Inside Asian Gaming

INSIDE ASIAN GAMING | November 2010 36 Macau Policy S uggestions in late October that Sands China had finally managed to do a deal with the Macau government to get much needed workers onto its Cotai 5 & 6 extension seemed to mark a turning point in the bilateral relationship. There was talk of imminent government approval for 5,000 non-Macau workers to be brought on site by the contractors hired by Sands China. Given officials had previously announced a policy allowing outside hiring only on a one-to-one basis (i.e. one local for every migrant employed), it looked as much a political gesture of goodwill by the government towards Las Vegas Sands Corp (LVS) and Sands China as the tidying up of a bureaucratic issue. Michael Leven, Acting Chief Executive of Sands China, said back in July the company had about 1,300 construction workers on site—half of what it needed at that stage. The timing, therefore, of former Sands China CEO Steve Jacobs’ lawsuit against the company alleging breach of contract is particularly unfortunate. It claims (allegations strongly denied by Sands China and LVS) that Mr Jacobs was asked to act “illegally” by organising secret investigations into the business and financial affairs of high-ranking members of the Macau government. The deposition filed on 20th October in a Las Vegas, Nevada, court, says the aim was that any negative information obtained could be used to exert ‘leverage’ in order to thwart government regulations and/or initiatives viewed as adverse to LVS’s interests. “While Las Vegas Sands normally does not comment on legal matters, we categorically deny these baseless and inflammatory allegations. From here on out, we will let the process work its way through the appropriate legal system,” Sands China said in a prepared statement. Shared interests Although the episode can hardly be seen as helpful in the effort to cultivate the relationship between the Macau government and Sands China, it doesn’t automatically follow that the allegations will make things worse. It’s in the interests of both parties to be on good terms, even if, strategically speaking, both sides have different short- term goals. The concern of the government is to prevent the Macau market growing too big too quickly. The market is already on course Cotai Conundrum There are signs of improving relations between LVS and Macau officials— but no clarity yet on Cotai 5 and 6’s opening