Two Way Hard Three | Las Vegas Casino & Design Blog

May 4, 2006

Las Vegas Sands Announces Quarterly Results

Posted by Hunter

Just days after competitors MGM MIRAGE and Wynn Resorts, Las Vegas Sands, operators of the Venetian in Las Vegas and the Sands Macau in Macau, China have announced their results.

Quarterly revenue is up to $503MM, based largely on the Macau property with net income of $134MM.

For details, see this release:

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Read archived comments (3 so far)
May 6, 2006 7:22 AM Posted by Mike P.

Does anybody know what "Rolling chip" and "Non-rolling chip" table games are? Sands reports drop and win percentages for both from Macau, but not from Vegas. I don't think I've seen these terms used by U.S. based casino operators.

The non-rolling chip games have win percentages in line with what casino operators usually report -- Sands reported about 19% win on over $1 billion (!) drop for just the first quarter. No wonder everyone wants a Macau presence.

Mike P.

May 6, 2006 2:40 PM Posted by detroit1051

Mike P, I first noticed the terms "Rolling and non-Rolling chips" in LVS' 10-Q. This is what they said, but I still don't understand the need for distinction.

"Casino revenue measurements for Macao: We view Macao table games as being segregated into two groups, consistent with the Macao market's convention: 1) Rolling Chip play (all VIP play) and 2) Non-Rolling Chip play, (mostly non-VIP players). The volume measurement for Rolling Chip play is gaming chips wagered. The volume measurement for Non-Rolling Chip is table games drop as described above. Rolling Chip volume and Non-Rolling Chip volume are not equivalent; because Rolling Chip volume is a measure of amounts wagered versus dropped, Rolling Chip volume is substantially higher than drop. Slot handle at the Sands Macao is the gross amount wagered or coin placed into slot machines in aggregate for the period cited.

We view Rolling Chip table games win as a percentage of Rolling Chip volume and we view Non-Rolling Chip table games win as a percentage of drop. Win or hold percentage represents the percentage of Rolling Chip volume, Non-Rolling Chip drop or slot handle that is won by the casino and recorded as casino revenue. Based upon our mix of table games in Macao, our Rolling Chip table games win percentage (calculated before discounts and commissions) as measured as a percentage of Rolling Chip volume is expected to be approximately 2.5% and our Non-Rolling Chip play table games are expected to produce a statistical average table win percentage as measured as a percentage of table game drop of 15.0% to 16.0%. Like in Las Vegas, our Macao slot machines produce a statistical average slot machine win percentage as measured as a percentage of slot machine handle generally between 6.0% and 7.0%."

Maybe Chris in Hong Kong can explain it.

May 7, 2006 7:36 AM Posted by Mike P.

Thanks! That actually does help.

I read this on another forum and have no first hand knowledge of my own -- apparently VIPs in Macau play with dead chips, get paid off when they cash out in live chips, and also get a percentage of their total action back. That rebate on their action must explain why casinos track the total volume of VIP betting. It doesn't really explain why they don't just track the amount of VIP cash that walks in and the amount that walks back out, but at least I understand the term now.

This press release makes interesting reading, especially compared to Wynn's results. Sands is getting about half of its cash flow and 3/4 of its casino revenues from Macau. Wynn's Vegas casino has been amazingly successful, but he really needs Macau to work.