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INSIDE GAMING: Sands bets against paying settlement

Las Vegas Sands Corp., faced with paying a lawsuit judgment of $58.6 million to a Hong Kong businessman, told investors it hasn't recorded any reserves or contingencies for the legal matter.

Why? The casino operator doesn't think it will ever have to settle up.

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  • "The company believes this potential loss is not probable or estimable," Las Vegas Sands said in a 10-Q filing with the Securities and Exchange Commission last month.

    A Clark County District Court jury on May 24 awarded Richard Suen a $43.8 million verdict following a six-week trial. The trial judge tacked on $14.8 million in interest.

    Suen said he was stiffed by the casino operator when he sought payment for helping the company win a Macau gaming license. Las Vegas Sands is appealing the verdict.

    The company's stance shouldn't be a surprise. In its May 2007 10-Q, Las Vegas Sands told investors Suen's chances of winning the lawsuit were "remote."

    ***

    Bally Technologies' recent fourth-quarter earnings conference call took on a United Nations feel.

    Company Chief Operating Officer Gavin Isaacs hails from Sydney, Australia. Ramesh Srinivasan, executive vice president of Bally's systems division, is a native of India. Both noted the international flair.

    "Overall, the team is learning the finer points of cricket and are being educated in the art of Australian slang," Isaacs said.

    Added Srinivasan, "Between listening to Australian slangs and the thick Indian accents, people are going crazy here. Bally is becoming a global corporation, for sure."

    ***

    Oppenheimer analyst David Katz believes slot machine giant International Game Technology is facing tough times.

    "We expect market share dynamics to continue favoring Bally Technologies and WMS Industries at the expense of IGT," Katz told investors.

    He said casino operators outside the Strip will modestly replace older IGT games with Bally and WMS products.

    ***

    "Soundstage" might be a good addition to Red Rock Resort's name. Nearly a dozen movies, television shows and music videos have been taped at the Station Casinos property since it opened in April 2006.

    Episodes of the Bravo Network's "Real Housewives of Orange County" were taped in August and will air this year.

    In the past, Red Rock has been the setting for segments of Craig Ferguson's "Late Late Show," "Hell's Kitchen," the music video "Body on Me" by hip-hop artist Nelly that featured Ashanti and Akon, and VH1's "Rock of Love with Bret Michaels."

    The movie "21" gave Red Rock a big-screen profile.

    Howard Stutz's Inside Gaming column appears Sundays. E-mail him at hstutz@reviewjournal.com or call 702-477-3871.



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    casinocon wrote on August 31, 2008 05:22 PM: No surprise WMS will take major market share from IGT, I've been saying that for years. All you have to do is play the slot machines to realize WMS puts out a far superior and much more entertaining product. Video Poker has saved IGT, but not for long.


    ex gambler wrote on August 31, 2008 10:50 AM: Sheldon won't live another year. The scumbag is on his last legs now.


    Mephistopheles wrote on August 31, 2008 09:12 AM: Crooks is right, actually the entire gambling industry is state sanction legalized robbery against the middle and poor class. How do you feel sheldon? You know they say in hell that the inhabitants are forced to relive the lives of their victims over and over for eternity. So sheldon and his compatriots can look forward to committing suicide, breaking up families, infinite emotional anguish, and all the other trappings that go along with their rotten occupations. Well, see ya next year Sheldon;)


    JLOKC wrote on August 31, 2008 09:06 AM: Sands has been in numerous lawsuits over the years. I'm guessing they never make any provisions for possible loss, and refer to all opponent chances of success as remote.


    Big Vegas Fan wrote on August 31, 2008 07:41 AM: Wasn't Adelson and the Venetian the same guys that fixed a raffle at the Venetian so a high roller could win it? In my opinion, this guy and company seems to be crooked!


    Ted wrote on August 31, 2008 06:57 AM: Why should anyone be surprised to learn that Sheldon and the other crooks at Las Vegas Sands have refused to pay Suen what the courts have said they owe him? This is just business as usual. Ask any number of valley contractors and sub-contractors.