Over the weekend there was a news story about the Bethlehem (PA) casino, built on the site of the former Bethlehem Steel- once a symbol of America’s industrial might.
It was supposed to be a “destination resort casino” yet they opened the casino but never even finished building the conference center, mall and hotel where all the supposed jobs were to be created.
The phrase “resort casino” is nothing more than a political frame to artificially inflate public support for the scheme and veil the most predatory business model in America today.
Las Vegas Sands Corp. seeking to sell Sands Casino Resort Bethlehem
BETHLEHEM Las Vegas Sands Corp. is seeking to sell its Bethlehem casino, only nine months after its opening, according to a person with direct knowledge of high-level discussions.
The company's top management has been disappointed with the facility's financial returns and would rather focus its efforts in Asia, where the company is developing megaresorts in Singapore and Macau, said the source, who spoke on the condition of anonymity. Las Vegas Sands Corp. is hoping to sell the South Side slots parlor before possibly being required by the state to complete the property's partially finished hotel, mall and conference center, the source said.
Las Vegas Sands spokesman Ron Reese declined Friday to discuss the potential for a sale but said the company is hopeful for better financial returns from Bethlehem.
"The company's focus right now is to get the property to perform better," Reese said. "We're in the process of initiating some new marketing programs and looking forward to getting table games and overall working to improve the performance of the property."
Las Vegas Sands released its 2009 fourth-quarter report last week, which showed Sands Bethlehem with an operating loss of $2.1 million on revenue of $57.5 million. Company President and Chief Operational Officer Michael Leven, during a conference call on the report, said the company was somewhat disappointed in Bethlehem's numbers but it still had high hopes for the site's potential. Most of the conference call focused on the company's projects in Asia.
Sands Bethlehem President Robert DeSalvio on Friday declined to add to Reese's comments.
Mayor says he's unaware of any sale intentions
Bethlehem Mayor John Callahan said he was unaware of any sale discussions, though city council President Robert Donchez said he had heard rumors.
"I would be disappointed if the Sands sells," Donchez said. "They've been a good corporate citizen; they've worked with many organizations in the community."
With its close access to New York and New Jersey customers and its $743 million price tag -- the highest for a Pennsylvania casino -- Sands Casino Resort Bethlehem had expected to be a major success among Pennsylvania casinos. But things haven't gone according to plan for the casino. The property's hotel, mall and conference center had been scheduled to open with the casino May 22, but construction on the three amenities stopped in October 2008 and hasn't resumed.
Sands also had planned to add 2,000 slot machines to its 3,000-machine offering in November but instead added only another 250. Company officials had said the allowance of table games at Pennsylvania casinos would restart, and possibly expand, the hotel, mall and conference center projects, but Leven said Sands would wait until the end of the year before even considering resuming those projects. Sands needs about $100 million to finish the 300-room hotel, 200,000-square-foot mall and 46,000-square-foot conference center.
Casino hotel completion 'critically important'
Callahan asked the Pennsylvania Gaming Control Board earlier this month to make the casino's license renewal contingent upon completing the hotel, mall and conference center. Bethlehem City Council is scheduled to consider a resolution supporting Callahan's request Tuesday.
"If they were to sell, it would be critically important that whoever bought it complete the project," Donchez said. "It's just critically important that the hotel become completed and that project to become more viable than it is now."
Gaming control board spokesman Richard McGarvey said Las Vegas Sands would have to file an application with the board to transfer ownership, which the company has not done. The board would investigate the new owners and hold a public hearing to rule on any transfer, he said.
Rivers Casino outside of Pittsburgh and Harrah's Chester Casino & Racetrack both have transferred ownership, McGarvey said.
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