Las Vegas Sands Drops Out of New York Casino Licensing Race

^{The Nassau Coliseum in Long Island, New York, seen here during a Trump for President Rally in September, will not become the site of a future Las Vegas Sands casino. (Image: Jen Golbeck / SOPA / Zuma)}

Las Vegas Sands has officially removed itself from the race for three available downstate New York casino licenses, dealing a blow to one of the stronger bids among the 10 proposals still in the running before the announcement.

Sands had been planning to develop a casino resort on the site of the Nassau Veterans Memorial Coliseum in Uniondale, located miles outside of New York City on Long Island.

Sands Cites Potential Online Gambling Legalization as Key Factor in Decision

Sands CEO Robert Goldstein spoke about the decision during a conference call with analysts and investors on Wednesday, April 23, where he said the threat of online gambling in the state was a key factor in the decision.

“As we have previously stated, the company remains concerned about the impact of potential legalization of iGaming on the overall market opportunity and project,” Goldstein said. 

Sands is the second potential casino developer to back out of the New York licensing race, following the decision of Hudson’s Bay Company to completely drop a proposal to build a boutique casino in the Saks Fifth Avenue building.

However, Sands is still connected to the Nassau Coliseum for the foreseeable future after lawmakers approved a 42-year lease of the facility to the gaming giant last year. That leads Sands in an interesting position, as it would now like to find a gaming partner to develop a resort on site – as long as they don’t have to do it themselves.

“We are in the process of attempting to secure an agreement with a third party to whom we can transact the opportunity to bid for a casino license on the Nassau Coliseum site,” Las Vegas Sands said in a statement. “This would include those that may be able to address both land-based and digital markets in New York.”

Instead, Sands said it will use available capital to purchase more shares in its primary assets, singling out both Las Vegas Sands and Sands China as near-term investments. 

Nassau Coliseum Casino Could Move Forward with New Gaming Firm

Meanwhile, Nassau County lawmakers say they are still hopeful that the Nassau Coliseum site can still earn a casino license. Legislators will soon decide whether to go forward with another developer, or decide on a different use for the complex.

“Nassau County will crystallize within the next 30 days whether or not to entertain a casino component or develop the site without,” Chris Boyle, director of communications for Nassau County Executive Bruce Blakeman, said in a statement. “In either event there will be an exciting new development that will create jobs and positive economic activity.”

While Sands may well have been spooked by the potential introduction of online casino gaming in New York, there were other factors working against the project. The competition for the licenses is fierce, with two racinos likely to earn two of the three available slots, and other projects like Metropolitan Park seemingly gaining momentum as of late. 

In addition, there was significant local opposition to turning Nassau Coliseum into a casino resort. Hofstra University came out strongly against a resort that would neighbor its campus, and many community groups had questioned the wisdom of adding a casino to the community.

“Hofstra University is pleased with Las Vegas Sands’ decision to abandon their application for a license to build a casino at the Nassau Coliseum,” Hofstra University President Susan Poser said in a statement. “Over the past 90 years, Hofstra has been deeply invested in the future of this region, and we are eager to be a part of planning for development in the Nassau Hub that would promote, sustainable economic growth, enhance the quality of live for all who live and work here, and serve the true needs of Nassau County and Long Island.” 

Opponents of the casino are well aware that the bid isn’t dead yet, and say they will continue to fight a casino resort in Nassau County regardless of which gaming firm is behind it. However, they acknowledge that the loss of Sands as an operator is a serious setback for the proposal.

“Any gambling operator who would buy out Las Vegas Sands from their failed casino bid here in Nassau County is foolish,” Monica Kiely, co-founder of Say No to the Casino Civic Association, told reporters. “Why would somebody take this on when [Sands has] already backed out?”