Good day everyone. My name is Amanda and I will be your conference operator today. At this time, I'd like to welcome everyone to the Las Vegas Sands Third Quarter 2017 Earnings Conference Call. All lines have been placed on mute to prevent any background noise. I would now like to turn the call over to Mr. Daniel Briggs.

Thanks, Amanda, and thank you for joining us on the call today. Joining me on the call today are Sheldon Adelson, our Chairman and Chief Executive Officer; Rob Goldstein, our President and Chief Operating Officer; and Patrick Dumont, Executive Vice President and Chief Financial Officer. Before I turn the call over to Mr. Adelson, please let me remind you that today's conference call will contain forward-looking statements that we are making under the Safe Harbor provision of federal securities laws. The company's actual results could differ materially from the anticipated results in those forward-looking statements. In addition, we may discuss non-GAAP measures. A definition and a reconciliation of each of these measures to the most comparable GAAP financial measures is included in the press release. We also want to inform you that we have posted supplementary earnings slides on our Investor Relations website for your use. We may refer to those slides during the Q&A portion of the call. Finally, for those who would like to participate in the Q&A session, we ask that you limit yourself to one question and one follow-up question so we might allow everyone with interest to participate. Please note that this presentation is being recorded. With that, let me please introduce our chairman, Sheldon Adelson.

Thank you, Dan. Good afternoon and we want to thank you for joining us today. Our company delivered another huge quarter and I'm very pleased with the strong financial results. Company-wide adjusted EBITDA reached $1.21 billion, an increase of 6% over the prior year and an increase of 10% in a hold-normalized basis. And I don't know what the percentage is over the consensus number but it's over. Our Macao operations produced its best quarter since quarter four 2014 with adjusted EBITDA reaching $652 million. Hold-normalized EBITDA grew by 11% year-on-year and we significantly outperformed the market in both rolling and non-rolling volumes growth. We delivered strong growth metrics across every segment of the business both gaming and non-gaming. During the quarter, we grew rolling volumes by 48%, that is whopping; non-rolling revenues by 19%; mass gaming revenue by 13%; occupied room mass by 24% and retail sales by 18%. It was a good quarter. Overall, property visitations were up 26% over the prior year. At the same time, we have successfully established The Parisian Macao as a new landmark must-see destination resort. The Parisian Macao achieved a quarterly EBITDA of $135 million and I am pleased to report that it has now met our targeted 20% annualized rate of return within just one year of opening. That was good too. During the quarter, we reached a major milestone, the 10th anniversary of The Venetian Macao. When it opened in August 2007, The Venetian stood alone on Cotai. Its opening marked the first step in my vision to create the Cotai Strip. The Venetian introduced large scale, non-gaming amenities to Macao such as retail malls, MICE, live entertainment and arena. These attractions are now well established in Macao and will continue to flourish and grow. I cannot be more proud…

And our first question is from the line of Stephen Grambling of Goldman Sachs. Your line is open. Stephen Grambling - Goldman Sachs & Co. LLC: Hey. Good afternoon. Thanks for taking the question. Could you just talk a little bit more about the expected returns from the renovations and work you're doing at Sands Cotai and Four Seasons and how those returns might compare to a new property for example? And then as a related follow-up, when will the renovations get started and how should we be thinking about any kind of near-term disruption? Thanks.

First of all, we expect the return to be huge... Stephen Grambling - Goldman Sachs & Co. LLC: Well, I think...

... (23:19) nowadays. We are going to start the development and the renovation in the second quarter of 2018 and it will take about 18 to 24 months to complete. Am I saying that right?

