According to Chinese gambling laws, the only place in China where gambling is legal is Macau. This region saw a massive influx of revenue and prosperity for years as the gambling market boomed. As was the case with most of the rest of the world, however, global hard times struck last year and even the gambling stronghold in China felt the repercussions.
China’s quick rebound from the global economic downturn once again gave a boost to the region and provided hope for investors everywhere. One company with invested interests in Macau is Las Vegas Sands Corporation.
Due to the economic crisis, the Sands Corporation had to postpone projects that were going on in the region. Of course, with so much money invested, there was no way that the company was going to abandon projects. A simple solution with a lot of hope was proposed – raising a massive amount of money through the selling of the company’s stock in Asian markets.
Though the idea sounded fine and dandy, a shadow of doubt pushed its way to the spotlight this Monday. Hoping to raise a massive $3.3 billion, Sands was extremely disappointed at raising only $2.5 billion. What was really shocking about the sale was that the stock dropped 13.3% on its first day in the Hong Kong stock exchange.
The proceeds that were raised will, in large, go towards the massive debt that Las Vegas Sands Corporation has accrued. $500 million will be set aside to continue work on the ongoing projects in the Chinese enclave. Having not raised the hoped amount, the Sands Corporation is on a very tight budget and projections for when projects will be finished are unsure.
While land-based gambling havens are experiencing instability, internet gambling in China is much more stable. Despite the government’s initiatives to block international sites and the refusal to grant licenses to online casinos, there are many online gambling sites in China which function in Chinese and accept Yuan (RMB). As economies strengthen, so too will the gambling industry.