Las Vegas Sands Corporation’s (LVS) proposal for a Long Island casino might be doomed by the company’s longtime opposition to online gambling, even if it survives pushback from local interests.
Sands has proposed a $6-billion resort casino near Nassau Coliseum to secure one of three downstate New York casino licenses. However, on Wednesday, Sands’ CEO and chairman, Rob Goldstein, voiced his concerns about investing billions in a casino only to face competition from online gambling later. The comments, delivered during an LVS third-quarter earnings report, call Sands’ commitment to their New York plans into question.
Opponents of the project, including neighboring Hofstra University, have argued the possible increase in crime, traffic, and addiction is not worth it. However, despite opposition, the Nassau County Legislature recently approved LVS’ 42-year lease of the Nassau Veterans Memorial Coliseum.
Sands remains interested in obtaining a license, said Goldstein. However, he added that LSV can’t ignore the reality of recent growth in online gambling.
We remain interested in the process. The only concern I have these days is the ongoing strength of online gambling. You can’t ignore what’s happening in New Jersey, Pennsylvania, and Michigan. We build capital-intensive buildings that require a long-term perspective. There has to be some way to think about the online impact, no matter where you are in the U.S. I’ve been looking at it closely. I would love to be in New York with the right capital structure and right licensure process. This is the newest wrinkle. My personal thinking has been influenced somewhat by the last six months of the growth of online gambling.
Goldstein: Sands Can’t Ignore Online Impact
On the call, Goldstein said New York expects casino operators to begin submitting formal applications in the spring. However, he said that he’d just learned that final licensing decisions might not come until Q1 2026, months later than the previous estimate.
Goldstein said he’s been watching the progress of online casinos in neighboring New Jersey and that he believes online gambling revenue will exceed land-based casinos within a matter of years. He called that development “pretty exceptional,” but the problem for LVS is that it has long shunned the idea of entering the iGaming vertical.
Meanwhile, Sen. Joseph Addabbo is spearheading a push for New York to join New Jersey in legalizing online casinos and poker. Analysts on the call asked Goldstein if Sands would reconsider its Nassau proposal if that effort comes to fruition.
Goldstein said Sands can’t ignore the potential impact that would have on its investment.
If Singapore legalized online gambling, it would make you stop and think (about investments). If any market does legalize it, you think, what does it mean to me and my capital investment? There has got to be some resolution… You can’t ignore the impact on land-based revenue of online in New Jersey, Michigan, Pennsylvania, and the other four states coming online.
Sands Founder Opposed Online Gambling to the End
Goldstein’s concern and Sands’ online aversion echo former LVS founder, chairman, and CEO Sheldon Adelson’s historic opposition to online gambling. In 2019, under Adelson’s leadership, LVS even sold Sands Bethlehem, its Pennsylvania property, after the state legalized online casinos and sportsbooks.
LVS had a short, failed flirtation with B2B online gambling. However, since Adelson died in 2021, the company has otherwise upheld that opposition. Indeed, LVS Corp seems focused on its Macau business and pushing for legal casino gambling in Texas. Notably, legal online gambling is unlikely to come to Macau or Texas in the foreseeable future.
Even in New York, the short-term odds are against Sen. Joseph Addabbo Jr.’s online casino efforts, but the chance improves in the long term (five to ten years).
Considering as much, if LVS wants to avoid competing with online casinos, getting cold feet with New York legislation potentially on the horizon makes sense.
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