Whilst the Trump casinos are once again headed for the bankruptcy courts due, in part, to falling gambling revenues in Atlantic City, another beleaguered gaming operator has declared it is focused on cutting costs. In its fourth quarter and full year 2008 report, Las Vegas Sands said that it should generate approximately US$250 million in ‘annualized’ savings.

William P. Weidner, president and COO stated, "We remain focused on the execution of our business plan as presented in November of 2008. That plan calls for us to focus on three basic objectives. First, to maximize our cash flow from current operations in Las Vegas and Macao, principally through the implementation of cost savings programs and the achievement of operating efficiencies throughout our company. Second, to complete on time and on budget our properties currently under development in Singapore and Bethlehem, Pennsylvania. Third, to pursue the sale of non-core assets, which has always been an important component of our business plan.”

It is this third point that is causing some consternation in Macau. The sale of non-core assets, such as the shopping malls at Venetian Macao and Four Seasons Macao, is seen as likely to create an adverse impact on the local economy. A Macau residents group is now considering seeking a court injunction to prevent Sands from selling, claiming the developments were built with concessionary land purchases, which would damage the local property market and discriminate against other developers.

Sands was granted the land at concessionary rates by the Macau government for casino and tourism projects. The residents group said the sale of non-core assets would contravene the Articles of the company’s casino concession, which do not allow for non-gaming activities. Sands has stated that it is working with full permission from the MSAR government and is in full compliance with the laws of Macau. (E-02.17.09)

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