New York Casino Competition: Las Vegas Sands Bows Out Over Uncertainty Regarding Online Gaming
Rewritten Article:
The race for the coveted three casino licenses in downstate New York is heating up, with Las Vegas Sands joining the list of companies stepping back. In a surprising move, the COO and President, Patrick Dumont, announced on a recent earnings call that they're abandoning a planned $6bn project on Long Island because of the brewing cloud over online casinos in the Empire State.
Though there's no specific timeline for making online gambling legal, it's a foregone conclusion in the state. With increasing talk about legalizing it, Vegas Sands remains optimistic about the project's success, but they're exploring options to transfer the building rights to a company that can operate both in the online and land-based casino markets.
However, the project faced a significant hurdle from neighboring Hofstra University, while locals expressed concerns over addiction, traffic congestion, and crime. Vegas Sands is now concentrating their resources on buying back up to $2bn of their company stock. They aren't the only ones making such a move—last month, Saks Fifth Avenue announced they wouldn't be pursuing a casino license for their iconic Manhattan property.
Online Casinos in New York
As of now, online casinos are still illegal in New York, but legislative efforts to change this are ongoing. With a proposed 30.5% tax rate and up to 31 operator licenses potentially up for grabs [1], conversations about expanding gambling online persist. However, challenges such as competing bills and regulatory complexities delay any definite timeline for the passage of the bills [3].
Recent years saw the legalization of sports betting in New York, generating over $2.3B in tax revenue. Meanwhile, efforts to prohibit online sweepstakes games like High 5 Casino have already started [4][5]. While the momentum for iGaming legalization exists, New York’s timeline remains uncertain as legislators work towards reaching a consensus.
- The race for casino licenses in downstate New York is intensifying, with Las Vegas Sands stepping back from a proposed $6bn project on Long Island due to potential online casino regulations.
- Patrick Dumont, COO and President of Las Vegas Sands, announced the decision to abandon the project in a recent earnings call.
- Despite no definite timeline for online gambling legalization in New York, it's widely expected to happen.
- Vegas Sands is investigating possibilities to transfer the building rights to a company capable of operating in both the online and land-based casino markets.
- The Las Vegas Sands project encountered opposition from neighboring Hofstra University and local concerns about addiction, traffic, and crime.
- Vegas Sands is now focusing on buying back up to $2bn of their own company stock, a move that was also recently made by Saks Fifth Avenue.
- In the meantime, online casinos remain illegal in New York, yet legislative initiatives to change this are underway.
- A proposed tax rate of 30.5% and up to 31 operator licenses are potential implications of legalizing online gambling.
- The legislative process is buffered by competing bills and complex regulations, delaying the passing of any definite bills.
- The legalization of sports betting in New York created over $2.3B in tax revenue, while efforts to ban online sweepstakes games such as High 5 Casino are underway.
- Though the momentum for iGaming legalization exists, New York's timeline remains unclear as lawmakers work towards a consensus.
- The diversification of the gambling industry, including legalizing online casinos, can provide valuable investment opportunities in the related sectors like finance, real-estate, and fintech.
- A thriving casino industry can create new business ventures, careers, and even boost the local housing market.
- Alongside the growth of the casino and gambling industry, responsible gambling advocates emphasize the need for education and resources to help those struggles with addiction.
- The casino industry, when combined with other sectors like banking and insurance, banking-and-insurances, and car-accidents, can create a more complex landscape of policy-and-legislation and crime-and-justice consequences.
- As the casino and gambling landscape shifts due to legal changes, international trends, casino-personalities, and political involvements will continue to influence gambling-trends and war-and-conflicts, causing fires and accidents, and requiring responsible policymaking and advocacy.
