Everybody. The 2012 Annual Meeting of the Stockholders of Las Vegas Sands Corporation will please come to order. My name is Mike Levin, and I am the President and Chief Operating Officer of Las Vegas Sands Corporation. I'd like to welcome you all and thank you for your interest in our corporation. As President of the company, I will preside at this meeting.
The agenda for this afternoon includes all form of business stated in the proxy statement. Following this meeting, we will have a period during which we'll be happy to answer your questions. Please note that this meeting is being webcast on our Investor Relations website, so any question you ask is going to go to millions of people. Also present at the meeting today are Sheldon G. Adelson, our Chairman and Chief Executive Officer and other members of our Board.
Our Board of Directors include Jason Ader, Erwin Schapertz, Charles Forman, George Kuhn, Charles Kopelman, Jeffrey Schwartz and Erwin Siegel. Rob Goldstein, our Executive Vice President and President of Global Gaming is also here today, along with Chris Cahill, who joined us in April of this year, and we are very pleased to have him overseeing our global operations. Chris, where are you? Okay. How did he get up to the table so fast?
Okay. We are very pleased to have our have him overseeing our global operations as well. Ken Kaye, our Executive Vice President and Chief Financial Officer is also with us as well as Ira Rapelson, our Executive Vice President and General Counsel. Ira Raefelson will act as the secretary of this meeting. Each of you was given the rules of conduct when you entered the meeting room this morning.
Additional copies are available in the registration area. It is our intention to conduct this meeting in accordance with the agenda and rules of conduct. Please remember that an opportunity will be provided immediately following the formal portion of the meeting for questions and discussion. Let us now proceed with the formal business of the meeting, namely: 1, to elect 3 directors to the Board, each for a 3 year term 2, to consider and ratify the selection of Pricewaterhouse Cooper LLP as our company's independent registered public accounting firm for the year ending December 31, 2012 3, to consider and act upon a non binding advisory proposal on executive compensation and 4, to transact such other business as may come properly before this meeting. Will the secretary please report on the mailing of the notice of this meeting to all stockholders and the availability of the stockholder list?
I have
here an affidavit of the mailing of the notice availability by Internet of the proxy materials to each shareholder of record at the close of business on April 13, 2012, the date the Board of Directors fixed as the date for determining such stockholders. I also have present an alphabetical list showing all persons who were holders of record of the company's common stock at the close of the business on April 13, 2012. Those who are entitled to notice and to vote at this meeting. The list has been duly certified by the American Stock and Transfer and Trust Company, which is the transfer agent for the company's shares. List has been available for inspection for the 10 days before this meeting at the company's headquarters and is available for examination by any stockholder of the company for any purpose germane to this meeting at any time during the meeting.
Will the secretary please file the list of stockholders? The affidavit of mailing and copies of the notice of Internet availability of proxy materials transmitted to stockholders with the records of this meeting?
I will, sir.
Bill Kennedy of the American Stock Transfer and Trust Company has been asked to act as Inspector of the election at this meeting. Mr. Kennedy is present and has submitted an oath of office, which will be filed with the minutes of this meeting. I now ask that all of those present with proxies who have not already done so, please file their proxies with the inspector. If there are any stockholders present in person who did not register at the door and have not filed a proxy, Will they please give their names and the numbers of shares owned to the attendants at the door at this time?
Okay. Will the inspector now report whether a quorum is present? The shares outstanding on the record date which are entitled to vote at this meeting consist of 822,000,739,000 856 shares of common stock. From account of the stockholders present in person or by proxy, a majority of those shares are represented at this meeting either in person or by proxy and a quorum is present. On the basis of the report of the inspector, I declare a quorum present and the meeting duly convened and confident to proceed with the transaction of business.
As noted in the proxy statement, the purpose of this stockholders' meeting is the election of 3 directors to the Board for a 3 year term. The ratification of Pricewaterhouse LLP as our company's independent registered public accounting firm and to act upon a non binding advisory proposal on executive compensation. Ballots so we will circulate written ballots so that stockholders who have and already voted for proxy may vote on these matters. The first order of business is the nomination of 3 individuals who stand for election to the Board. All 3 of the company's nominees are presently directors of the company.