You're correct. And we also expect – I mean, the way we look at this building, Stephen, is it's a well-executed thematic building. Locational advantage will create opportunities to grow in all segments, but especially from our perspective the mass segment, the gaming side as well as the retail segment. The SCC has performed very well in the premium mass segment because of the 6,000 sleeping rooms, but we think underperforms the base mass segment where the highest margins reside, and its location is particularly advantaged to being between the new MGM building and the Wynn building across from The Venetian; 6,000 sleeping rooms, great location. It's always been somewhat ambiguous from my perspective as far as the non-themed approach. We think it coincides nicely with our Parisian success and of course the landmark building, The Venetian. Think about a building that right now runs about half of the rents that The Venetian is running in the retail. We think we can bring those rents up to a Venetian type level. We believe we can grow base gaming. There's adequate capacity in that building for more gaming on the base mass side, obviously, the highest margin business in Macao and that's our particular advantage at both The Venetian and The Parisian. So, we're highly confident that this renovation can take us to a whole new level at Sands Cotai Central and it's something we're very excited about. We spend a lot of time researching, thinking about it. It's been in the works for quite a while, and it's time to go into action. So, as Sheldon referenced, sometime late 2019, it should be open and ready for business and start performing.

So, it will be open and ready for business during the period of time.

It will be.

Only some of the rooms that are going to be renovated and the rooms that are completed will be put to immediate use.

Correct. There will be disruption. We can't deny that. That's a fact of life in any building this large, and it's an ambitious renovation. It won't speak to – it's more about the casino, the façade, and some of the sleeping rooms, but the majority of the sleeping rooms remain intact. We are very pleased with most in the St. Regis building, we'll take the new St. Regis suites and redo those, and we'll leave alone the Conrad and the Sheraton. We're going to redo the entire Holiday Inn facility and redo the façade of the building. And there'll be some unexpected surprises as part of the renovation. Stephen Grambling - Goldman Sachs & Co. LLC: That's very good color.

I think the way that we think about returns is that these are existing assets. So, it will be quicker to market. And they happen to be addressing our fastest growing segment, which is the premium mass segment. If you go to page 16 in the earnings deck that we provide, you'll see that that segment grew 17.7% year-over-year. So, we feel very confident in the long-term growth of premium mass. It's a very high value customer segment. We have a very deep database in this area. And we feel that these two buildings, once they become activated will speak directly to that segment in a very powerful way given the non-gaming amenities we have available adjacent to them and in those facilities. So, we think the returns will be very good. Stephen Grambling - Goldman Sachs & Co. LLC: Great. Thanks. And maybe one unrelated follow-up. Just the rolling chip drop at The Parisian was much, much better sequentially year-over-year. I guess, is there anything unusual in that? Or how do you think about the right run rate for that property now that you're kind of lapping over the opening? Thanks.

Right. Well, first, we're very pleased The Parisian has proven to be wildly successful. This quarter, I think, validates our approach there, the themed approach. The façade is exemplary. It attracts 40,000 people a day into the building. And all segments seem to be attracted to this building. Our new suite product comes onboard starting with Chinese New Year's. So we'll keep growing that segment. The high roll, I guess, is a concentration of demand-driven, large volumes of business, and it shows the acceptance of this product by the market. Is it sustainable? We never comment what's going to happen tomorrow in terms of any one segment. We've seen how that works in the past. We will say the building is getting great response from all segments; mass, premium mass, base mass and obviously rolling. And we're delighted with the results and it's a very strong quarter. And we hope it continues. Stephen Grambling - Goldman Sachs & Co. LLC: Thanks. Best of luck.

Thank you.

Thank you.

We don't hope it continues. We expect it to continue.

Oh, excuse me. My mistake.

It is a mistake.

Okay. We expect it to.

Thank you. And our next question comes from the line of Thomas Allen of Morgan Stanley. Your line is open. Thomas G. Allen - Morgan Stanley & Co. LLC: Hi, good afternoon. Can you just give us some more granularity about the drivers of the strength in Singapore? Thanks.

Sure. First of all, I think, it's – the numbers speak for themselves. It's another exemplary quarter and another $1.6billion plus year it appears. I think our focus on the cost side has been very helpful in the commissions. We're very – I think, we've got a good approach there. The building is proving to be very, very resilient in terms as we keep dropping commissions, customers keep coming. And we'll keep doing that until they stop coming, so that's one positive. The other positive you see, the rolling volumes which are significant, and -but I would caution you again as we said in The Parisian call and we said in the past. These are concentrated segments and it does represent 10,000 customers or smaller than that. So I think in the end the only disappointing part about the MBS is the lack of growth in the non-rolling slot ETG segment kind of flattened out four or five a day. But I think it speaks to our team over there running this exemplary building that we've driven this kind of a EBITDA, out of a market that's not really growing that much. And frankly the hotel does well for $454, $446 ADR and 90%-plus occupancy strong and sustainable retail. But again, all cylinders are working there. The one which we had is the four or five a day. The one really big positive is larger rolling volumes and great commission structure against that rolling segment producing greater margin. So margin has crept up into the 30%s, and I think it speaks to what we've done over there to maximize that asset. So, that's my take on MBS. Thomas G. Allen - Morgan Stanley & Co. LLC: And Rob, is this strength coming from Chinese players coming back or is it Greater ASEAN?

