Sources say Bethlehem casino for sale

Las Vegas Sands Corp., the company controlled by billionaire Sheldon Adelson, is seeking a buyer for its casino in Bethlehem, Pa., according to people with knowledge of the situation.

The Las Vegas-based company is asking as much as $1 billion for the property, the second-largest casino in the state based on gambling revenue, said the sources, who asked not to be identified because the matter is private.

A deal is not certain. Efforts to sell the casino have been complicated by price and potential buyers involved in other deals. Penn National Gaming Inc., which bought a St. Louis casino from Caesars Entertainment Corp. in May for $610 million, said in November it was splitting in two, a process that will take effect in the second half of this year. Pinnacle Entertainment announced plans to buy Ameristar Casinos Inc. last month for about $900 million; neither Pinnacle nor Ameristar owns any casinos in Pennsylvania or New Jersey.

Ron Reese, a Las Vegas Sands spokesman, said the company does not respond to market speculation or rumor.

"We are proud of the financial results the property has achieved and the role we have played as a community partner there," Reese said.

Casinos outside of Las Vegas have sold recently for about 7.5 times earnings before interest, taxes, depreciation, and amortization, according to Bloomberg Industries research.

In the 12 months to Sept. 30, Sands Bethlehem earned $109 million, according to company filings, suggesting a value of about $817 million. The property is carried on the books of Las Vegas Sands at $944 million.

New York Gov. Andrew Cuomo this month proposed creating three casinos upstate. Sands Bethlehem, located at a former Bethlehem Steel plant, is the closest Pennsylvania casino to New York City, about 80 miles away. It ranked first in table-games revenue among the state's 11 casinos, according to data from the Pennsylvania Gaming Control Board. It ranked second in overall casino revenue with $438 million in 2012.