Las Vegas Sands is growing cautious about its $6bn Long Island casino plan due to the explosion in online gambling growth. [Image: Shutterstock.com]

Asking important questions

Las Vegas Sands (LVS) CEO and Chairman Rob Goldstein has expressed some doubts about the company’s plans to get a license to develop a $6bn casino resort in New York State.

questions the long-term viability of capital-intensive projects

Speaking in a third-quarter earnings call on Wednesday, he outlined how the explosion in popularity of online gambling causes concern as it questions the long-term viability of capital-intensive projects.

He noted how online gambling revenue is set to bypass land-based revenue in New Jersey over the next couple of years. While all previous attempts to legalize online casinos in New York were unsuccessful, industry insiders believe it is inevitable in the coming years.

Plenty of obstacles

LVS has proposed developing a casino in Long Island at the site of the Nassau Coliseum. It has already dealt with extensive backlash to the plans, partly in the form of a lawsuit from the nearby Hofstra University, and also in complaints from concerned locals who believe the property would bring higher levels of traffic and crime.

expected to submit official applications in spring 2025

Goldstein also mentioned on the call how it might not be until the first quarter of 2026 that the New York State Gaming Commission finally issues the three downstate casino licenses. This is the latest delay in the process, with interested parties now expected to submit official applications in spring 2025.

Up in the air

Goldstein still said LVS is interested in a New York project once it has “the right capital structure and right licensure process.” The extensive construction project would transform the 72-acre site over the course of at least 18 months, creating 8,500 temporary jobs and about 5,000 permanent ones.

LVS is closely watching the impact of legal online casinos in states with land-based casinos like Pennsylvania and New Jersey to try to forecast the potential impact of legalization in New York.

It’s not a foregone conclusion either that it will receive one of the licenses. Almost a dozen groups are vying for these permits, including a Jay-Z-backed Times Square casino, a resort beside the New York Mets ballpark, and two existing slots parlors in Queens and Yonkers.