I think, it comes from people in the region. I wouldn't necessarily characterize as Chinese driven. It's – we have a strong permanent resident base there with a strong base out of the surrounding countries. We do well in Indonesia. We do well in Malaysia. We do well out of Japan there, so it's a mix of business. I wouldn't identify China as the primary driver. In fact, if anything, we're seeing, it's stable in China but not necessarily growing significantly.

And just to clarify on the comment Rob... Thomas G. Allen - Morgan Stanley & Co. LLC: Helpful.

– made on the margin piece, he was talking about the VIP margins specifically being into the 30%s which is fantastic for the property overall, but we're effectively in the mid-50%s at this point.

Thank you. Yeah. Correction, we did mid-30%s for the rolling segment, 54% or 55%in the whole building. So remember, that's a long way for it used to be, so I think again, our concentration on costs and commissions have paid off. Thomas G. Allen - Morgan Stanley & Co. LLC: Helpful. Thank you.

Thank you.

Thank you and our next question is from the line of Shaun Kelley of Bank of America. And your line is open.

Hi. Good afternoon. Maybe to go back to the expansion plans a little bit, just sort of kind of new investment here. Could you just walk us through your intentions around the hotel brands? Has that strategy worked or is your intention to terminate any of those or any of those kind of contractual relationships? And then on sort of in a similar vein, when we think about the disruption is there sort of a plan for how many hotel rooms there'll be out of service, maybe overall or be touched by the renovation so we can just kind of try and think about possible disruption in modeling that?

Sure. On the hotel side, we're not going to discuss which brands. At this point, the goal is to keep all the brands in play at SCC. There may be some changes and some rethinking how we do that, but the intention – we're very happy with the quality of brands we have there. There is a strong intention to re-façade the building. So when you drive by, we actually are going to Macau this evening, you drive by The Parisian, as you arrive there, it's always the most – it's visually stunning and same thing with The Venetian. It's very, very attractive to the eye and makes you want to go inside the building. We want to achieve that more at The Londoner, something with all the iconic architectural look and feel of Big Ben, et cetera, Parliament Building something which you would see visually from the street and feel very much willing to come in and explore in the building. Secondly – so it's both going to be a architectural treatment and a re-façade of some of the towers. Once you're in the building, again, very much a London-feel, London-style approach all kinds of opportunities to (32:39) to theme it. If you think about London, it's iconic in so many ways, the busses to the Beefeaters, and there's just so many opportunities there. Our team is having great fun playing with that, inside we think the casino experience to be much more iconic, much more thematic. As I said, the hotel was mostly remain untouched. We were happy with our, with our partners, they're happy, we're seeing there, and there may be some rethinking to the decor pieces. But for the most part it remains untouched and the goal is to be both in both sides of the…

Great, thanks. And just maybe a follow-up which is really just a kind of a clarification, but the $1.1 billion total investment. That's fully inclusive of the build out of all the incremental hotel rooms, we know you obviously have a lot of that, at least the building is constructed [Technical Difficulty] (35:15) everything in the rooms, right?

Yeah. The numbers that we show in our CapEx slide are inclusive. So, that's to complete the project and that's our anticipated timing of spend.

Thanks, everyone.

Thanks, Shaun.

Thanks, Shaun.

Thank you and our next question is from the line of Joe Greff of JPMorgan and your line is open.

Good afternoon, guys. Just going through your earnings slide deck on slide 16, the base mass departmental profit margins, you took down 35% to 45% from 40% to 50%. I guess what's driving that?

You want to take it?

