Last week, Las Vegas Sands (NYSE:LVS) was sued for $375 million by Asian American Entertainment Corporation over the way it won the gaming license to operate in the region. According to Asian American Entertainment, LVS breached its contract by teaming up with Galaxy Entertainment and submitting a proposal for a Venetian-style casino resort that was almost identical to the one filed in its bid with Asian American, which was its first partner in the proposed project.
Asian American is controlled by Taiwanese-American businessman Shi Sheng Hao. [1] LVS’s subsidiary Sands China, which operates three casinos in Macau, called Asian American’s legal case “meritless.”
It is too early to comment on the potential effects of this case on LVS; however, we believe this wouldn’t have much impact on LVS’s operations in Macau. LVS is an established player in the region and enjoys a dominant position in Macau. It operates through the Venetian Macao, the Sands Macao and the Four Seasons Hotel. According to analysts, LVS witnessed increased market share gains in 2011.
LVS’s stock price has remained unaffected with this news and has rather witnessed a growth of 6% approximately in the past week. We have a Trefis price estimate of $57.48 for LVS, which is in-line with the current market price.
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Notes:- Las Vegas Sands Corp. sued in Macau for $375 million by ex-partner, syracuse.com [↩]