I would like to introduce them to you at this time. They are Jason Ader, please stand Jeffrey Swartz, please stand and myself, Michael A. Levin. I'm not standing. You may be seated.
Is there a motion on the proposed election of the 3 nominees? I nominate Mr. Adler, Mr. Schwartz and Mr. Levin for election to serve as directors for a 3 year term until their successors have been duly elected and qualified.
I second the motion.
Are there any questions or comments with respect to the proposal? If there are no further nominations, a motion to close the nominations is in order. I move that the nominations be closed.
I second the motion. It has
been moved and seconded that the nominations be closed, and we will collect and tabulate the votes later in this meeting. The next order of business is the consideration and ratification of the independent registered public accounting firm selected by the Audit Committee of the Board to audit the books and records of the company for the year ending December 31, 2012. The Audit Committee of the Board has selected PricewaterhouseCooper LLP. I am also pleased to note the presence at this meeting today of Kirk Thorell of PricewaterhouseCoopers LLP. Mr.
Thorell is available to answer questions that the stockholders might like to ask. Please answer ask him a question. We'll see if we can get an answer. He's being paid. Might as well get some
out of it.
And that's a very significant amount of money as well too. I will now It's always too much money. Thank you, Kirk. I will now entertain a resolution to ratify the selection of PricewaterhouseCoopers LLP to audit the books and records of the company for the year ending December 31, 2012. I move that the following resolution be adopted: Resolve that the selection of PricewaterhouseCoopers LLP to order the books and records of the company for the year ended December 31, 2012, be confirmed, ratified and approved in all respects.
I second the motion. The motion has been
moved and seconded and we will collect and tabulate the votes later in this meeting. The next order of business is the consideration in acting upon a non binding advisory proposal on executive compensation. Although the vote is advisory and non binding on the Board of Directors, the compensation committee will take into account the outcome of the vote and when considering future executive compensation decisions are made. I will now entertain a resolution to act upon a non binding advisory proposal on the executive compensation. I move that the following resolution be adopted, resolved that stockholders approve the compensation of named executive officers as disclosed pursuant to the compensation disclosure rules of the SEC, which disclosure shall include the compensation discussion analysis, the compensation tables and any related material disclosed in the proxy statement.
I second the motion. The motion has been moved and seconded, and we will collect and tabulate the votes later in the meeting. I now declare the polls open for voting by ballot. All those who wish to vote by ballot should obtain a ballot from the attendant. If you have already filed your proxy, it would simplify the count greatly if you would not fill out a ballot unless you wish to change your vote.
I would also like to point out that most of you who return proxies authorize the individuals named proxy to vote on all proposals coming before this meeting. Has everyone voted who wishes to vote? Apparently everyone has. I therefore declare the polls closed and ask the inspector to prepare a report on the voting. While the inspector is counting the ballots, I would like to at this time to give Sheldon G.
Adelson, the Chairman of the Board of Directors, Founder and Chief Executive Officer of Las Vegas Sands Corporation, the opportunity to say a few words. This is going to be a long time because they're not 822,000,000 shares. You've got to count them 1 by 1. Good afternoon just kidding. Good afternoon, everyone.
Let me start by thanking all of our shareholders for being here with us in person today or for joining us via the telecast the webcast. I and we sincerely appreciate the confidence you have placed in us. I'm happy to say that 2011 was a landmark year for our company and one in which we attained both company and industry records. Net revenue jumped 37% to reach a record $9,400,000,000 that's billion with a B. While EBITDA grew 58% to an industry record in excess of US3.5 billion dollars And 2 of our properties in 2 different markets produce more than $1,000,000,000 each in EBITDA.
In fact, every single property in our portfolio saw meaningful increases in EBITDA in 2011 compared to the year before. And at the bottom line, earnings per diluted share, EPS, more than doubled to reach $2.02 a share. That outstanding financial performance together with our strong balance sheet and liquidity allowed us to return some capital to you, our shareholders through the declaration of a dividend. So it was indeed a landmark year, but we're just getting started. In the Q1 of 2012, we again delivered record financial results for both our company and our industry.