I think it's a combination of factors. Part of it has to do with rating of players and the fact that we have more rated play on the base mass floor than we've ever done before which is helpful, because it allows us to know our customers better and set them up for repeat visits. The problem is it's just not as profitable. So, as the market matures, as we get to know our customer base better in the base mass segment, we're going to have some margin change as they become rated. That's really the driver there. But it just means that as the volumes go through, as the market becomes more competitive, remember there are more people addressing the base mass segment in the Macao market today, we're going to do things to retain our customers and develop them and there's going to be some margin reinvestment required for that.

It's a good long-term investment retaining customers and loyalty.

And to add some historical color, you have to go back five or six years, you'll see a time when we had a 50% margin in base mass. Since the downturn in Macao, we've been pretty much right at 40%, close to 40%. Margins are steady in the base mass business right now, so we're right at the midpoint of that range today. And you know, they got a chance to go up over time as business matures.

Okay. Great guys. Thank you. And then, I guess we'll find out at the end of earnings season what actually the mass segment grew in the 3Q, but your math in the slide deck in terms of the estimated mass growth is very similar to ours. To what extent do you think the level of deceleration in the mass and slot segments both here in October and at the end of the 3Q is a function of your lapping two new properties versus, there's something else going on with mass players or the mass segment in terms of their ability to access cash in the same way they could earlier in the year? Whether it's (37:47).

Yeah, Joe. Obviously, it's hard; we're not going to speak to October at all as its fourth quarter. But I think there's more competition, there's more people in that space, I think Galaxy has done a very good job. Look, everybody wants a piece of that business and they should. It's the highest margin, it's the most profitable part of our portfolio and something we – we want to be dominant in all segments, from base mass, premium mass, rolling, across the board. But as Patrick referenced in our rating situation, and as we see for the competition, there's some very good products out there which we're competing against. So we used to be alone in Cotai, we used to have the 100% share of that. That's changed. And I think that's going to continue to be an evolving process. Part of the reason we are so excited about The Londoner, is we can recover more of that business with The Londoner we haven't had. The Venetian has been our base mass product that's been all along the most important, the most successful part of our portfolio. We see very little of it at the Four Seasons Plaza, we saw a lot more of it come back to The Parisian and The Parisian taught us a lesson that we go back to the drawing board and say we want to be in all segments to be successful. So that's part of our planned strategy for The Londoner on a go-forward basis. Our goal is to be successful, dominant in all of the major segments including base mass, premium mass, rolling segment, all important to us. So a lot of competition, a lot more people competing for that customer, that segment's dollar.

Joe, the other thing we want to point out is, if you look at page 13 in the deck as well, you've got Mainland Chinese overnight visit which is a super important statistic. That's up over 15% when you look at the third quarter. So that's 3.23 million Chinese visitors, that's a record. And the other two data points we provide on page 13 are the average length of stay, which is going up because of the hotel inventory, as well as the mass win for customers. So, that's also going up. And this is a seasonal business too. And if you look at the mass win per customer on page 15, we've got an illustration for the last five years here. The second quarter to the third quarter, this is the least amount of degradation we've seen in the win per customer between the second and third quarters here as well. So, you've got a very nice premium mass business, more visitation, we don't have the bridge open yet. There's a lot of things to think to the future that give us a lot of confidence that the mass business is going to continue to grow at double-digit rates higher than the rates we're seeing today.

And just to just to add to that, our mass drop, Joe, is up 19% year-on-year, our hotel room nights are up 24%. I think the key component as we see more visitations and (40:31), obviously, sleeping accommodations, we have all those keys in Macao and clearly that's driving that base mass into our buildings and will continue to.

Thank you for the thoughts, guys.

Thank you.

I want to point out that you originally said that we were the only ones we had all of it. Now, others have come in to take it, but I think it's significant to point out that the entire market has grown.

Sure.

So, what we took in at the beginning when we were alone, we've increased...

The pie has grown.

The pie has grown and we've got a bigger share of the pie.

More people eating, but a much bigger pie.

Right.

Next? Thanks, Joe.

Thank you. Our next question is from the line of Anil Daswani of Citigroup. Your line is open.

