An article published in the Manila Standard Today claims that many in Macau are ‘up in arms’ against Las Vegas Sands. The root of the animosity appears to stem from the fact that the US company has made plenty of money from its Macau gaming business but is funding its Singapore casino resort, which will be in competition with Macau, whilst abandoning expansion plans on the Cotai Strip. A petition is in the pipeline calling upon the Macau government to impose stricter rules and tighter supervision on the Sands operations, including ensuring that locally generated funds are not being sent overseas to finance projects that will be in direct competition.

The petition says the casino operator, which trades as Venetian Macau SA in Macau, “must know that its actions will have serious impact and repercussions on the Macau economy and the Macau people.” Deeply felt bitterness is evident in the tone of the petition: “Sands Casino was given most favorable treatment by the Macau Government and granted land concessions in the Cotai area at a low price on certain representations and promises that it has now failed to fulfil: there was no significant incremental foreign tourism as originally represented and no substantial increase in convention business; and now, projects in Cotai are left uncompleted.”

It goes further: “Finally, by abandoning Macau people in preference for Singapore, Sands Casino hurt and injured the pride and feelings of the Macau people showing Sands Casino to be ungrateful and non-appreciative of the goodwill and special favors granted... by the Macau Government...” The petition also states that despite making substantial profits from Macau, Sands has not contributed to Macau society and did not even donate significantly to help the Sichuan earthquake victims.

Whether the government will heed a petition from Macau residents remains to be seen. Local businessmen and workers have certainly been hurt by the actions of Las Vegas Sands but they are not alone. The rapid change in economic circumstances has caught many companies around the world in the downward spiral and will continue to drag some of them under. Better times will undoubtedly return but Las Vegas Sands may lose out when it comes to customer loyalty. (E-01.22.09)

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