These achievements resulted not by accident, but from the already and disciplined execution sorry, not from already, from the steady and disciplined execution of our integrated resort business model and global growth strategy. Our business model fueled by the convention and trade show industry and the amenities that support it ensures that multiple revenue sources contribute to our growth. Retail, hotel and entertainment offerings, including gaming, all make meaningful contributions to our outstanding revenue, EBITDA and EPS growth. We have noticed that certain of our competitors are now calling themselves integrated resort developers, But there is only one original integrated resort leader. We're the 1st and the original.
None of the imitators can deliver the convention and exhibition expertise that is the cornerstone of our model. That expertise truly sets us apart in every jurisdiction in which we operate, Macau, Singapore and Las Vegas. Our global strategy will drive our success in the years ahead. We were the 1st American based integrated resort developer to operate in either Macau or Singapore. This geographic diversity place us ahead of our competitors in the most promising consumer markets.
It also secures our leadership position for the future. A $9,000,000,000 investment in Macau, encompassing the largest asset base in the Special Administrative region, gives us tremendous opportunity for expansion in the world's fastest growing gaming and entertainment market. Sands Cotai Central at the center of Macau's Cotai Strip debuted on April 11, a little less than 2 months ago. The first phase of the property, which included only 30% of the property's room and suite offerings and just a portion of its future gaming and retail capacity is ramping up consistent with our expectations. Sands Cotai Central is our largest integrated resort development to date, complete with world class shopping, dining and entertainment and 6,400 rooms upon completion with world class shopping, dining and entertainment.
We are confident that Sands Cotai Central will drive revenue and profit growth in the years ahead, while advancing Macau's status as a leading business at leisure travel destination. We'll likewise continue benefiting from our premier integrated resort in Singapore, where we're fortunate to operate in a duopoly environment. As the country's government continues to invest in transportation infrastructure and entertainment amenities, including the recently opened Marina Bay Cruise Ship Terminal, less than 1 kilometer from Marina Bay Sands and the Gardens by the Bay, a 101 hectare botanical garden and tourism attraction adjacent to Marina Bay Sands, We will enjoy additional growth from increased leisure and business visitation. In addition, we are continuing aggressively pursue and evaluate integrated resort development opportunities elsewhere in and around the world, including in Asia, Japan, Korea, Taiwan and Vietnam, in Europe, in Canada, Toronto and even right here in New York City. Our track record of successful integrated resort development coupled with our strong balance sheet and senior leadership team position us to win new development agreements in emerging gaming jurisdictions.
And the predictability and reliability of the cash flow models generated by our IR business model, together with our strong balance sheet and liquidity, will allow us to both pursue outstanding growth opportunities and continue to return cash to shareholders in the future. As we continue to execute our proven business model and global growth strategy, I believe the coming year will be our most prosperous year. I want to thank you for the trust you placed in our company and I look forward to working even harder on your behalf in the future. As long as it says over here, as long as I get Carnegie Deli for lunch. I want to add one item.
I am very, very, very pleased to announce that Mike Levin, during the Board meeting preceding this meeting, signed an additional 2 year contract to expire in December of 2014. Mike has brought a very high level of professionalism. He's brought a lot of good people. He's recruited a lot of good people like Chris Cahill here, And I'm very, very happy to be working with him. He is not only the nicest guy, he's probably the most competent and the most productive and wonderful businessman I've worked with my entire life.
And that's been a long time in business, 66 years in business. Not as long as I know Mr. Chaffetz here, but close. So I'm very glad to have Mike on board. Thank you for doing that, Mike.
So now I'll turn it back to you, Richard. Let us now proceed with the voting results. Is the Inspector ready to report? The preliminary results of the balloting are as follows. In the election of directors, James M.
Adler, Jeffrey H. Schwartz and Michael A. Levin have been elected directors of the company by an affirmative vote of a plurality of the votes cast at the meeting. With respect to the ratification and the selection of Pricewaterhouse LLP as the company's independent registered public accounting firm for the year ending December 31, 2012. The proxies and ballots representing a majority of the votes cast by the stockholders present in person or by proxy and entitled to vote at the meeting were voted in favor of the resolution and therefore the selection of Pricewaterhouse LLP as the company's independent registered public accounting firm for the year ending December 31, 2012 has been ratified.