Hey. Good morning, guys. My question is about The Venetian. The Non-Rolling Chip win rate fell to 22.8%. That's the first time in six quarters that it's been below 25%. Was this a one-off and it's something that we should expect to be modeling to rebound in maybe the premium mass segment?

We hope so. You're right, absolutely. We fell 3% year-on-year in terms of that. The nice part of the story is that we had 500 keys off the market, premium mass keys, which are coming back on the market. The second nice thing is we actually grew the volume. We had material growth in – over double-digit growth in the mass segment coming out of that segment, which was very positive for us. It's unfortunate. If you actually applied the 2016 hold percentages to 2017 volumes, we would have had one hell of a quarter. But it doesn't work that way. So, you're absolutely right. We had a nice volume. The Venetian had nice growth. Consider the fact it had all those rooms off the market, it just had a stellar quarter, just unfortunately didn't hold like it did the year before. Still within the range, but 3 percentage points off on an awful lot of play. Can it return? You hope so. Historically, The Venetian has been a very strong hold percentage building. Can we predict 25%, 26% sustainable? We cannot. Can we hope it returns where it's been historically? We can. 22% is in the range, 25% is better. What's really good though is the volumes of Venetian continue to grow in that segment and I think that's a great sign for the future. We would spend some money in The Venetian rooms which we needed to. We're looking at some casino renovations. We're doing all the junket rooms (43:02) with our partners. Our partners are working with us on the design. And we're going to spend some time this next couple of days with them. We're very keen to see The Venetian get back to a higher run rate because it's just a great place to visit and, again, has that wonderful curbside appeal we want to emulate across the street at The Londoner.

Fantastic. As a follow-up, could you give us a progress report on the renovation program at both The Venetian, when do you expect the entire room product to be renovated, and also at The Parisian, you're going to upgrade some of those to a suite product, is there a time line yet as to when all that will be complete?

Yeah. So, on The Parisian rooms, the renovation into the premium suite, it begins to come online Q2, actually, during Chinese New Year. I should say Q1. We'll see some of the suites come back. It continues throughout the entire year. It doesn't finish until the end of 2018. 600 keys becoming 300 suites. At The Venetian, it's the early 2018, so sometime around Q1 and that's 1,000 upgraded rooms, stellar rooms by the way that will compete very well with any product, very large Venetian-style suites, completely renovated bathrooms, all FF&E. And I think it puts The Venetian back in a very, very strong position for that premium mass customer.

Thank you.

Thank you.

Thank you. And our next question is from the line of Robin Farley of UBS and your line is open.

Thanks. Two questions. One is, I know, Vegas is a smaller part of your EBITDA, but I wonder if you could just give us a sense about how occupancy has been trending over the last few weeks in terms of kind of rate of recovery or when you expect occupancy levels there may get back to kind of previous levels? And then my other question is Macao-related, which is, trying to think about that $1.1 billion, kind of how much of that is sort of maintenance CapEx versus – you're adding the 645 rooms and so obviously a lot of the cost is going to kind of the re-theming rather than adding new supply to your hotel base. So, can you give us a sense of how much is going to add the 645 hotel rooms as opposed to just kind of maybe more refreshing of existing product, if we think of it as kind of maintenance versus growth CapEx?

Sure. Well, I'll take the Las Vegas question, and ask Patrick to take the second question. Las Vegas is recovering. The group business had expressed some concerns about obviously the tragedy. The horrible truth is these events keep happening. We become a lot more resilient in the world to these tragedies. What used to be, 10, 15 years ago, would have altered the course for months and months, it seems like people now accept these horrible situations. And truth be told, we feel Vegas is recovering rather quickly. Anecdotally, we hear that across the town; we see it in our building. So, I hate to say it, but what a few weeks ago seemed like a – might be a real difficult event, the town appears to be bouncing back. The hockey game was filled the other night. Bookings are strong. Our place looks very busy. So, I think Las Vegas is recovering well and more – quicker than I would have imagined when it first happened. As for the CapEx issue, I think, we'll turn it to Patrick or Dan or both. Fellas?

