LVS officially drops bid for New York casino

The competition for the three downstate New York casino licenses has narrowed to nine contenders, following Las Vegas Sands (LVS) announcing its withdrawal from the bidding process on April 23. The decision stems from growing concerns regarding the impact of online gaming on traditional casino operations.

In a formal statement, LVS expressed its unwavering confidence in the potential of a casino at the Nassau Coliseum on Long Island. However, executives highlighted that the possibility of igaming cannibalizing market share posed an insurmountable challenge. Throughout previous earnings calls, the company consistently indicated that the legalization of online gaming could jeopardize their casino ambitions in New York.

“Sands has decided not to bid for a casino license in New York,” the company confirmed in its announcement.

No additional comments or follow-ups were provided during LVS’s first-quarter earnings call, where the company indicated that its current strategic focus will be directed towards share repurchases. According to the first-quarter report, LVS allocated $450 million (£339 million/€396.7 million) for this purpose during the last quarter, seeking to optimize its capital allocation.

LVS had outlined an ambitious proposal featuring a $4 billion integrated resort, replete with various amenities. In July of the previous year, the company secured a 42-year lease for the site, which followed a legal challenge from Hofstra University, the primary opponent of the development.

Next Steps

In light of its withdrawal, LVS has indicated an intention to find a third-party buyer who can navigate both the land-based and digital gaming markets in New York. This situation is significant, as most major operators have either committed to their own bids or partnered with others in the race for downstate licenses.

Should LVS fail to secure a partnership for the property’s future, the company plans to collaborate with Nassau County and other stakeholders to ensure development aligns with the county’s long-term vision for the site. Nassau County has announced it will clarify its stance on the casino proposal within 30 days, determining whether to integrate a casino component or pursue alternative developments.

LVS marks the second entity to withdrawn from the New York bidding process, following Hudson’s Bay Co., which proposed a casino at its flagship Saks Fifth Avenue store in Manhattan and announced its exit on April 10.

Concerns About Igaming in New York and Beyond

The apprehension surrounding igaming in New York remains largely speculative. Currently, there has been minimal movement towards legalizing online gaming in the state, and legislators seem inclined to prioritize the downstate casino process before addressing igaming concerns. The deadline for casino proposals is June 27, with licenses expected to be awarded by the end of the year.

Nationally, the trajectory of igaming legalization appears stagnant, with no new markets emerging since Rhode Island adopted legislation in 2023. Conversely, existing jurisdictions like New Jersey, Pennsylvania, and Michigan have seen record-breaking igaming revenue in March, illuminating the potential profitability of the sector.

In March 2025, Pennsylvania’s total gaming revenue reached unprecedented heights of $574.5 million, with igaming accounting for $238.2 million—$15 million more than the previous record in December 2024, as reported by the Pennsylvania Gaming Control Board.

“The performances of neighboring states like New Jersey, Pennsylvania, and even Michigan underscore the growing concern about the impact of igaming,” remarked LVS CEO Rob Goldstein in January. “While we recognize the attractiveness of these markets, we remain apprehensive about the inevitable encroachment of igaming, particularly as markets integrate sports betting and land-based properties.”

The Uncertain Future of LVS in the United States

With its withdrawal from the New York market, LVS’s prospects in the U.S. appear uncertain. The company previously departed from Las Vegas, selling the Venetian-Palazzo for $6.25 billion following the death of founder Sheldon Adelson in 2021. Since then, its operations have been confined to Macau and Singapore.

Despite this setback, LVS had been actively pursuing two significant developments within the United States. Alongside its New York endeavor, the company eagerly sought to advance casino legalization efforts in Texas, with controlling shareholder Miriam Adelson spearheading a lobbying campaign that invested over $13 million in the latest legislative session, nearly quadrupling from the $3.3 million spent in the prior session.

However, aspirations for both casino and sports betting legalization faltered during this session, even as momentum appeared to build initially. Current sentiments in Texas suggest a stronger anti-gambling stance, intensified by a recent lottery courier scandal that some lawmakers argue warrants the abolition of the lottery altogether.

The original proposal by LVS for a mixed-use development centered around a casino in Irving, near Dallas, was met with significant public opposition, forcing the company to eliminate the casino element from its proposal last month.

Global Economic Challenges and LVS’s Vulnerability

Beyond uncertainties within the U.S., LVS faces particular vulnerabilities related to its operations in China. As the only publicly traded U.S. casino operator focusing solely on the Asian market, its fortunes are closely intertwined with geopolitical dynamics.

Recent actions taken by the Trump administration, including the imposition of tariffs on numerous trading partners, have led to economic fluctuations that impact LVS directly. Following the announcement of reciprocal tariffs on April 2, the company experienced market volatility, exacerbated by new duties imposed on U.S. goods by Beijing.

During the recent earnings call, LVS President and COO Patrick Dumont addressed these tensions, expressing concern about their sustainability, yet he maintains an optimistic outlook regarding the company’s relationship with Chinese authorities.

While Dumont does not currently perceive the tensions as a major risk, he emphasized the importance of developing a stable economic environment moving forward amid ongoing global tensions.