With respect to the proposal acting upon a non binding advisory proposal on the executive compensation, the proxies and ballots representing a majority of the votes cast by the stockholders present in person or by proxy and entitled to vote at the meeting were voted in favor of the resolution and therefore the proposal has been approved. Did the shareholders vote to reduce the fees paid to PWC? If not, I think we ought to take up another motion. Thank you, Bill. On the basis of the report of the Inspector, I declare that the resolutions covering the election of the 3 directors to the Board of Directors, the ratification of the selection of Pricewaterhouse LLP as the company's independent registered public accounting firm for the fiscal year ending December 31, 2012, and the non binding advisory proposal on executive compensation have all been approved.
Will the inspector please prepare a written record to be filed with the records of the meeting? If there is no other business to come before the meeting, a motion is in order for the meeting to be adjourned.
I move for the meeting be adjourned. I second the motion.
It has been moved and seconded that the meeting be adjourned. All those stockholders in favor signify by saying aye. Aye. Those stockholders opposed by saying no. The motion is carried and the meeting is officially adjourned.
At this point, we would be glad to answer questions that you might have regarding the company. If you have a question, please rise, identify yourself so that we may have a complete record of this meeting. Please note that the question and answer period is being webcast, as I mentioned before, on our Investor Relations website. Okay, we will yes, sir.
I was looking at the statement just recently on what do you call that on AOL and you said that 7 and 8 lots are no longer viable. But I heard that somebody said that you spent like close to $100,000,000 to get those lots. Are we going to get the money back on that?
The company invested up to $100,000,000 actually involved in that in 7 and 8 slot architectural drawings and other materials to work. Basically, we have given up the law in a legal appeal to the government of Macau 7 and 8. We don't have any expectation at receiving the money back at this time. It will be an impairment charge on our books, which will not affect possibly not affect it won't affect our earnings or our EBITDA. The money has already gone out years ago.
The decision was made to give up the suit in order to better our relationships with the government of Macau. We have multiple other projects waiting in the wings in Macau and we thought that it a prudent decision on behalf of the company to make that decision.
Okay. One other question.
Okay. Can I make it can I add something on to that? The government, since they took 7 and 8 or around the same time, plus 7 and 8, They have implemented new rules, limiting the number of gaming tables to everybody, not just us. We're one of 6 concessionaires and they've all limited the number of tables to the other concessionaires. We determined that fighting this and potentially embarrassing the government isn't going to get us what we want because having 7 and 8 besides having to pay for it just to keep it up and maintain it would cost money when there's little or no likelihood that they're going to give us additional approval for additional tables.
They've made it abundantly clear that they're only going to allow 3% increase in the number of tables for the next 10 years. We have reason to believe that they're going to give out all those tables in the 1st year or at least commit those tables. Now some of the properties won't be billed for 3 to 5 years, most of them. And I think they want to give the tables there is no assurance. Well, it's I won't say there's an assurance, but likely it is.
They're not going to increase that over the next 10 years. So what are we holding on for? There doesn't seem to be any logical reason or any rationale to push and alienate the government by embarrassing them by winning the appeal. It's a Pyrrhic victory. So we decided that we're waiting for other things that we can do a lot sooner that we don't have to depend upon them changing their policy for us.
And we're hopeful that we will get some value that we will not have to take an impairment charge because otherwise we would have to as Mike goes into. But if we get other things, then we will then we think we will have done the right thing. Also, I want to
I'd like one more question. You're planning on going to Spain. Now
We like Spanish food. You like Spanish food, right?
We like that. Let me ask you something. If the banks go belly up or whatever, they don't get a euro bond. I mean, is it set already that you're going to go into Spain
or is this just preliminary? We are investigating a European venture that may in a Spanish location. It's really European venture. Is nothing firm, nothing solid at this particular time. Those investigations go on as we do with every other destination.
