Las Vegas Sands Pulls Out Of Downstate New York Casino Bid

Las Vegas Sands announced Wednesday night it was withdrawing from a planned bid for a casino in Nassau County, further thinning the field for the three available New York downstate casino licenses.

At the end of prepared remarks during the company’s first-quarter earnings call, Sands President and COO Patrick Dumont said, “The company remains concerned about the impact of potential legalization of iGaming on the overall market opportunity and project returns.” He added the gaming company felt the “highest and best use of our capital in the near term is to purchase [Las Vegas Sands] and [Sands China] shares” as part of a potential repurchasing of shares up to $2 billion.

Despite withdrawing from the bid, Dumont said Sands believes the Nassau Coliseum “is the best location for that development opportunity and should be highly competitive” in the casino bidding process. He added Sands would attempt to transfer its right to bid for a license at the Nassau Coliseum site to another company.

If Sands cannot find another company for the gaming portion of the bid, it would likely increase the chances that one of the three licenses awarded will be to a group wanting a Manhattan-based casino. There are currently four such bids among the remaining nine:

• The Avenir, which would put a casino on the West Side of midtown Manhattan.
• Jay-Z’s Roc Nation and Caesars, which want to bring a gambling venue to Times Square.
• The Soloviev Group and Mohegan, which have proposed a casino on the Upper East Side near the United Nations Plaza.
• Wynn Resorts and Related, who have laid out plans for a gaming complex in Hudson Yards on the West Side of the city.

Is iGaming a truly viable threat?

Las Vegas Sands may be viewing iGaming as a threat in New York by the time a downstate casino could open, which figures to be in late 2027 or 2028. There has been little appetite for internet casino expansion in statehouses nationwide this year, and a bill filed by New York state Sen. Joseph Addabbo is currently languishing in committee. Additionally, Sands has had a long-standing opposition to online casino gaming dating back to its previous owner, the late Sheldon Adelson.

Addabbo, who spearheaded the legalization of mobile sports betting in the Empire State that launched in January 2022, has long been a leading proponent of expansion into iGaming. Gov. Kathy Hochul, however, has shown little appetite for that endeavor.

Addabbo has since turned his attention toward getting online sweepstakes casinos banned in New York. Brick-and-mortar casino operators could view that as a precursor to the state expanding into iGaming.

That is not unreasonable given mobile sports betting can be labeled a huge success in New York based on the amount of tax revenue it has generated thanks to a 51% rate. In the 39 months since launch, the state has collected over $2.9 billion worth of receipts that have been earmarked for education.

A helping hand via consultant

The New York State Gaming Commission on Tuesday put forth a Request for Proposal (RFP) seeking a consultant for the Community Advisory Committees (CAC). The position’s contract begins June 27, with two rounds of questions-and-answers with the commission taking place in May.

According to the description listed on the New York State Contract Reporter website, the Consultant will:

“provide organizational, technical, logistical and administrative support to each Community Advisory Committee (“CAC”) while ensuring each operates in compliance with laws and regultions and that requirements of the Open Meetings Laws are met. The Consultant will assist and manage the community advisory committee process and provide administrative support and technical assistance for the establishment of activities of the committees.”

Each CAC for New York City-based casino proposals will be comprised of six members: one appointed by Hochul; one appointed by New York City Mayor Eric Adams; one appointed by the New York state senator representing the district where the proposed facility is located; one appointed by the New York state assemblyperson representing the district where the proposed facility is located; one appointed by the borough president representing the district where the proposed facility is located; and one appointed by the city councilmember representing the district where the proposed facility is located.

CACs outside the New York City region will be comprised of five members. The consultant is tasked with taking steps to “ensure the formation of the CAC” as well as “design applications and other relevant documents” to the committee. The consultant is not permitted to “advise the CAC on the merits of any application nor provide information not found in the applicant’s application, information the CAC is not charged with reviewing, or information the CAC is not charged with making a finding of support or disapproval.”