NGCB Approves Sales of Las Vegas Sands Properties to Apollo Global

Apollo Global Management is a step closer to returning to the Las Vegas Strip. The global investment firm has been targeting the gaming industry for years, but previous access to the Las Vegas casino scene didn’t go well. Apollo is working on a deal with Las Vegas Sands (LVS) to purchase three of the latter’s Vegas properties and has convinced the Nevada Gaming Control Board (NGCB) that it is in a better position than it was previously. The board signed off on the arrangement, although the Nevada Gaming Commission (NGC) will make the final decision.

Apollo Determined to Grow Casino Footprint

NGCB Chairman Brin Gibbons on Wednesday did everything he could to assure his fellow commissioners, and anyone watching the hearing, that Apollo 2.0, the company’s second venture into Strip casinos, does not have to end in bankruptcy. He also made sure that everyone knew that Leon Black, the founder of the private equity firm, is no longer involved with the company. Black resigned last year after being exposed as having ties to Jeffrey Epstein.

Black also has his own legal issues, and Gibson called him “the elephant in the room.” The chairman added, “He’s well known. There’s a lot of discussion about him. So, he is no longer on the board of directors or a member of this company.”

The board then unanimously approved the license for Apollo. It will be presented to the NGC next Wednesday.

Gaming investigators were uncomfortable about proceeding with the Apollo deal, according to an unidentified state official. However, Gibson overruled them. Gibson, who worked briefly for Apollo’s attorney Frank Schreck in 2020, was apparently directed by Nevada Governor Steve Sisolak to move the Apollo-LVS deal forward.

Apollo States Its Case

Apollo co-head of private equity David Sambur told the NGCB that spending “six and a quarter billion dollars in a property in Las Vegas” shows the company’s standing. Spending it during a global pandemic only reinforces its position.

“Our business is to raise money in private equity. We do this approximately every four to five years. David Sambur, Apollo executive, explained that we then buy businesses with this money. We then partner with board members, with the management team, to hopefully grow the business and then sell it profitably to return the money to our investors.

Schreck participated in the hearing, as well. He told the board that Sambur has been given control by the Apollo board to manage the new asset group, without interference from other executives or management. This, he asserted, is just another indication that Apollo is committed not to be involved in the management and operation of the licensee or to try to influence it.

When asked if Black would be involved in the operations, the NGCB was told that he is out of the picture. Black, although removed as an executive, is still a shareholder in the company.

Sambur stated that Apollo plans on retaining the Venetian and Palazzo workforce, as well as their pay and benefits.