Las Vegas Sands abandons bid for New York casino
The company said that while it “strongly believes” in the potential for a casino at the Nassau Coliseum on Long Island, the threat of online gaming cannibalisation was too much to bear. Executives had warned that igaming legalisation could derail its bid in each of the company’s two previous earnings calls.
“Sands has decided not to bid for a casino licence in New York,” the company confirmed in a statement.
No follow-ups or additional comments were given during LVS’ first-quarter earnings call Wednesday. The best use of its capital, the company said, is instead to repurchase LVS and Sands China shares. According to its first-quarter report, LVS repurchased $450 million (£339 million/€396.7 million) worth of shares during the quarter.
Its New York proposal had included a $4 billion integrated resort along with a range of amenities. LVS last July secured a 42-year lease for the site, after a previous 99-year lease had been challenged in court by Hofstra University. The school had been the biggest opponent of the development.
Next steps
The company said it is attempting to offload its bid to a third party that could “address both land-based and digital markets in New York”. This is noteworthy, given that most all of the leading US operators are already tied to their own bids or partnered with others.
If an agreement can’t be reached concerning the property’s future, LVS said, it “will work with Nassau County and other parties to attempt to ensure it is developed consistent with Nassau County’s long-term vision for the site”. The county subsequently said in a statement it would “crystallize within the next 30 days whether or not to entertain a casino component or develop the site without”.
LVS is now the second group to formally pull its New York casino bid. Hudson’s Bay Co., which had proposed a casino at the flagship Sak’s Fifth Avenue retail store in Manhattan, announced its intention to withdraw on 10 April.
Igaming concerns in New York, elsewhere
The concern about igaming in New York specifically is very speculative. There has been little to no progress in those efforts in the state, and the general consensus is that lawmakers prefer to wait until the downstate casino process is further along before tackling that issue. Bids seeking to develop the casinos are due by 27 June, with licences to be awarded by the end of the year.
In the US more broadly, igaming legalisation has ground to a halt, with no new markets coming online since Rhode Island passed legislation in 2023. However, existing nearby markets have exploded, with New Jersey, Pennsylvania and Michigan all posting all-time monthly igaming revenue records in March.
“The results coming out of neighbouring states of New Jersey or Pennsylvania or as far away as Michigan underscore that concern” about igaming’s impact, CEO Rob Goldstein said in January. “So you’ve asked and answered the question, great market, we like to be there. The caveat is how do you deal with the ongoing threat, which appears to me to be inevitable in a lot of states, especially as it has land-based properties coupled with sports betting. I don’t know why you wouldn’t have igaming at some time in the future. So that’s our concern as we look at that market.”
US future uncertain
Now that it has nixed New York, the long-term outlook for LVS in the US is murky at best. The company famously exited Las Vegas, its namesake, by selling off the Venetian-Palazzo for $6.25 billion after founder Sheldon Adelson’s death in 2021. Since then, it has operated strictly in Macau and Singapore.
That said, as recently as six months ago, LVS had been working hard on two significant US developments. In addition to its New York plan, it was heavily invested in efforts to legalise casinos in Texas. Led by Miriam Adelson, LVS’ controlling shareholder, it spent more than $13 million on lobbying in Texas in the leadup to this legislative session. That was up substantially from the $3.3 million spent in the leadup to the 2023 session.
Hopes for both casino and sports betting legalisation quickly faded this session, however, despite renewed optimism. In fact, Texas lawmakers are perhaps even more anti-gambling than before, given a recent lottery courier scandal that has caused some to call for its abolishment altogether.
LVS had proposed a sprawling mixed-use development centred around a casino in Irving, near Dallas. The Adelson family also controls the NBA’s Dallas Mavericks, and there had been speculation that the team would have been relocated to an arena on that proposed site, which is where the Dallas Cowboys’ former Texas Stadium once stood.
However, public opposition turned ugly, causing the company to pull the casino element from the proposal last month.
Dumont: US-China tensions unsustainable
In addition to uncertainty in the US, LVS is also uniquely vulnerable in China. Despite its strong performance in the market, it is the only US-based operator to solely operate in Asia, and is thus tied to both countries.
US President Donald Trump has caused a number of global economic swings in recent weeks related to tariffs. Trump on 2 April announced a litany of so-called reciprocal tariffs levied against dozens of trade partners. Markets tanked in response, but rebounded when a temporary pause was announced. China, however, was not spared, and instead its rates were hiked to 145%. Beijing responded by implementing 125% duties on American goods.
LVS President and COO Patrick Dumont was asked about these tensions during Wednesday’s call. He asserted that his company has “an incredible relationship with Beijing” but is “very disheartened” with how things are playing out.
While he “isn’t losing sleep” over the tensions yet, he was clear in stating he doesn’t believe “this dislocation between the two countries is sustainable”.
Currently, the Trump administration’s position is that there will be “a de-escalation” of the trade war in the “very near future”, per CNBC. Major US indices were up between 1-2.5% at close Wednesday, but they are still largely off from 52-week and all-time highs.