If something were to happen that would dislocate the euro, dislocate other situations that would make it financially non viable, We have plenty of time to make the decision negative or positive depending on what happens. There's nothing absolutely firm about that location today. It's part of our process of development. So we do that every place and all of these investigations can take a year or more to be able to firm up. So what's happening today may not be happening tomorrow, but we won't make there's no decision today about that location.
From a practical viewpoint, there are the we've established a radius that it is no more difficult to get to Euro Vegas that we're sort of have a working title for or Europa Vegas. That is no more than the amount of time it takes to fly from here in New York City to go to Las Vegas. So in the strong winds, that's about 5.5 hours. So 5.5 hour radius takes us to about excluding the North African countries, which we don't see a lot of business coming from except maybe a handful of people, To over 40 countries that encompass, depends upon which part of the country you cover, between 700,000,000 to 800,000,000 to 1,000,000,000 people. So this is not a Spanish project.
This is a project for all of Europe. Traditionally, Western Europe and what's known as what I call the former Warsaw Pact countries, the Eastern Europe, Poland, Czech, Bulgaria, Romania, all those countries. And then we would go further to the former Western countries of the former Soviet Union. And then we would even go to Moscow and St. Petersburg where we could center on airplanes in or charter aircraft to bring people in.
This has been probably one of the most studied projects ever, certainly by us and I don't think we've gotten 12 different reports. And each category of an integrated resort, we've gotten I think in all categories we've gotten at least 2 different reports to one to validate the opinions of the other. We had a good feeling how it's going to come out and it's come out pretty much like we thought it would be. But we're not relying upon the Spanish banks at all. We have banks with whom we work all over the world.
We have relationship as far away as Singapore, China, Mainland China. No, it's not a question of the banks if they go belly up. In other words, if Europe, if the economy goes belly up. Anything that would prevent us from achieving our stated goal, which the whole development is contingent upon of a 20% cash and cash return will cause us not to proceed forward with the project. If we can't make 20% of the money that we put out, we're not going to proceed forward.
And if anything any dislocation of the euro, that's going to be a deal breaker as well. Yes, sir.
My question is, in the last few months, there's been a lot of talk on the East Coast about you may going up to Boston and elsewhere. Right now, New York or Manhattan has had some problems with NYRA, which is New York Racing Association. And the governor is looking for alternatives to set up some type of a casino possibly somewhere. Have you been approached by many people?
We've had numerous conversations here in New York and in Albany along with many others, our competitors as well. And we are investigating opportunities in New York in the city as well as in Queens and other places. Those situations that would essentially give us an opportunity to use our integrated resort model. That's a long process. It takes once again a while to it takes once again a while to investigate it and also that requires legislation to be passed here in New York as well.
So but we are in that's one of the areas that we are investigating. Governor
because of the governor because of the new casino they have out in Queens has been very successful.
Well, it is successful, but that particular casino is not in our model and has a very, very difficult tax situation involved there too. The kind of investments we make require a multitude of facilities or either by us or by partners etcetera and that would be that's what we're investigating. So we do have an opportunity and we will be looking at it very carefully. Thank you. We took a strong look at the Boston.
I'm from Boston. I still have a home there. Mike is originally from Boston too. So it was a bitter pill for me to take to make the decision that Boston was too saturated, too diluted for casinos within 100 miles of Boston. They're about 12 doesn't have to be within the borders of the small state of Massachusetts.
Over 100 miles, there's like 12 full fledged casinos. There's just not enough of a radius to capture the to capture what we need to justify a 20% return on the amount of money we need to build the kind of IR that we're specialists at. No. No. There will be one.
There will be one Indian casino that doesn't have a reservation that we understand could pick a location within 50 miles of where they're living. Okay. Well, that's New York is. That's the Shinnecock's. Right.
There's a golf course there in Shinnecock, but they're talking about that too. And I hope it doesn't happen, but because I think the Hamptons ought to stay the way they are myself, but that's my own personal opinion. Yes, sir? Notice in the papers and elsewhere that a unit of Cantor Fitzgerald has begun to manage poker rooms and sports betting facilities in Las Vegas. And I wonder how you feel about that and what your strategy is and whether it affects either your risk or your bottom line?
