Las Vegas Sands (LVS) has withdrawn from the high-stakes race to secure a casino licence in downstate New York, citing concerns about the potential legalisation of iGaming and its impact on the long-term viability of a land-based casino investment.
In a statement issued yesterday (23 April), the company said: “We strongly believe in the development opportunity for a land-based downstate casino licence in New York.
“We also continue to believe that the Nassau Coliseum site is the best location for that development opportunity and should be highly competitive in the New York casino licensing process.
“However, as we have previously stated, the company remains concerned about the impact of the potential legalisation of iGaming on the overall market opportunity and project returns,” the company said.
LVS had previously pledged to invest $5bn in the project if its bid for one of three yet-to-be-awarded casino licences would be successful.
The company is now seeking to transfer its rights to pursue a licence at the Nassau Coliseum site to a third party with the capability to address both land-based and digital gambling markets in New York.
Despite stepping back from the bid, the company plans to continue securing necessary entitlements for the site to keep development options open.
The pivot away from New York reflects a shift in LVS’ capital strategy.
“We believe the highest and best use of our capital in the near term is to purchase Las Vegas Sands and Sands China shares,” the company said, emphasising a renewed focus on shareholder returns.
Q1 2025 results
The move comes alongside the release of the company’s financial results for Q1 2025.
LVS reported net revenue of $2.86bn for the quarter, marking a 3.4% year-on-year decline from same period last year.
Quarterly net income dropped 30% to $408m, while operating income also fell to $609m, compared to $717m in Q1 2024. Adjusted property EBITDA came in at $1.14bn, while performance across its properties was mixed.
In Singapore, Marina Bay Sands delivered $605m in adjusted property EBITDA and continued to post strong financial and operating results.
In Macau, where overall market growth has softened, adjusted property EBITDA reached $535m, with a low hold on rolling play slightly weighing on performance.
Bullish on Macau despite US-China tensions
Despite the headwinds in Macau, company executives remain bullish on its long-term prospects.
During the earnings call, president and COO Patrick Dumont described Macao as “the greatest gaming market in the world” and emphasised the company’s deep commitment to the region.
He highlighted the strength and scale of LVS’ portfolio there, including high-end amenities and a continued focus on investment.
Amid questions about growing geopolitical tensions between the US and China—and investor concerns that Beijing might retaliate against American companies—chairman and CEO Robert Goldstein struck a confident tone during the company’s Q1 2025 earnings call.
“We’re not in Mainland China; we’re in Macau,” Goldstein said. “There is a difference.”
“Secondly,” he added, “I think we have an incredible relationship with Beijing and we’ve worked on it for many, many years, and it’s very important to us.
“We’re a big believer in the relationship between China and the US. We’re very disheartened to what’s happening right now. Hopefully, we can get back on track,” Goldstein said.
However, he insisted that the tensions pose no immediate threat to Sands’ business in Macau.
“It doesn’t keep me up at night at all. In fact, I think we’re in a very good position in Macau,” he said.
As part of its capital return strategy, Las Vegas Sands repurchased $450m worth of its own stock during the quarter.
The company’s board of directors approved an increase in its share repurchase authorisation to $2bn.