Las Vegas Sands Increases Bad Debt Reserve 166.6%
Gamblers in China are not paying their debts.
October 21, 2022
Much has been made of the credit loss reserve increases at the big banks and American Express (AXP). Overlooked in comparison though is the warning Las Vegas Sands (LVS) issued after the market closed Friday. In its latest quarterly filing, Las Vegas Sands warned gamblers aren’t spying their debts. The company increased its credit loss reserve to $8 million, or 166.6% as it becomes harder to collect:
“The $5 million increase was driven by increased provision for the aging of patron receivables at our Marina Bay Sands and Macao operations.”
Though the reserve can fluctuate over short periods of time due to factors specific to patrons who owe it money, Las Vegas Sands suggested it may have extended too much credit to the wrong people.
Related: MGM, CZR, WYNN, MLCO
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