Cantor manages the sportsbooks in both of our facility well, I think both of our facilities in Las Vegas now. So we believe that it was better for our bottom line to have Cantor run those facilities for us. The arrangements we made with them essentially assured us the minimum we would get is what we were making on those and we have a chance to improve profitability. In the sports book business, I'm not an expert in it. I could ask Rob to explain it.
He's been in it a lot longer than me, but just to simplify it so it's not a long conversation. Volume is very, very important as you lay off different bets from when you get large bets. When you're running your own sports book, it's harder to maintain profitability and the skill sets that you need. Canter wants to get more and more sports betting facilities so that they can use that particular leverage from one to the other. So we made that decision to make more money for us and eliminate our risk.
And I think others, you've seen others in Las Vegas doing the same thing. Was that right? I don't bet, so I don't know what Rob does. Well, you got married. It's the only bet I ever won, actually.
Yes, sir.
I think we're all very happy to have received a very nice dividend this year from Las Vegas. Do you contemplate continuing the dividend? Is it going to be an annual dividend? Is it going to be a quarterly, semi annual? What can we look forward to?
It's a quarterly dividend. We and if I want to keep my job, which I just signed up for, I have to keep increasing that dividend and maintaining it because the person who gets owns 52% of the shares gets a very substantial dividend, sir. So my job is to make sure there's enough capital available to not only maintain it, but to increase it over time. So you're in good shape. Yes, sir?
Could you talk in
more detail about the close eye opening and just some of the things that have been better than you expected, some of the things that have been not as well good as you expected?
Sure. Rob, you want to make some comments more context? Sure. You said about SCC, the new property? Yes.
You're talking about Sands Cove account. I think it's been a nice opening. Keep in mind, it's a small portion of properties. It's only not fully opened yet. I mean, there's just a portion of the rooms in the casino.
We'll be critiquing it. We should have more slot machines, ETGs. We've done very well in the junket space. We've outperformed our expectations there. I think we'll continue to ramp up.
It's just beginning. It's a long race and I think we're doing well. We'll do a lot better in time. In Macao, the focus is always on the revenues, the gross gaming revenues and shouldn't be. It should be focused on the mass and premium mass growth and that's been growing by 25 percent.
That's the strength of that property. We'll be participatory in all three segments: mass tables and slots and ETGs, etcetera. But the real opportunity for that property is all those rooms are open. All that gaming spaces dominate Cotai and the mass market and premium mass along with the fair share junket. So we're off to a good start.
It will get better. It will grow with time. The ingredients in that property exactly what we want in Macau, which is all three segments identified, fabulous room product, eventually 6,000 keys, Phase 2 this fall, final phase in 2013. Yes, Tom? We expect to open we're going to open 1 with the remaining 2 towers.
Well, there's 3 remaining. But of the 2 that are almost completed, 1 will open on September 20 and we're looking to the government to give us a partial certificate of occupancy to open up. It's about either I forget which tower is 2,200 and 1 is 2,000 rooms. It will be the Sheraton like the hotel we're sitting in right now. They'll be managing that.
It will be the largest Sheraton in the world. It'll be 4,200. And I think the St. Regis will be the 4th tower, which we haven't we've just built the lower levels, what we call the podium. And then we'll build the room tower above that.
And that will be about 450, 500 rooms. So it will give us about 4,700 rooms for the under Sheridan Corporation Management, not Sheridan, Starwood. So we decided we're going to try to open 1,000 to 1500 more rooms. There are 3 components to the casino. 1 is Lot 5, which is open now.
The second component is Lot 6, which is larger and we're expanding that. We're going to take another 40,000 feet and add that formally reserved for the theater in Lodge 6. And that will open in September as well. We're going to open the last tower in the Q1, but I think we're going to partially open it with 1,000 or 1500 rooms in September. So we'll be a ramp up period, a serious ramp up period will be on the way by September.
It is we're already ramping up, but we only have one tower to ramp up. And the VIP casino space, which isn't fully well, actually the demand was so high from the junket reps that we had to expand it and that expansion is going to take place. So it's starting to expand now. So come September, we'll have a much more robust return on the casino space. You've mentioned limitations on table games.
