Sheldon Adelson's Las Vegas Sands gives up on $10B Japan casino project

Fox Business Flash top headlines for May 12

Fox Business Flash top headlines are here. Check out what’s clicking on FoxBusiness.com.

Las Vegas Sands has decided to drop its plans for a $10 billion casino project in Japan.

Continue Reading Below

The Sheldon Adelson owned company has been trying to expand there, but the terms of the country's casino legislation were objected to by company management, according to Bloomberg.

GET FOX BUSINESS ON THE GO BY CLICKING HERE

One objection is the fact that the license would only be good for 10 years, after which terms could be changed that would impact profit.

Ticker Security Last Change Change %
LVS LAS VEGAS SANDS CORP 45.96 -2.54 -5.24%

Construction was estimated to take 5 years and with a 10 year concession would not be enough time for a good profit return.

CORONAVIRUS REOPENING PLAN DEALS LAS VEGAS CASINOS A LOSING HAND

By comparison, licenses in Macau and Singapore have licenses that can be extended 20 or 30 years, respectively.

CLICK HERE TO READ MORE ON FOX BUSINESS

“We are grateful for all of the friendships we have formed and the strong relationships we have in Japan, but it is time for our company to focus our energy on other opportunities,” Adelson said in a statement.

It is a tough market as a majority of residents are opposed to casinos, but it is potentially very lucrative.

The move by Las Vegas Sands is a blow to Japan's Prime Minister Shinzo Abe as he tries to boost the economy that has been hurt by the coronavirus pandemic.

Source: Read Full Article