Vol. 4, No. 4, April 2008
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Wheels in the Sky
Las Vegas Sands Corp. has found a new way to drive gaming revenue by offering baccarat on flights between Macau and Las Vegas.
The company purchased two private jets that it plans to use to carry high rollers between its Venetian resorts in Macau and Las Vegas, and once those planes climb above 30,000 feet—entering international airspace—the games will begin.
The biggest advantage to running a gaming operation above 30,000 feet is that no jurisdiction can regulate the games or collect taxes on them.
Other operators, including Steve Wynn and MGM Mirage, have looked at similar practices but have opted not to pursue them.
MGM Mirage thought it was illegal, because of a 1994 U.S. law that prohibits gaming on commercial flights to and from the U.S.
“We were not aware of any legal or regulator approval for this,” said company spokesman Alan Feldman.
In-flight gaming on private jets is exempted from the 1994 law, but that doesn’t mean there is no oversight.
Nevada has mechanisms in place that govern how its licensees must operate gaming ventures in international territories, such as on cruise ships or airplanes.
In this case, Las Vegas Sands will have to submit a proposal of how it will protect the integrity of the games and how it will operate the games to the Nevada Gaming Control Board before it can start offering the service.
