2021 was a great year for the casino industry in Las Vegas. This year even looks better for gambling companies in Sin City. To start off, the Nevada Gaming Control Board has approved Apollo Global Management to buy the Venetian, Venetian Expo, and Palazzo.
This is the biggest asset sale in the Las Vegas Strip, announced in March last year by the Las Vegas Sands. The details included selling the casino operating rights to Apollo for $2.25 billion and $4 billion for the property to VICI.
Meanwhile, the Nevada Gaming Commission has to evaluate NGCB’s decision on February 17. Once it approves, the acquisition of the property will proceed.
This marks the end of Las Vegas Sands in Las Vegas. It was the biggest gaming company regarding market capitalization.
Apollo Appeased Nevada Regulators Despite Internal Wrangles
Leon Black and Josh Harris are the co-founders of Apollo. The two are involved in power struggles, with Black accusing Harris of causing a revolution and running a smear campaign.
There is a legal case filed in January 2022 concerning the two co-founders. Leon’s attorneys also insist that Josh hired a PR company to create a tie between Black and Jefferey Epstein.
Meanwhile, Apollo does not have to convince Nevada regulators that is the ideal choice. Apollo has previously operated Caesars Entertainment and is currently running the Great Canadian Gaming Corporation and Gamenet Group S.p.A in Italy.
Moreover, it is also rumored to be in other mergers and acquisitions in the gaming industry. This proves that Apollo has all the needs to run a gaming property in Nevada despite having leadership battles among the top leaders.
What’s Next for Sands?
With the completion of its Las Vegas sale, Sands will remain with no gaming property in the USA. But, this is not the end of the brand in the country. It plans to develop a new casino resort in Texas and Florida and is likely contending for a gaming permit in New York City.
The group is targeting to expand its properties in Singapore and Macau, the only other markets it has invested in. Sands operates five incorporated resorts in Macau, making it the leader in market shares.
The company plans to use some of its money from the Las Vegas property sale to improve non-gaming properties in Macau, gaining some favor from regulators. The brand also plans to invest $1 billion in Singapore-based Marina Bay Sands.
Meanwhile, analysts have opinions suggesting that Sands should use some of the money from its sale to buy back on stock. These analysts have noted that the Sands stock is yet to return to a pre-pandemic high.
Is Penn National Gaming Planning to Buy a Property in Las Vegas?
Apollo is not the only gaming company planning to buy a property in Las Vegas. Penn National Gaming, through its CEO, has expressed interest in adding a Las Vegas casino to its portfolio.
According to CEO Jay Snowden, it would be nice for Penn to own a casino in Las Vegas. However, Jay expressed his company was not interested in an irrational bidding competition to own a casino in Sin City. For now, we have to wait for the next casino on sale to see whether Penn will be interested.
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