Shares of Las Vegas Sands (LVS) - Get Report fell Wednesday after a media report said its Singapore casino hired a law firm to investigate employee transfers of more than $1 billion of gamblers’ money to third parties.
Knowledgeable sources told Bloomberg of the matter. They said the prominent law firm Davinder Singh Chambers will do the inquiry.
The move came after Singapore police started looking into third-party transfers at Marina Bay Sands casino in Singapore, the sources said.
Marina Bay Sands said it thoroughly reviewed the issue and found that no customer’s money was transferred contrary to his/her consent, Bloomberg reports.
Las Vegas Sands recently traded at $49.95, down 3.7%. The stock has fallen 28% year to date, as the coronavirus pandemic closed its facilities and kept customers at home.
Last year a patron sued Sands, claiming that S$9.1 million ($6.7 million) belonging to him was transferred to other gamblers without his approval, according to Bloomberg. The parties settled in June, with the casino reimbursing everything.
Morningstar analyst Dan Wasiolek offered positive commentary on Sands in a July report.
“Although the coronavirus pandemic stands to materially affect near-term travel and leisure demand, and Las Vegas Sands is no longer pursuing a gaming license in Japan, we view the company as well positioned for long-term growth in the gaming industry," he wrote.
That's "because of the attractive long-term growth opportunity of Macao (59% of 2019 earnings before interest, taxes, depreciation and amortization) and Sands' dominant mass and non-gaming position on the attractive Cotai Strip,” he wrote.
In addition, “Sands' position in profitable Singapore … solidifies our view of the firm's long-term growth.”
Wasiolek put fair value for the stock at $60.