Sands China has renewed for one year a Shared Services Agreement with its parent company Las Vegas Sands (LVS) under which the latter provides various marketing and transportation services on behalf of the Macau-based entity.
The 2025 Renewal Agreement, which runs from 1 January to 31 December 2025, sees the LVS Group agree to provide marketing targeting casino patrons and loyalty card members of the group who may also wish to visit Macau, and to provide services related to the marketing, public relations, sales, leasing and management of the integrated resorts and properties owned or operated by Sands China.
It also sets the annual cap Sands China will pay Las Vegas Sands for such services at US$12.4 million, slightly lower than the US$12.9 million cap set for 2024. Sands China noted, however, that the fees paid to LVS for the first six months of 2024 had reached only US$4.4 million. It previously paid US$8.7 million in FY23 and US$2.6 million in COVID-affected FY2022.
Also renewed are agreements related to transportation services, to be calculated on a cost basis. These services specifically relate to the use of all forms of transportation – including vehicles, vessels, trains and aircraft – owned or available to the group. Costs include the actual cost of the transportation and related services provided to patrons to visit Sands China properties, including the actual salary and benefits, employment-related expenses and statutory costs for the relevant employees and the hours worked by them in providing such services, as well as the cost of fuel, oil, repair and maintenance, insurance and other related operational costs.
The annual cap for these services has been set at US$12.6 million for 2025, down from US$15.8 million in 2024. Sands China said it paid LVS US$4.9 million for transportation services in 1H24 versus US$8.6 million in FY23 and US$1.4 million in FY22.
Explaining the reasons for signing a Shared Services Agreement, Sands China said it “regulates the relationship of the Group and the LVS Group with respect to the provision of the shared services between the Group and the LVS Group.”
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