Audit Integrity recently named Las Vegas Sands Corporation as one of the top twenty corporations that are on the fast-track towards bankruptcy. As a political advisor, and Las Vegas inside information writer, I can’t help but think about what might happen to the Las Vegas landscape if a Las Vegas Sands bankruptcy becomes a reality.
First off, I should point out what has led to the chance of a Las Vegas Sands bankruptcy. Las Vegas Sands (which is best known for owning The Venetian and The Palazzo in Las Vegas) has opened three new casinos around the world in the last three years (this is huge for a casino company). On top of that, it has purchased aircraft to ship Asian gamblers to Las Vegas at a great expense. Obviously, the economy has not helped.
With the hard toll that the economy has taken on Las Vegas, more bad news such as a Las Vegas Sands bankruptcy could be devastating. While Las Vegas is on a course towards recovery, any steps back could deter some potential travelers and investors from making the trip to Sin City.
In the past, we have seen reservations plummet at some properties that have faced bankruptcies or closure. The rumors of a possible closure of Imperial Palace almost led to just that. The reservations slumped for about two months and almost sent Imperial Palace over the edge. The same could happen with a Las Vegas Sands bankruptcy. This could cause for major setbacks at locations like The Venetian.
A Las Vegas Sands bankruptcy could infuse more tourist dollars into Las Vegas properties such as the Bellagio and Wynn which are always competing for The Venetian’s clientele. The loss of just a few high-rollers to the competition could prove deadly for The Venetian.
If a Las Vegas Sands bankruptcy is emerged from, chances are good that many will remember it and be leery about investing for many years. One of the issues that Donald Trump has had for years is that every time he files for bankruptcy for one of his casinos, he has issues getting the backing of new investors (even a few years after emerging).
There is a lot that could happen from a Las Vegas Sands bankruptcy. The problem is that there are too many negatives that could go wrong. Granted, with the mounting debt, not filing for bankruptcy could cause for more negative connotations and results than doing so.