Sands May Be Getting Cold Feet over NY Casino
Las Vegas Sands has increasingly emphasized international expansion in recent years, with its focus gradually shifting toward exploring opportunities outside the US. Recently, the company's Chairman and CEO, Rob Goldstein, highlighted concerns about investing in a planned $6 billion casino-resort project on Long Island, New York, a potential hint at furthering the concentration outside of the US market.
Las Vegas Sands' Venetian casino resort in Las Vegas. (Source: Las Vegas Sands)
LISTEN TO THIS ARTICLE:The proposed resort and casino project by Sands is set to be developed near Nassau Coliseum, a prominent venue in Uniondale, Long Island. However, the proposal has met resistance from various quarters, including Hofstra University, which is located across the street from the site.
Related: Las Vegas Sands Eyes Thailand, Other Southeast Asian Markets after New York DelaysOpponents of the plan, including local residents and organizations, have raised concerns about potential increases in crime, traffic congestion, and gambling addiction. In addition, Goldstein's concerns stem from the growing competition posed by online gambling, a development that is reshaping the gambling industry in several states.
During a third-quarter earnings call, Goldstein provided an update on the status of the project. He mentioned that the process for acquiring a casino license in New York is expected to involve submitting applications by the spring, with decisions on the licenses possibly being delayed until the first quarter of 2026.
This timeline marks a shift from earlier expectations that the decision would be finalized by the end of 2025. Goldstein reiterated Sands' interest in the process but voiced his growing concern about the impact of online gambling on traditional, land-based casino operations.
Goldstein emphasized the importance of taking online gambling into consideration when planning large, capital-intensive projects like the one proposed on Long Island. He pointed to the success of online gambling in states like New Jersey, Pennsylvania and Michigan, where revenues from online platforms are poised to surpass those of physical casinos in the near future. He suggested that any company looking to invest in a land-based casino must closely examine the potential impact of online gambling on the market, as it could significantly affect long-term profitability.
New York is currently in the process of considering the legalization of online gambling, a development that could further complicate Sands' plans for the Nassau County project. Goldstein indicated that the company might reevaluate its proposal if online gambling is legalized in the state. He compared the situation to the hypothetical scenario of online gambling being legalized in Singapore, where Sands also operates a casino. In such a case, the company would need to reassess the viability of future investments.
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Casino Project Remains in Legal Tussle
On the legal front, Sands faced a setback in its efforts to move forward with the Nassau Coliseum project. The New York State Appellate Division, Second Judicial Department, recently overturned a lower court ruling that had favored Hofstra University's lawsuit seeking to prevent Nassau County from leasing the 72-acre Coliseum site to Sands.
The appellate court's decision requires further proceedings in Nassau County Supreme Court, and it mandates that Sands be added as a party to the lawsuit. The outcome of this legal battle remains uncertain, but it could have significant implications for Sands' long-term plans.
The legal dispute centers around claims that Nassau County violated state laws, including the Open Meetings Law and the State Environmental Quality Review Act (SEQRA), when it approved the lease agreement with Sands. Hofstra University had argued that the county failed to provide adequate public transparency and did not conduct a thorough environmental review before agreeing to lease the property to Sands in exchange for $54 million. A lower court had ruled in favor of Hofstra's position, voiding the lease agreement, but this decision has now been sent back for further review.
Sands is currently engaged in an environmental review process that is required before it can receive the necessary approvals to develop the casino resort on the Coliseum site. While the company has been granted a lease to operate the Coliseum, its broader development plans remain contingent on overcoming legal challenges and securing a state gaming license. The community group opposing the casino development remains confident that the county will eventually be found at fault in the ongoing legal dispute.
Hofstra University, one of the most vocal opponents of the Sands proposal, has expressed satisfaction with the appellate court's decision to deny Nassau County's motion to dismiss the case. The university's legal efforts, along with those of community groups, have underscored the significant opposition to the casino project, which they believe could negatively impact the surrounding area.
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