s behest, and is wiping out corruption and money laundering against the casino industry and VIP gamblers. As a result, Macau’s total revenue for games fell for 25 consecutive months, compared with a 8.5% decline in GRR.
The brokerage firm Sanford C. Bernstein Ltd. said Paris Macao’s success depends on its ability to leverage several resorts in Macau and optimize its popular market gambling customers. Paris Macao has also been focusing on developing non-game resources to attract families and generate revenue from entertainment facilities, following the advice of the Macao government.
The lackluster total gaming revenue in Macau also affected Sands China’s earnings, which were down 16.4% in the second quarter when compared to earnings of $1.48 billion.