Adelson gets some laughs; Hong Kong regulators investigate Sands China

Las Vegas Sands Corp. boss Sheldon Adelson got a few laughs with part of his “sit-down” comedy routine at the March 28 J.P. Morgan Gaming, Lodging, Restaurant & Leisure Management Forum.

“You’d never think that I come from a poor family, but I do,” Adelson said. “And I appreciate everything. My challenge is to passing that feeling on my kids. They were allowed to join a club that I wasn’t allowed to join, called the lucky sperm club.”

After some laughter, the moderator said, “I never realized this was going to be a rated-R  fireside chat session. But this is fun.”

Adelson would add, “Well I’m applying to the Venetian to entertain as a sit-down comedian … because I can’t stand very well.”

Then the subject turned to controversies associated with the wrongful termination litigation filed by former Sands China executive Steve Jacobs. The fun seemed to fade.

The humor was replaced by an intriguing admission about casino ownership in Macau. Adelson said the controversial junket representatives responsible for generating so many good players for the casinos “run Macau.”

Adelson’s remark will surely reverberate through the gaming community, where most licensees are sensitive to even rumors that they might not be running their own casinos.

Las Vegas Sands has flatly denied any wrongdoing in the Jacobs action and has called the litigant a “liar” and the litigation “extortion.” Adelson was recently sued by Jacobs for defamation in Southern Nevada. Adelson previously sued Jacobs for defamation in Macau.

“A former employee that’s caused us a few little heartaches, Steve Jacobs, one of the reasons why we fired him, we told him not to get involved with direct premium players the way he wanted to,” Adelson said. “Our policy is that the junket reps own Macau.”

He was talking about how the junket representatives not only bring in customers, but also handle some credit. Adelson said he plans to cater to them and keep them happy, and accused Jacobs of alienating them. In Adelson’s words, Jacobs “ticked off all the junket reps.”

Would that included the ones Jacobs has alleged were connected to the Triads?

“Now we got to build back the relationship,” Adelson said. “We’re doing everything we can. For instance, in (casino development) lots five and six we’re lining up all the junket reps that are worthwhile lining up and we’re telling them, listen, however you want your room done, you either send in your designer, we’ll send you our designer, design the room the way you want it. And that’s the kind of attention they want. They want to be recognized as more than just the middleman to bring in players and provide the credit.  They want some warm and fuzzy feelings. And we should be giving it to them because that’s what suppliers do to customers.

“So we’re building back that confidence that we built up earlier on the VIP side.”

Although he admitted he doesn’t vouch for the character of all the junket reps, he said, “You know, some of these guys are very nice guys.”

There are plenty more quotable moments during Adelson’s interview. It’s available on the Sands website.

Meanwhile, Sands China Ltd. On Thursday said it was being investigated by Hong Kong’s securities regulators.

According to The Wall Street Journal website, Sands China said Thursday it is being investigated by Hong Kong’s “securities regulator for breaches of provisions of the Securities and Futures Ordinance.”

In its annual report, LVSC previously admitted it had received a document subpoena from the Securities and Exchange Commission, which is looking into questions related to the Foreign Corrupt Practices Act. The Department of Justice is also looking into the company. Reuters recently reported the FBI is investigating the LVSC allegations, and in Nevada the Gaming Control Board is also monitoring.

To recap: The LVSC and Sands China have drawn the investigative scrutiny of Hong Kong securities authorities, Macau gaming regulators, the Securities and Exchange Commission, the Department of Justice, the FBI, and the Nevada Gaming Control Board.

Sands has issued repeated denials and has stated its troubles stem from specious allegations made by Jacobs.