The race for three downstate New York casino licences has dwindled to nine applicants as Las Vegas Sands (LVS) announced plans April 23 to withdraw its bid, citing iGaming concerns.
The company said that while it “strongly believes” in the potential for a casino at the Nassau Coliseum on Long Island, the threat of online gaming cannibalisation was too much to bear. Executives had warned that iGaming legalization could derail its bid in each of the company’s two previous earnings calls.
“Sands has decided not to bid for a casino licence in New York,” the company confirmed in a statement.
No follow-ups or additional comments were given during LVS’ first-quarter earnings call later that day. The best use of its capital, the company said, is instead to repurchase LVS and Sands China shares. According to its first-quarter report, LVS repurchased $450 million worth of shares during the quarter.
Its New York proposal had included a $4 billion integrated resort along with a range of amenities. LVS last July secured a 42-year lease for the site, after a previous 99-year lease had been challenged in court by Hofstra University. The school had been the biggest opponent of the development.
The company said it is attempting to offload its bid to a third party that could “address both land-based and digital markets in New York.” This is noteworthy, given that most all of the leading U.S. operators are already tied to their own bids or partnered with others.
If an agreement can’t be reached concerning the property’s future, LVS said, it “will work with Nassau County and other parties to attempt to ensure it is developed consistent with Nassau County’s long-term vision for the site.” The county subsequently said in a statement it would “crystallize within the next 30 days whether or not to entertain a casino component or develop the site without.”
LVS is now the second group to formally pull its New York casino bid. Hudson’s Bay Co., which had proposed a casino at the flagship Sak’s Fifth Avenue retail store in Manhattan, announced its intention to withdraw on April 10.