Are there similar limitations on slot machines in Macau? No, no limitation on slots. And slots have been growing dramatically, Tom, over the years. You've seen it. I think you've been there.
Tom Summers is a shareholder who moves around, goes to our properties and sends me reports of how we're doing. And I think he comes from Minnesota, I believe. And basically, I get his letters, they're handwritten and takes the time to tell me what's going on, good and bad. So I would ask anybody here who wants to do that, go around our properties and write me letters. We're always happy to have them, but it was great to see him and his wife here today.
And thank you. And he loves Singapore. We'll be back. I don't blame him. We love Singapore too.
That's right. Okay. Yes, sir. Thank you. You own a lot more shares than I do.
So you've probably noticed they've been off a little bit in the past month or 2. Pundence would attribute that to a softer May in Macau than recent monthly numbers And of course would imply that the sky is falling and there's more VIP competition and fewer VIPs coming and the world looks bleak. I guess the opposite point of view would be that a holiday in May was shorter this year than the previous year and there was a large opening last year. I was just hoping you could give us your take as to what's really going on there, whether there's been any real diminished pace of appetite for gaming in the VIP segment? I think it's very unfair.
I'll ask my colleagues to give their opinion. But I personally think it's terribly unfair for analysts or for any investors to make a determination about the 2nd highest grossing month in the history of Macau. And only by a teeny bit, the highest the record was 3.sorry26.8 mop. That's the Macau currency, dollars 26,800,000,000 and was the record I think from last October or November. And May was $26,200,000,000 Now depends on whether this is a typical glass half empty or glass half full.
People were concerned about the GDP drop in China that went from 9.5% to 8.5% as the sky is falling scenario. Look at it from the other way. Look at it if the GDP was 3 or 4 or 5 or 6, a jump to 8.5 would be celebrated. So how can somebody say it's the 2nd highest month in the history, that because the comparison of last year was a difficult comparison, they call it a difficult comp. And people are already suggesting that June of last year was a favorable comp to come up with a higher percentage this year and the analysts are suggesting that the month of June will be up over 20%.
I think it's just a it's I don't know, maybe it's just an excuse for people. Analysts come out there and they say, my job is to call out all the cautions, all the cautionary interpretations of what's happening. I think it's insanity to say that everything is going to hell in a handbasket because we only have the 2nd highest run on record and we only grew 7%. I remember when we first got into Macau, there was $2,500,000,000 of business done. Before we opened in 2004, on May 18, the Sands Casino on The Peninsula in Macau, From 2,002 to 2004, the market without adding a single table, a single slot machine or a single chair at any table went up to $5,500,000,000 That's because somehow or other some people think that the intervening US3 $1,000,000,000 equivalent was hiding somewhere and somebody found it and they started to report it.
My take on that is that the then monopolist knew that our figures were going to be transparent. And so we said, Oh, well, I want to prove that because the sands came in and they ended up calling it the sands effect that the market went through the roof. Last year, there was $33,000,000,000 in gross gaming revenue. And we're probably going to hit $40,000,000,000 this year. That sounds to me like a great growth market.
Anybody else want to say anything? I can add one thing to what Sheldon said. The if you really want to look at our business, 25% of our EBITDA in Macau comes from non gaming, 50% comes from the mass market gaming and 25% comes from VIP gaming. We've improved our share in VIP gaming every month since January. And but we are the mass market leader in Macau.
So mass market has not slipped. It continues to grow. The VIP has slipped a little bit. We're getting a higher share of a smaller growth, but that growth was I think in May something around 16%, which is still a considerable amount of growth. So we're in very, very good position because of our business model to weather any of those, what they would call, dips in that environment.
But any country in the world would be really happy to have those kind of growth numbers, including here. So we're not concerned about it, and we don't expect to be unhappy in Macau for what we have in position there. Any other questions? Okay. Well, if there are no other questions, let me thank you on behalf of our entire management team and thank Sheldon for his very kind remarks about me and say how happy I am to have you.
Thank you.