Inside Asian Gaming

October 2009 | INSIDE ASIAN GAMING 47 Briefs Kerkorian and Las Vegas Sands Corp (LVS) founder Sheldon Adelson, seeing their personal wealth take multibillion- dollar beatings during the past year, due primarily to the stock market’s collapse in 2008 and early 2009. Adelson, 76, who is chairman and chief executive officer of LVS, is the highest-ranking Nevada resident on the list, coming in at No. 26 with a net worth of US$9 billion. By comparison, Microsoft Corp founder Bill Gates tops the Forbes list with a net worth of US$50 billion, followed by financier Warren Buffett, who comes in at No. 2 with $40 billion. Adelson began 2008 as the third-richest person, but Forbes refigured its list later in the year and Adelson fell to 15th with a net worth of US$15 billion. In March, when Forbes released its top billionaire list, Adelson was listed with a net worth of $3.4 billion. “Rough year for Sin City’s richest man,” Forbes reported. The magazine said the “cabdriver’s son” saw his fortune drop by $19 billion in two years, due primarily to Las Vegas Sands’ declining stock price. The casino operator lost 90% of its value on the NewYork Stock Exchange from its 2007 highs when the company’s stock traded for close to $150 a share. LVS avoided filing bankruptcy nearly a year ago when Adelson invested US$1 billion of his own money into the company to make a debt payment. “Once the markets start believing our company won’t go into bankruptcy, our stock will be up to $75 a share again,” Adelson told Forbes. Kerkorian, the 92-year-old Los Angeles billionaire who owns about 43% of MGM Mirage, took the largest tumble of all gaming executives on the list, falling from 27th in 2008 with US$11.2 billion, to 97th in 2009 with a net worth of $3 billion. MGM Mirage’s declining stock since the end of 2007 reduced the value of Kerkorian’s holdings in the company from US$11 billion down to $1.5 billion. Other Kerkorian investments in the oil and automotive industries also suffered throughout the year. Wynn Resorts Ltd. Chairman Steve Wynn fell from 118th with US$3.4 billion to 141st with $2.3 billion. “Tough year for the king of Las Vegas,” Forbes reported. The biggest challenge, according to the magazine, was opening the $2.3 billion Encore last December in the middle of the recession. Meanwhile, Wynn cashed out more than $100 million in shares of Wynn Resorts that will be used as part of his divorce settlement with his wife, Elaine. Other gaming industry executives making the list included former Stratosphere owner Carl Icahn, who recently became majority shareholder of Tropicana Entertainment. Icahn was 22nd with US$10.5 billion in net worth. New York billionaire Donald Trump, who owns the Trump International Las Vegas and 30% of the company that controls three Atlantic City casinos, was 158th on the list with US$2 billion in net worth. Treasure Island owner Phil Ruffin, No. 193 with $1.85 billion, and Silverton owner Ed Roski Jr, No. 236 with $1.5 billion, rounded out the list of gaming executives. Hilton Hotels scion Barron Hilton, who earned US$800 million when the company was sold to Blackstone in 2007 and $300 million from the sale of Harrah’s Entertainment in 2008, is tied withWynn for 141st on the list with $2.3 billion. Trump, bondholders increase casino offers Donald Trump is offering to pay bondholders an extra US$13.9 million in cash in hopes of regaining control of the bankrupt casinos that he no longer owns but still bear his name, according to The Press of Atlantic City . Bondholders, however, have made their own move to buy the company, increasing their offer from US$175 million to $225 million in a bidding war with the celebrity CEO and star of the NBC reality show ‘The Apprentice.’ US Bankruptcy Court Judge Judith H. Wizmur scheduled January 20th as the first of five possible days of hearings to select the best plan to help the company emerge from Chapter 11 bankruptcy protection. Wizmur is giving both sides plenty of time to work out a deal instead of forcing her to pick one plan over another and possibly igniting all- new litigation that could drag out the bankruptcy for months. CityCenter condo prices cut A much awaited 30% price reduction in CityCenter’s luxury condominium offerings was announced early October by developers of the US$8.5 billion project. The move comes as potential buyers of the 2,400 condominium units at three of CityCenter’s projects threatened possible lawsuits against developers MGM Mirage and Dubai World. Prices that purchasers agreed upon a few years ago no longer reflect the current market, where sales of high-rise condominiums in Las Vegas have been on life-support. The price reductions cover The Residences at Mandarin Oriental, Veer Towers and Vdara Condo Hotel. “We believe that in this economic climate this price reduction is an appropriate step to take on behalf of our buyers so as to provide them greater flexibility in closing on their residences,” said MGM Mirage chief design and construction officer Bobby Baldwin, who serves as the president and chief executive officer of CityCenter. Kirk Kerkorian Donald Trump CityCenter