Las Vegas Sands boss Sheldon Adelson will not replace departing Sands China CEO Edward Tracy but will take the reins of the company’s Macau subsidiary himself, and at a time when the world’s largest casino market is in the throes of an epic slump.
A statement released by Hong Kong-listed Sands China (1928) on Friday said the 81-year-old billionaire will assume the chief executive’s role on 6th March, the effective date of Mr Tracy’s departure. LVS Chief Operating Officer Rob Goldstein will become interim president. Mr Adelson already serves as Sands China’s chairman.
Mr Tracy, whose retirement was announced on 16th January, had been with Sands China since July 2010 and had held the top job since July 2011, leading the operation in three years to dominance of Macau’s burgeoning mass market. His tenure saw the multi-hotel and casino complex known as Sands Cotai Central opened, and the company’s newest resort, the US$2.7 billion Parisian Macao, slated to open in phases beginning the end of this year, well on the way to completion.
“Business strategy has always been decided by Mr Adelson all this while, so in terms of strategy, I wouldn’t expect any change,” said Goh Shengyong, a Hong Kong-based gaming analyst at BNP Paribas. “It would be more of realigning and getting Macau and Singapore to report directly to Vegas.”
Mr Tracy, 62, will stay on as a consultant, the company said last week, adding that the executive had no disagreement with the company.
Marina Bay Sands in Singapore, which drives 20% or more of LVS’ revenue, is not expected to see a management change, Mr Goh told Bloomberg.
Macau, which contributes almost two-thirds of LVS’ revenue, suffered its first annual drop in aggregate gaming revenue in 2014, mainly the result of a dramatic fall-off in VIP play, which historically has comprised 65% or more of the market’s world-leading casino take of $41 billion-plus. An aggressive central government crackdown on corruption and illicit money flows, combined with slowing growth in the Chinese economy, have been cited as leading causes.