Global casino and resort company, Las Vegas Sands, had decided to withdraw its bid for a New York gambling license. The decision to withdraw its bid marks a surprising turn for the company, which had heavily campaigned to establish a multi-billion-dollar entertainment resort at the site of the Nassau Coliseum on Long Island.

The Las Vegas Sands announced their decision in April, citing growing regulatory uncertainty and a shifting market as key factors. As Las Vegas Sands withdraws their bid for a New York gambling license, the state of New York is preparing to issue three full-scale casino licenses in the downstate region by the end of 2025.

A Shift in Direction and Regulatory Compliance

Las Vegas Sands representatives confirmed the company’s decision not to pursue the Nassau Coliseum location any longer. An important factor that they mentioned was the concern about the potential legalization of iGaming and online casinos in New York. Currently, online casinos are not regulated in New York. However, New York residents have the option of accessing online casinos that allow VPN.

VPN friendly casinos allow New York residents to access offshore online casino games while the regulatory framework for online casinos is still being established. Senator Joseph Addabbo introduced Senate Bill S2614 in January with the hopes of potentially legalizing online casinos. He proposed the bill after realizing many citizens were turning to offshore platforms because they preferred the advantages online platforms offer, such as generous welcome bonuses, fast and secure payment methods, and a wide variety of games.

As New York citizens wait for the potential legalization of online casinos, they still have access to many regulated casinos and betting options in the state. Currently, New York has four retail brick-and-mortar casinos that residents can visit. In addition, they can also access sports betting apps and sweepstakes casinos online.

The New York Gambling License Environment

The New York State Gaming Commission (NYSGC) is in the process of working on issuing three downstate casino licenses. When approved, these licenses could generate billions of dollars in private investment and generate thousands of jobs for New York Residents. The Chairman of the NYSGC, Bryan O’Dwyer, has recently confirmed that the state is well on its way to issuing these licenses and expects the process to be concluded by December 2025. He has gone on to state that the methodical process is critical in ensuring the licenses are issued with fairness and transparency.

The Las Vegas Sands’ withdrawal has made the list of companies bidding for these licenses smaller, leaving contenders like Hard Rock International, Caesars Entertainment, Bally’s Corporation, and Genting Group.

Sites being considered for new casinos in the New York area range from Manhattan’s West Side to Citi Field in Queens. While other companies have increased their lobbying efforts to secure their bids, Long Island officials have expressed their disappointment in losing The Las Vegas Sands bid, stating that the proposed resort would have been a benefit for local tourism.

Online Gaming’s Looming Presence

Central to Sands’ withdrawal is the uncertainty regarding online gaming legislation in New York. If Senate Bill S2614 is passed, online casinos in New York could be launched by late 2025 or early 2026. The legalization of online casinos will expand New York’s online betting market, adding to the existing legalized sports betting and sweepstakes casino industry in the state.

Senate Bill S2614 could see the authorization of 32 online casino licenses if passed in 2025. This poses a big risk for brick-and-mortar casino operators like the Las Vegas Sands, which could lose billions of dollars in the state if New York residents can access the same casino games offered by a land-based resort from the comfort of their own homes.

The Sands’ fears are not unjustified as the global market for online casino games continues to rise. Players are turning to online casinos for their convenience and accessibility. Many online platforms also offer stricter security and privacy as compared to land-based casinos.

Implications for Las Vegas Sands

The Sands’ decision to withdraw its bid for a New York gambling license reflects a broader shift in its business focus. The company sold its Las Vegas properties in 2022, signaling its intention to invest more into its Asia operations while exploring U.S. markets that posed lower financial risk with higher long-term potential. New York’s slow licensing approval process could have highlighted a potential unnecessary risk for now, causing the company to cease its pursuit of the license.

Following the decision to withdraw, it is expected that the Las Vegas Sands company will reinvest its capital in areas that have a clearer regulatory environment. Investors noted that while the withdrawal removes Sands from a potentially high-earning market, it mitigates costly delays and legal battles.

Effects on the State of New York

Sands’ withdrawal has varying consequences for New York. On the upside, it simplifies the process for completing remaining applications. The narrowing of the competition allows the NYSGC to focus on fewer large-scale applications, meaning that it can be more thorough and consider all factors methodically. On the downside, the withdrawal puts another delay on the redevelopment plans for Nassau County, which could reduce projected investments.

Despite the challenges being faced, New York Governor Kathy Hochul remains optimistic about the economic benefits that new casinos can bring to the state. For this reason, the state remains committed to completing the licensing process, highlighting the potential job creation and long-term tax revenue these licenses could lead to.

Conclusion

New York’s gaming narrative has undergone a defining moment following the decision from the Las Vegas Sands company to withdraw from the New York gambling license race. As the process for issuing new gambling licenses in New York continues and legislators debate the future of online casinos in the state, it has become clear that the casino industry in New York is evolving rapidly.

While land-based casinos and casino licenses are important sources of revenue for the state, the future of the casino industry in New York could be digital, and traditional casino companies are bracing themselves for this transformation.