Sands China renews services agreement with LVS
The renewal is for three years starting in 2021, extending beyond the casino licence tenders due in 2022.
Macau.- Sands China has renewed its shared services agreement with its US parent company, Las Vegas Sands (LVS).
The new agreement is for a term of three years commencing on January 1, 2021 and ending on December 31, 2023. This would go beyond the 2022 re-tender for Macau’s casino licences, which the city has said it intends to proceed with as planned.
The contract is for marketing and retail leasing services as well as management and marketing services, Sands China said in a filing to the Stock Exchange of Hong Kong.
LVS provides joint international marketing services targeting VIP players, premium players and Sands Rewards Club members. It includes hotel, convention, exhibition, meetings and entertainment sales, marketing and public relations services.
Payment will be calculated on a cost basis with annual caps set at US$10.2m for the first year of the new agreement, US$11.2m for the second and US$12.2m for the last.
Sands China’s operations have been heavily hit by the Covid-19 pandemic and resulting travel restrictions. It reported net losses of MOP4.4bn (US$562m) for the third quarter of 2020.
