Las Vegas has always been about failure and redemption. You can lose it all one night and make it back the next with a lucky roll of the dice or a magical spin of the roulette wheel.
That's, of course, the idealized way to view Sin City. Everyone remembers their big wins more than they do their crushing losses. The reality, however, is that in the long run, the house always wins.
Sure, you might get an exciting night where you score a big payday, but that's the exception, not the rule. That does not change the romanticized notion that anything can happen and that Las Vegas is a city where dreams can come true.
Las Vegas can bring redemption for gamblers -- though that's not the likely outcome -- and now it might bring redemption for a casino operator that once led Caesars Entertainment (CZR) into bankruptcy. That operator has now been cleared to a return to owning a major property on the Las Vegas Strip which could bring about redemption or another bust.
Image source: Daniel Kline/TheStreet.
The Venetian Has a New Owner
Apollo Global Management (APO) agreed to buy the The Venetian Resort and Sands Expo and Convention Center Operating Company from from Las Vegas Sands Corporation (LVS) last March. Now, the Las Vegas Gaming Commission has approved the deal unanimously (with one commissioner abstaining due to business conflicts) clearing the way for the transaction to take place, according to the Las Vegas Review-Journal.
The new owner of The Venetian formerlly owned Caesars, filing bankruptcy in 2008 during the recession caused by the housing crisis. That did not seem like a major concern, but they were worried about one thing.
"Commissioners spent more than two hours peppering David Sambur, co-head of private equity firm Apollo, and his team with questions about the transaction, focusing primarily on any future role Apollo founder and former CEO Leon Black could have with the company, and on Apollo’s role as the owner and operator of Caesars Entertainment.," the newspaper reported.
Black resigned as Apollo CEO roughly a year ago " after it was disclosed he had associations with convicted sex offender Jeffrey Epstein." The former CEO still owns nearly 12% of the company, but he has not made an attempt to return to a management position,
The Nevada Gaming Commission did set a condition that Apollo would have to not fit the commission if Black, or an associate, try to join Apollo's board of directors.
The Venetian Has a New Owner
Las Vegas Sands plans to exit the Las Vegas market to focus on its properties in Macau. Apollo will pay $2.25 billion for the operating company of The Venetian. VICI Properties will buy the underlying land and real estate assets of The Venetian for $4 billion.
At the time these transactions close, Apollo Funds will enter into a long-term, triple net lease agreement for The Venetian with VICI.
"The Venetian is America’s premier integrated resort, with an unrivaled set of amenities to serve guests across hospitality, meeting events, gaming, and entertainment -- categories that we believe are well positioned for strong recovery and long-term growth," said Apollo Partner Alex van Hoek in a press release.
He also added that Apollo sees "significant opportunity to invest in and accelerate its growth."
Las Vegas Sands was previously run by Sheldon Adelson, who passed away in January, 2021. Adelson bought the former Sands Hotel, which would become The Venetian after the original property was demolished in 1996.
"When he bought the Sands Hotel in 1989, he was thinking convention space, not just gambling, would make money. It did. He built a convention hall to keep his hotel rooms full on weekdays and others soon followed the business model. Meanwhile, he worked to replicate the Strip in Macao, the only place in China where casino gambling is legal, and his wealth grew exponentially," the Associated Press reported.
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