Of all the well-deserved testimonials to the greatness of Sheldon Adelson, here’s one not mentioned: On the day he died, the stock price of Las Vegas Sands edged up 0.37 percent.
When the controlling founder of a company dies, especially with little advance notice, it’s common for the stock to react.
If the founder was considered integral to his company and its future success, it’s common for the stock to take a hit as investors flee what they fear is a rudderless ship.
If the founder was considered an ossified drag on the company, the stock often rises, as investors see the way clear for newer and fresher management to capitalize on the company’s assets.
That the stock of Las Vegas Sands did not react was testament by investors that Sheldon Adelson had built a company with a winning strategy and strong execution run by capable managers.
No business founder could ask for a better legacy.
Many have favorite memories of Sheldon Adelson. My favorite was sitting with several Fantini Research colleagues in the office of former Sands COO and lifelong Adelson friend Mike Leven, discussing the company. Without notice, Adelson walked in, plopped down in a chair in the middle of this small gathering, and immediately began to critique our newsletter and tell us how we could do better.
It was classic Sheldon Adelson: personal, commanding, blunt and brilliantly insightful.
But this is the world of business and investment. Soon enough, the subject will turn away from reminiscences about Adelson, about his extraordinary contributions in inventing the integrated resort and almost single-handedly transforming Macau from a gambling den into an international tourism destination.
Instead, we will focus on the future of Las Vegas Sands. Will the company’s Vegas properties be sold? Over time, will even its very capable management lose the competitive edge provided by the singular vision and bulldog determination of the founder? Will the Adelson family eventually lose interest in running Las Vegas Sands and slowly sell out, as Kirk Kerkorian’s family trust did at MGM Resorts? Will the powers-that-be in Macau, sensing an opportunity, decide that the Las Vegas Sands gambling concession would better be owned by Chinese business interests?
Time will tell. Meanwhile, it may be worth noting that Adelson’s departure leaves Las Vegas with one less visionary giant in the mold of Kerkorian and Steve Wynn.
Still, despite those who long for the days before a corporate Las Vegas, plenty of casino owners remain whose will and personalities matter. Michael Gaughan still presides at South Point, proving that doing right by the gambling customer is still the best strategy for success. Bill Boyd remains at Boyd Gaming. Frank and Lorenzo Fertitta still run the company that did for the Las Vegas locals market what Adelson did for Cotai in Macau. Phil Ruffin still runs a private casino company that bears the stamp of the owner. And Blake Sartini’s Golden Entertainment is still a company run by a man, not an algorithm.
And yet another generation rises: Greg Carlin at Rush Street Gaming and Rush Street Interactive. Tilman Fertitta at Golden Nugget. Jason Robbins at DraftKings, among others.
They are evidence that entrepreneurship and vision remain in the gaming industry, even as it evolves beyond Las Vegas and into the digital world.
