Shrinking Casino Race: Las Vegas Sands Abandons $6bn Long Island Bid Over iGaming Fears
New York Casino Competition Abandoned by Las Vegas Sands Due to Ambiguity Regarding Online Gaming
Diving into the thick of things, we're seeing a narrowing battle for New York's three downstate casino licenses, with Las Vegas Sands making a recent exit from the ring. In a first-quarter earnings call, they revealed their plans to step back from pursuing approval for a Long Island project, worth a hefty $6bn in development.
The big reason? Fears about the impending rollout of online casinos in the Empire State. Las Vegas Sands' President and COO, Patrick Dumont, explained the decision, highlighting these concerns as the main culprit behind their withdrawal. Despite no set timeline for legalizing the activity, it seems a certainty in New York.
The company still stands by the project's potential success and the site's suitability for a gaming facility. Instead, they're discussing a potential transfer of their casino bid rights for the Nassau Coliseum to another company. This company could better navigate both New York's online and land-based gaming markets.
Yet, this project wasn't without threats. Hofstra University's proximity put it in the line of fire, while locals voiced worries about addiction, traffic, and crime.
Joining Las Vegas Sands in stepping back from the race is Saks Fifth Avenue. Earlier this month, they announced their decision to abandon a casino license bid for their Manhattan flagship property.
Companies like these are shying away from New York casino licenses, primarily due to concerns about the potential legalization and rollout of online casinos. With the rise of iGaming, traditional brick-and-mortar casinos may see their revenue streams dwindle as online gambling options compete for a slice of the pie. This major shift in the gaming environment introduces a new competitive channel, altering the risk assessment for significant casino developments like those in New York.
So, as the landscape of gambling evolves, we'll likely see companies like Las Vegas Sands and Saks Fifth Avenue adapting their strategies to find a balance between the high cost and risks of land-based projects and the emerging prominence of iGaming.
- The decision by Las Vegas Sands to step back from pursuing a Long Island casino project, worth $6bn, was primarily due to concerns about the potential legalization and rollout of online casinos in New York.
- Instead of pursuing the Nassau Coliseum casino bid themselves, Las Vegas Sands is discussing a potential transfer of their rights to another company, one that they believe could better navigate both New York's online and land-based gaming markets.
- With the rise of iGaming, traditional brick-and-mortar casinos may see their revenue streams dwindle as online gambling options compete for a slice of the pie, introducing a new competitive channel for significant casino developments.
- As the landscape of gambling evolves, companies like Las Vegas Sands will likely adapt their strategies to find a balance between the high cost and risks of land-based projects and the emerging prominence of iGaming.
