The Las Vegas Sands decided to abandon its plans to build a 10 billion dollar casino in Japan. Sheldon Adelson’s company is trying to expand business in the country, but some points of local legislation have complicated the project’s development, according to Bloomberg.
The main objection is the fact that the license would only be valid for 10 years. After that period, the terms of the concession could be changed, affecting profit. The construction term was estimated at five years and, with a ten-year concession, there would not be enough time to obtain a satisfactory return.
Quite diferente from the legislation in Macau and Singapore that has licenses that can be extended for 20 or 30 years, respectively.
“We are grateful for all the friendships we made and the strong relationships we have in Japan, but it is time for our company to focus our energy on other opportunities,” said Adelson in an official statement.
The Japanese market is considered difficult, as the majority of the population is opposed to casinos, but it is potentially very profitable.
The Las Vegas Sands decision poses an additional problem for Japan’s Prime Minister Shinzo Abe, as he tries to boost the economy that was affected by the coronavirus pandemic.
Learn more about the Las Vegas Sands
The Las Vegas Sands (LVS) is the leading developer and operator of world-class integrated resorts that feature luxury hotels with retail operations; restaurants, entertainment options, facilities for meetings, exhibitions, ceremonies, among other spaces.
The venture was a pioneer in the segment and currently serves the business and leisure tourism markets. The Las Vegas Sands started with a single property back in 1990 and has taken over the world with operations from Las Vegas to Macau.
In all, LVS has more than 51 thousand members in its teams around the world.
