Las Vegas Sands Corp. is closing its digital gaming unit, Sands Digital Services (SDS), and redirecting its strategy toward physical casinos in Asia, including its flagship operations in Macau and Singapore, per the Las Vegas Review-Journal.
The company announced Monday that the decision follows a strategic review by its executive leadership and board of directors, culminating in a realignment of its business priorities. The decision effectively ended the company’s attempt to expand into the U.S. online gambling market
Key takeaways:
- Las Vegas Sands shuts down its digital gaming unit, cutting up to 400 jobs.
- Company shifts focus back to physical casinos in Asia, including Macau and Singapore.
- Digital expansion efforts discontinued amid strategic realignment and market focus.
Strategic Pivot Toward Physical Casinos in Asia
The shutdown will result in the elimination of between 300 and 400 jobs, including about 150 positions in Las Vegas. Employees affected by the closure have been offered opportunities in other parts of the company, although many roles require different skill sets.
Patrick Dumont, current president and chief operating officer who will assume the CEO role next year, said the company’s leadership concluded that further investment in digital gaming no longer aligned with long-term objectives.
“Ultimately, we reached a moment in which it was clear to executive leadership and our board of directors that further pursuit of this business was no longer aligned with the company’s core long-term objectives,” Dumont told the Review-Journal.
Dumont emphasized Las Vegas Sands’ commitment to its key markets in Asia, including Macau and Singapore. He described Macau as “the greatest gaming market in the world” and highlighted ongoing projects such as additional hotel rooms and a new arena at Marina Bay Sands in Singapore.
Caution in Digital Expansion
Las Vegas Sands has historically been cautious about entering the online gambling space, unlike some competitors such as MGM Resorts International and Caesars Entertainment. The company’s founder, Sheldon Adelson, had opposed iGaming, delaying Sands’ digital initiatives until after his death in 2021.
Sands Digital Services was established following the company’s sale of The Venetian and Palazzo properties on the Las Vegas Strip and its acquisition of assets from the digital gambling operator Qbet in 2021. The company also withdrew its plans to seek a New York casino license, citing cannibalization concerns from potential iGaming legalization.
Renewed Emphasis on Core Land-Based Operations
Withdrawing from digital gambling further distinguishes Sands in an industry increasingly focused on online gaming.
As Las Vegas Sands exits its digital venture, it refocuses on the operations of its established physical casinos in Asia. Industry analysts will observe how this strategic consolidation affects the company’s competitiveness in an environment where many peers actively pursue digital expansion.
Dumont sought to assure investors and partners that the company remains dedicated to its business relationships and local communities while maintaining a shareholder-focused approach amid this operational pivot.
