Las Vegas Sands No Longer Interested in New York Casino
Las Vegas Sands (LVS) has officially withdrawn from the highly competitive race for a downstate New York casino license. After months of hinting at a possible retreat, the company confirmed its decision during its first-quarter earnings call on Wednesday, stating it will no longer pursue the $6 billion integrated resort project initially planned for the Nassau Coliseum site on Long Island.
LISTEN TO THIS ARTICLE:The announcement, made by President and Chief Operating Officer Patrick Dumont, marked a significant strategic shift for the company. It surprised market watchers, as it came without any follow-up inquiries from analysts during the call.
Related: Approval Given for Nassau Coliseum Lease to Las Vegas SandsDespite reiterating its belief in the potential of a land-based casino in downstate New York, LVS cited ongoing concerns regarding the broader regulatory environment, particularly the potential legalization of online gaming in the state. This is a concern that has also been raised previously.
Dumont emphasized that while the company continues to see the Nassau Coliseum site as an optimal location for such a development, uncertainties surrounding the digital gaming market's impact on revenue projections and return on investment prompted a reevaluation of the project's viability.
The company is now seeking to transfer its development rights for the Nassau Coliseum project to a third party that might be better positioned to navigate both the land-based and digital gaming landscapes in New York. Dumont indicated that LVS is actively engaged in discussions to secure such a transaction but did not disclose the identity of the interested parties.
The potential handover reflects the company's desire to exit the New York market while still capitalizing on any remaining value in its earlier efforts.
More Business News
New York Doesn't Hold Significant Value
As part of a broader corporate strategy, LVS is redirecting its focus toward shareholder returns. Dumont stated that investing in the company's own stock offers greater value to shareholders in the near term than pursuing the New York casino license.
Consequently, the company has chosen to allocate capital toward an expanded share repurchase program. The board of directors recently authorized an increase in its buyback plan, raising the total from $1.1 billion to $2 billion as of April 22.
During the first quarter, LVS repurchased approximately 10 million shares of its stock at a weighted average price of $44.59 per share, totaling $450 million. The company noted that future repurchases will depend on a variety of factors, including its financial standing, earnings performance, legal considerations, market dynamics, and the availability of other investment opportunities.
Opposition to the Nassau Coliseum project has been a persistent challenge throughout the proposal's development. Nearby Hofstra University, located directly across the street from the site, has voiced strong objections, citing concerns over potential increases in traffic, crime, and gambling-related issues. These objections, combined with uncertainties around igaming legislation, likely played a role in the company's decision to withdraw from the project.
LVS executives, including Dumont and CEO Rob Goldstein, have repeatedly expressed reservations about the expansion of digital gambling platforms. These concerns were also documented in previous quarterly reports, highlighting the company's cautious stance on integrating online gaming with traditional resort operations.
In addition to its share buyback program, the company maintained its regular dividend payments. For the first quarter, LVS paid a dividend of $0.25 per common share. The next dividend, also $0.25 per share, is scheduled to be distributed on May 14 to shareholders of record as of May 6.
With its focus shifting away from New York, LVS is expected to continue emphasizing its core markets in Macau and Singapore, which received the majority of attention from analysts during the earnings call.
RELATED TOPICS: Business
Latest News
Most Read
Must Read
Interviews
Sweepstakes Casinos: Thriving in an Ever-Changing Industry – Interview with Attorney Stephen C. Piepgrass
Feb 17, 2025
Interviews
Review this New Post
Leave a Comment
User Comments
Comments for Las Vegas Sands No Longer Interested in New York Casino