LVS May Reconsider New York Casino amid Pushback, iGaming Growth
Las Vegas Sands (LVS) is continuing to assess its plan to develop a $6 billion integrated resort and casino on Long Island, New York, amid growing concerns about competition from online gaming. Increasing resistance to the project could also cause problems.
LISTEN TO THIS ARTICLE:During the company's fourth-quarter earnings call, CEO Rob Goldstein addressed the challenges of investing in a large-scale land-based casino while facing potential competition from online gaming. A bill introduced in the New York State Senate aims to legalize online casino gaming, a move that has been considered in previous sessions but has yet to be passed. Goldstein emphasized that the inevitability of online gaming expansion in New York presents a major consideration for Sands as it moves forward with its proposal.
The New York casino project is part of the state's broader initiative to award three downstate casino licenses, a process that has drawn interest from several major operators. Sands has proposed a resort surrounding the Nassau Coliseum in Uniondale, which would include a casino, hotel, entertainment spaces, and other amenities. However, opposition from local activists and community groups has intensified, with concerns about traffic congestion, environmental impact, and the potential social effects of a casino in Nassau County.
Grassroots activists under the Say NO to the Casino Civic Association have voiced opposition to Sands' proposal, arguing that it would negatively affect local businesses and increase traffic in the region. Representatives of the group recently met with the Newsday editorial board to present their concerns, citing issues such as increased water consumption, air quality impacts, and potential crime.
They also highlighted the size of the proposed development, which spans nearly 4 million square feet, including 400,000 square feet allocated for casino operations. According to civic leaders, the influx of visitors projected at 10 million annually could strain local infrastructure and detract from existing businesses rather than boosting the economy.
Activists have also questioned Sands' outreach efforts to the community, including donations to local nonprofits and financial commitments to nearby neighborhoods. Some opponents view these efforts as attempts to gain local approval rather than as genuine contributions to the community. While some residents favor alternative developments such as medical facilities, life sciences hubs, or residential spaces, others argue that Nassau County is already overdeveloped and suggest transforming the site into a park or public space.
Overseas Growth Targeted
Even as LVS navigates these challenges in New York, the company remains focused on its operations in Asia. Goldstein and President Patrick Dumont highlighted continued optimism for the company's long-term prospects in Macau and Singapore, despite slight declines in revenue.
The company reported fourth-quarter net revenue of $2.9 billion, reflecting a 0.7% year-over-year decrease. Operating income dropped to $590 million from $710 million in the prior-year quarter, while net income fell from $469 million to $392 million. Despite these figures, Sands executives expressed confidence in Macau's growth potential, citing a 6% increase in gaming revenue during the fourth quarter of 2024 compared to the previous year.
Sands China continues to lead the Macau market in both gaming and non-gaming revenue, with an emphasis on high-value tourism. Goldstein emphasized that investments in properties such as the Londoner Grand, which is undergoing renovations, will further strengthen Sands' position in the region.
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The company plans to have 1,000 suites available for the Chinese New Year holiday, with a total of 1,500 suites ready by May. In Singapore, Sands reported strong results, with $537 million in property-adjusted EBITDA and a 28% rise in mass gaming revenue over 2023. Executives credited the increase to the country's growing appeal as a tourist destination, supported by an expanding entertainment and lifestyle event calendar.
In addition to New York, LVS is pursuing efforts to legalize casino gaming in Texas, where it funds the Texas Destination Resort Association. The organization has been running television advertisements urging lawmakers to support a constitutional amendment allowing casino gaming. However, Goldstein acknowledged that there were no significant updates regarding legislative progress in Texas at this time.
New York Casino Market Moves Ahead
The licensing process for New York's downstate casinos is expected to accelerate in the coming months, with Sands and other operators preparing to submit their full applications by the June 27 deadline. The state requires all applicants to complete environmental reviews and zoning approvals by September 30.
Additionally, projects must receive approval from a Community Advisory Council, composed of local elected officials, before moving forward. The state's Gaming Facility Location Board has indicated that final recommendations will be made by December 1, with official license awards expected by the end of 2025.
Despite the uncertainty surrounding online gaming legalization and community opposition, LVS remains engaged in the licensing process. However, community activists have vowed to continue their efforts to prevent the casino from being built in Nassau County. The Say NO to the Casino Civic Association has gathered over 4,200 petition signatures and has generated more than 1,000 letters to the county legislature in response to Sands' draft environmental impact statement.
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