So, if you turn to page 22 on our earnings deck, you can actually see the split between what we consider maintenance capital and the investments in the projects that the Chairman described earlier regarding The Londoner at the St. Regis, completion of the tower suites and the completion of the Four Seasons tower suites. That's all there on page 22. So, actually, maintenance CapEx, we've been running in the $400 million context. We've always tried to show that it will be about $500 million. As you know, we like to reinvest in our buildings to make sure they're leading in terms of their design, in terms of their amenities, in terms of their offerings to our customers, in terms of their finish. And we're going to continue doing that to ensure that we can market to the best most profitable customers. That being said these projects do address the premium mass segment which is one that is a larger suite product. It's not our standard room, so these will be very impressive product, great renovation. So, in the – what was mentioned in the script, if you look on page 22, you can actually see the amount being spent for each of the renovation. So, the split between maintenance CapEx for the entire property portfolio in Macao, as well as each of the individual projects described is actually there.

I see that the maintenance CapEx is not changing too much each year, so I guess I was thinking about maybe some of the rebranding to The Londoner, kind of the split between rebranding and actually adding to you – new hotel room.

Robin, the whole – everything that Rob has been describing about re-envisioning and Sheldon have been describing about re-envisioning, that's about $700 million of budget right now. The St. Regis Park Hotel is about $275 million of budget, and the Four Seasons is about $250 million of budget. The $275 million and the $250 million are a lot less than they would be if we're building brand new towers because these towers have existed for an extended period of time, so the core and shell has been there for a long time. And so, this is a small investment for hopefully a big impact in opportunity.

Okay. Great. Thank you.

Robin, also we've referenced these – the Four Seasons apartments. I mean, these things will be almost 290 residential field type apartments that can be deployed for The Parisian premium mass, for the Four Seasons premium mass or for the Venetian. So, I think, they would be very impactful for that customer who plays large, wants a family stay, wants to bring his children, et cetera. I think that building is very well situated. It's been dormant, it's going to be reactivated, and I think, it would be very powerful as far as an EBITDA generators down the road. It's expensive, but it's well worth the investment. So, along with the St. Regis, The Londoner, it's a big part of our CapEx plan for 2018 and 2019.

Okay. Great. Thank you.

Thank you. The next question is from the line of Felicia Hendrix of Barclays. Your line is open.

Hi. Thank you. Just in Macao, I was just wondering if we could talk about how to think about flow-through in the near term? So, in your second quarter, you grew EBITDA margin sequentially 80 basis points adjusting for hold in this quarter. Seasonally, you tend to grow EBITDA margin. Sequentially, you're just flat to slightly down adjusted for hold. So, in our quick calculations, it shows it might be mix, so I'm wondering if it's mix or is there something else.

Yeah. I think – well, you're absolutely right. Our portfolio is strong across all segments. Our Q3 premium mass grew 18% year-on-year and that's five consecutive quarters of year-on-year growth. Our premium mass drop increased 30% year-on-year and is impacted again by lower than average hold. Our rolling segment at 48%, it was extraordinary year-on-year. But as you know, the margin is partially dictated by the segment mix and each segment's contribution from the mix. In this quarter, we experienced strong rolling volume, up 48% year-on-year for the portfolio. However, the flow-through in this segment as you know is much less than base mass or premium mass. While we're very pleased with rolling volumes, but profitability will always reside for us in the mass, premium mass and we have to have the highest margins in Macao as a result. But again, the third quarter while it was a victory in terms of lots of growth and lots of volume, we didn't translate well into the hold percentage and again the mix situation hurt us there. Of course, year-on-year also, we had the cost issue in Q3 of 2016 which is always confusing and somewhat ambiguous. So, I think long story short, we're over that now. We're moving into Q4. We hope we can continue to experience these high growth in all these segments. We'll hold better in the hold percentage portion of our business, and it will translate to again higher margins. But I would emphasize that our margins continue to be the highest in Macao. Our Parisian property exemplary quarter. The only disappointing part, my perspective is, we could have held a bit better and the mix certainly impacted our overall margin.

I mean, I just wanted to be clear, (51:27) but what I was asking was on hold adjusted, right? So, that would just mean maybe the issue was mainly mix then?

Well, when we present – Felicia, when we present our hold normalized, we're only normalizing for the VIP...

Right.

