The Nevada Gaming Commission voted Thursday 4-0 to approve the distribution of a dividend of an estimated $620 million to Apollo Global Management investors and its plan to hand out bonuses to The Venetian’s 7,000 employees.
The distribution was recommended on November 2 by the Nevada Gaming Control Board. Recommendation and approval were required steps given that the operating subsidiary of Apollo is a private equity investment company.
Regulators were required to review the distribution to be sure the company maintains an appropriate debt balance and financial stability of the operation, reports Las Vegas Review-Journal.
Robert Brimmer, chief financial officer of The Venetian, said the resort has outperformed expectations since the property was acquired for $6.4 billion from Las Vegas Sands Corp. in February.
He said the company has had “better-than-expected” financial results in the hotel, casino, food and beverage, and meetings and convention businesses. Apollo has managed to maintain high room and occupancy rates since its team took over, Brimmer noted, adding the company intends to invest $1 billion in the next three to four years to remodel rooms and expand its casino floor.
Commissioners said they were comfortable with the distribution plan because the company will have about $200 million in available credit by the end of the year, including a financial agreement with Las Vegas Sands, Review-Journal further reported.
According to Apollo executives, the amount of bonuses to workers would be announced at an employee town hall meeting, and each employee would receive an equal amount.
Even though there was no update on the bonuses, executives stated that some employee benefits that had been suspended during the pandemic have now been restored. These include a 401(k) employer-sponsored retirement savings plan match program and a funding match program for employee education.