The CEO of Las Vegas Sands suggested on an earnings call this week that the potential of New York legalizing online casino gambling could prompt the company to re-evaluate its land-based plans in the state.
Sands is one of numerous casino companies currently engaged in the licensing process for a new downstate New York casino. The company has outlined a proposal to construct a $6 billion casino and resort near the Nassau Coliseum on Long Island.
But, as the eternal debate continues about the impact of online gaming on traditional land-based casino gambling and online gaming, CEO Robert Goldstein admitted that it’s hard not to be swayed by how brick-and-mortar business has been affected by the rapid proliferation of online casino in New York’s neighboring states of New Jersey and Pennsylvania.
“I’ve always been the biggest advocate for New York and other jurisdictions,” Goldstein said. “The only concern I have these days is the ongoing strength of online gambling. We can’t ignore what’s happening in New Jersey, in Pennsylvania, in Michigan.”
New York iGaming a hot topic in 2024
Part of Goldstein’s concern is that building a new physical casino and all of its associated amenities takes years. While the legislative process of launching iGaming is often long and arduous, if New York opened an online market tomorrow, numerous big-name operators would be waiting at the gates ready to launch on day one.
Despite the cannibalization debate continuing to be a sticking point in legislative discussions, the push for online gambling gained continued this year. Sen. Joe Addabbo introduced Bill S8185 early in the year and has garnered support from some quarters, although a summer survey found only 44% of respondents were in outright support.
Goldstein stressed that, while mulling over a huge investment like a New York casino, the potential of an online market opening in the next year or two is a crucial consideration.
“I need some understanding of how the market thinks about online gambling,” Goldstein added. “If any market does legalize it, you have to think ‘what does it mean to me and my capital investment?’ It makes you stop and scratch your head. You can’t ignore that possibility when you see the impact of online in New Jersey, Pennsylvania, Michigan on land-based revenue.”
“I’d love to be in New York with the right capital structure and the right licensure process but that’s the wrinkle… My personal thinking has been influenced somewhat over the last six months as I see the growth of online gambling. It’s something to think about as we move forward.”
“I think sometime in the next year or two, we’ll see online exceed land-based revenues in New Jersey, which is pretty exceptional,” noted Goldstein.
New York casino timelines pushed back again
Despite his reservations, Goldstein insisted to investors and analysts that the company remains interested in the process. He also revealed that the timeline appears to have been pushed back again.
“The thinking right now is that the applications for licensure will be submitted sometime in spring of ’25. This morning, I was told [it] will probably be the first quarter of ’26 before they actually make a decision.”
The application process was set to be complete by late 2025. A different Addabbo bill, designed to speed up the bidding process significantly, flatlined when it was left unsigned by Gov. Kathy Hochul after passing through the House and the Senate.
At a New York Gaming Facility Location Board meeting in late June, board members approved a new bid deadline of June 27, 2025, with the board’s approval deadline penciled in for Dec. 31, 2025. Based on Goldstein’s comments, the final approval deadline now stretches into 2026.