-- rolling and we're not normalizing for the 300 bps of life hold at Venetian and in premium mass. So we don't actually normalize for that in the presentation that we're giving you.

Got you. Okay. And then just as my follow-up. If we could just talk about Japan for a second. So, now that the election is behind us, I was just wondering if you could walk us through the timeline you see for the Diet to consider and vote on the implementation legislation. I'm just wondering if how the snap elections might have set the process fast, if at all.

If I were – This is Sheldon. If I were to give you an answer on that, I'd be reading it from a crystal ball. Well, no...

It's the one in the closet.

No, that's the other one.

Oh, that's your crystal ball?

– in the other room.

I forgot.

That's where I get my ideas from. It's – there are a lot of people speculating about it, and I read this morning that he's got a super majority. Nobody said he had – he's got a super majority with the Komeito Party. So he could do whatever he wants, as long as he got the Komeito Party to go along with it. The press said that is – there are two things. One is to set up his defense forces again. They were prohibited since World War II, and the other thing is to watch his economic program including the IRS (53:22) with casinos implemented. So you know it's tough, it's tough to read a crystal ball as to what's going to happen there. But different people are saying different things. They say that by November 1, they could open which is in a few days. He did open an extra session of the Diet and not the regular session. So people were speculating and saying that he could pass the Gambling Act and then the Integrated Resorts Act still within this year. So there's – nobody knows for sure. We don't know for sure. We're hoping, we've been optimistic for many years about that. Now it looks better than ever that we'll get the implementation bill, and – but who knows when.

Okay. Thank you.

Thanks, Felicia.

Thank you. Our next question is from the line of Carlo Santarelli of Deutsche Bank. You're your line is open.

Hey, guys. I have two questions. I appreciate you taking my questions. But, really quickly on the first one, and Dan, you're probably best suited to help me on this, but the – it looks to me unless I have something wrong here, it looks to me like it was a 2.9% VIP hold in Macao in the period which reduced your revenue by $18 million and then it looks like there was $28 million of expense. So, despite the fact that their hold optically wasn't high, your EBITDA was down $10 million. Does that just relate to holding a lot higher on the direct side?

That's correct.

That's exactly it. That was it.

That's it.

That's it. You're right.

Okay. Great. Thank you. And then, Rob, when you think about everything as we look at the outlook, obviously the work that's being done at Sands Cotai Central, clearly, the grind mass as Patrick referenced kind of doing a little bit more with recognizing the customers. And having them in the database, as well as the mix of revenue growth on a go-forward basis with VIP kind of currently outpacing the rate of growth in mass both for you guys and for the market. When you think about 2018 putting all that stuff together, directionally, do you guys believe there's an opportunity to grow margins next year?

We'd like to believe there is as revenues continue to grow. We've taken over $310 million of run rate cost out of the business basically in effect last year as we talked about on prior calls, we're very confident to be able to manage cost in the business. But really what we need now is revenue growth. If you want to see margin expansion in Macao, we need to grow revenue. Fortunately the market is growing. And fortunately we believe we have the best asset portfolio there to take advantage of the most valuable segments that are continuing to grow the fastest. So we're very confident in our ability to expand margins over time, but we need revenue growth in order to do so.

Great. And guys, just a quick one on Vegas. Rob, I believe you mentioned Las Vegas is recovering well. The RevPAR in the quarter and kind of the mix that you guys had between occupancy and rate clearly not at all impacted by what happened on October 1. But when you think about your 3Q, is there anything discernible in there just based on the fact that the LVCVA data through August looked pretty solid market wide. I'm assuming there were some larger conventions that were out of September. But is there any color you guys could provide on kind of Vegas for the 3Q?

Into the RevPAR, no. Nothing to it. I think that we're comfortable with our numbers, we're disappointed with some of our gaming numbers, want to see some more growth there, but we're very happy with the lodging numbers, the RevPAR holding up well. Vegas holding up well, it's morphed into a lodging market primarily. And we feel very good about where we're at in the market. So, no more color than that.

Yeah.

Okay. Great. Thank you, guys.

Thanks, Carlo.

Thank you. And that does conclude today's Q&A session.

That's it.

That's it.