Growing online gambling market poses challenges for $6bn Long Island casino project by Las Vegas Sands
In the bustling landscape of New York State, the future of a potential $6bn casino resort is shrouded in uncertainty. Rob Goldstein, CEO and Chairman of Las Vegas Sands (LVS), has expressed reservations about the company's plans to secure a license for this ambitious project.
The competition for the three Downstate casino licenses is fierce, with over ten groups vying for the opportunity. Among them is a casino project backed by music icon Jay-Z, and another resort planned beside the New York Mets ballpark. However, the exact list of competitors remains undisclosed.
Two existing slots parlors in Queens and Yonkers are also in the running for the coveted licenses. The proposed development, if realised, would transform a 72-acre site, creating 8,500 temporary jobs and approximately 5,000 permanent ones.
However, Goldstein's concerns about the impact of online gambling on the viability of land-based casinos loom large. He raised these concerns during a third-quarter earnings call, citing the explosion in popularity of online gambling and the potential shift of revenue from land-based casinos to online platforms.
Industry insiders expect the legalization of online casinos in New York to be a topic of discussion in the coming years. Despite previous unsuccessful attempts, many believe it is inevitable. The increasing popularity of online gambling raises concerns about the future of capital-intensive projects like land-based casinos.
Goldstein's doubts about the long-term viability of such projects are well-founded. In New Jersey, online gambling revenue is expected to surpass land-based revenue in the next couple of years. This trend could potentially impact the profitability of land-based casinos across the country.
One challenge faced by LVS in its proposed casino development at the Nassau Coliseum site is a lawsuit from nearby Hofstra University. Concerned locals have also voiced complaints about the potential impact of the casino on traffic and crime levels.
The New York State Gaming Commission may not issue the three downstate casino licenses until the first quarter of 2026, marking a delay in the process. Interested parties, including LVS, are now expected to submit official applications in spring 2025.
The construction project, if approved, would take at least 18 months to complete. The outcome of the downstate casino licenses is not certain, but one thing is clear: the gambling industry is on the cusp of a significant shift, and LVS's plans for a $6bn casino resort in New York State are not without challenges.
