Las Vegas Sands Withdraws New York Casino Bid

There has been a significant change in the competition landscape for New York downstate gaming licenses since the Las Vegas Sands (LVS) formally withdrew its application to build a $4 billion casino resort at the Nassau Veterans Memorial Coliseum in Long Island.

There are drawbacks to losing bids from a major Las Vegas company. However, it makes the rivalry between the nine competitors who are still vying for the three licenses more fierce. The main reason for the Las Vegas company's withdrawal from the contest is its fear that further states adopting online gaming would put too much pressure on them.

Due to community opposition and legal ambiguities, the Las Vegas Sands simply withdrew its offer. Because of this, officials in Nassau County are also looking into other development options for the land, such as non-casino ventures. Within the next month, the county will decide whether to permit a casino or another type of construction.

Even though Caesars Entertainment, Wynn Resorts, and Genting's Resorts World are among the surviving applications, the LVS withdrawal will have some effects on the gambling industry in the larger state of New York. Now that there are three downstate licenses available, the chances for the remaining candidates to get one will be better.

In an effort to take advantage of what is known as a profitable market in New York, the surviving competitors are putting forward plans in other locations. By the end of 2025, the New York Gaming Commission is also anticipated to grant the three downstate licenses.

Stakeholders will keep a close eye on the process, particularly with regard to the possible legalization of online casinos, which might have a favorable or negative effect on the local gaming business. The bidding battle continues despite the LVS withdrawal, which may call attention to the intricate interplay between community interests, regulatory changes, and market forces.

The future of its gaming industry and the elements driving contender decisions will be wisely navigated by New York. The resort would have stimulated local businesses and provided many permanent jobs, thus the $4 billion bid's absence signals a huge loss of opportunities in the regional and economic development strategies.

Over 70,000 jobs are supported by the current casino industry, according to the New York Gaming Commission, underscoring the enormous job growth that could result from the opening of a new casino of LVS's caliber. Additionally, the anticipated tax receipts were considerable, and according to some analysts, the additional funds would have greatly benefited the public interest.

The loss of a full-scale casino resort with restaurants, spas, and weekend stays may be less painful now that internet gambling is permitted. Legalization may present certain challenges for physical casinos and the current gaming market, but it may also open doors for the digital sector to flourish by developing new platforms.

However, in the wake of LVS's withdrawal, state officials and stakeholders are looking at other revenue-generating initiatives in an effort to make up for the missed chances and expedite other projects in the state, whether or not they are tied to casinos. The objectives are to increase online gaming, invest in infrastructure projects with an economic incentive, and encourage tourism.

As the state continues to assess the present and future gaming environments, the emphasis will probably continue to be on striking a balance between economic development, community concerns, and regulatory considerations. The industry's future will be shaped by New York's strategy for granting some downstate licenses in conjunction with its position on the legalization of internet gaming.

Recently, the state proposed Senate Bill (SB) S2614, sponsored by Senator Joseph Addabbo. The bill suggests imposing a 30.5% tax on the net revenue made by internet casinos regulated in New York. There won't be much competition for land-based casinos because the licensing fee will also cost new operators $2 million.

According to experts, this legislation's legalization of internet gambling may bring in about $1 billion annually, which the state might use to support public interests and other economic initiatives. Online casinos are also expected to generate substantially more money than sports betting, which has been a huge success in the state and has brought in $2.3 billion since 2022.

Stakeholders are aware that the potential revenue from internet gambling will make a substantial contribution to the state budget. The lost bid from LVS might be replaced by the suggested measure. Additionally, it could assist smaller businesses incorporate technological improvements to gamify their operations and generate employment through live dealer games.

The SB S2614 bill significantly enhances labor contributions by outlining staff training and development. Legalizing internet casinos offers a workable approach that might stimulate the economy and generate employment as New York looks for new sources of income. The state's development story does not finish with the withdrawal.

Source:

“Las Vegas Sands Drops the Bid for the New York Casino: What Now?” , fingerlakes1.com, June 2, 2025.