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The Las Vegas Sands Corporation, a US casino operator, has announced plans to begin working on the multi-billion dollar Macau casino industry project in January. The construction for the project was brought to a halt last year when funds for the company to expand were insufficient according to the company.
The Chinese are the world's largest casino market and Sands is hoping to raise over $3.3 billion by selling shares of its casino businesses to raise the money for the expansion. On Monday, the IPO became available to retail investors after demand from institutional investors became high executives say.
When the project was suspended last year, 11,000 workers were out of jobs and now the company is proposing to hire as many as 12,000. Nearly $500 million dollars will go towards making the project re-launch a success, which will be used to hire construction workers.
Right now, the Macau gambling industry derives most of its profits from gambling, but Sands wants to expand that to compare to that of the Las Vegas industry, where more than just gambling comes into the equation. Shows, dining and shopping are a core part to the success of Las Vegas and by adding those elements to the Macau casino industry, there will be a more diverse way for the industry to bring in revenue.
Sand's Chairman, Sheldon Adelson plans to make a section of Macau into the Cotai Strip, the Chinese version of the Las Vegas Strip. "We expect that Macau will evolve into the same type of business model that the integrated resorts on the Las Vegas Strip have evolved into," Adelson said Sunday, in a video conference with Hong Kong reporters.
The Macau industry's future looks bright and these projects are sure to be a success with China as their main market.
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