Casino behemoth Las Vegas Sands may leave the Pennsylvania gambling market, after it confirmed on Friday that it has been approached in relation to the potential sale of its Sands Bethlehem casino resort. Word has been spread that fellow casino developer and operator MGM Resorts International has expressed interest in acquiring the gambling complex. Representatives of the two companies have refused to confirm or deny the floating media reports.
Located in Bethlehem, Pennsylvania, the Las Vegas Sands property is one of the largest and most profitable casinos in the state. It generated net revenue of $571 million in 2016, up from the amount of $549 million reported for the previous year. Pennsylvania’s annual casino revenue totaled $3.2 billion last year, which really shows that Sands Bethlehem is holding quite a significant share in the local casino market.
Las Vegas Sands said in a statement that there were talks about the potential sale of the property but that these would not necessarily end in a deal being closed. Here it is also important to note that it would probably take several months before a transaction is finalized. Under Pennsylvania laws, a comprehensive review should be carried out by the local Gaming Control Board first, in order for the legality of the deal to be proved.
Why Would Las Vegas Sands Want to Dispose of a Profitable Property?
Although Sands Bethlehem seems to be performing quite well, it is easy to notice that the property differs significantly from the other Las Vegas Sands-owned venues in Las Vegas, Macau, and Singapore. Over the past several years, the major gambling operator has invested heavily in the development and operation of integrated resorts to respond to a growing demand for multi-purpose properties with diverse offering beyond gambling.
Another important thing to take into account is the fact that Pennsylvania seems to be extremely close to legalizing online gambling within its borders. On the other hand, it is no secret to anyone in the industry that the Las Vegas Sands owner – Sheldon Adelson – is a staunch opponent of this type of gambling offering and has been lobbying for a federal iGaming ban for some time now. This is why the gambling operator’s decision to leave the local market may have something to do with Mr. Adelson’s unhidden antipathy to online gambling.
Sands Bethlehem was put up for sale back in 2014 with New York billionaire investor Carl Icahn being its potential buyer. However, the two parties did not agree on a deal and the property remained in Las Vegas Sands possession.
