After legalizing and launching mobile sports betting, New York surpassed markets that have operated for years, bringing record handle and revenues. Amid the growth of the popularity of mobile wagering, lawmakers in the state proposed expansion for the retail gambling sector. Earlier this year, New York lawmakers approved a plan that proposes the creation of up to three new downstate casinos. The proposed locations include Westchester County, New York City, as well as Long Island.
Identifying the potential of the market, many leading gaming companies have already joined the race for a downstate casino license. Las Vegas Sands (LVS), the leading developer and operator of integrated resorts, is one of the companies that joined the race for a New York casino license.
Rob Goldstein, LVS’ CEO, discussed the company’s latest financial results at an earnings call last week. At the time, he spoke about strong Q3 financial results and reaffirmed LVS’ plans to pursue a license in New York. The area where the company anticipates building an integrated resort in Nassau County. Overall, LVS plans to use nearly 100 acres for its new resort and that area includes the Nassau Veterans Memorial Coliseum.
New York Casino Resort Represents a $5bn Investment
Goldstein explained: “We have secured the Nassau Colisino and the process of gaining necessary selling requirements to move forward.” He revealed that the local community supports the company’s project and hinted that the new integrated resort may cost north of $5 billion. Still, Goldstein said that this billion-dollar investment enables the company to deliver supreme entertainment and amenities. Finally, he acknowledged that the project represents a unique opportunity for LVS.
“The resort will cost in excess of $5 billion, but enables us to develop a five-star resort with unlimited appeal. This is simply an extraordinary opportunity.“
Rob Goldstein, CEO at Las Vegas Sands
Patrick Dumont, LVS’ president and COO, also participated in the recent discussion. Speaking about the company’s cash flow, he outlined that LVS is “sitting at about $5.6 billion worth of cash systemwide.”
“We’ll be able to do our concession commitment to Macao and then we’ll have excess capital and we’ll pursue New York, and we’re going to pursue other growth opportunities in new jurisdictions, and we’ll be able to do it all because of the timing of the cash flow, the cash we have on hand and the cash tentative nature of our assets.“
Patrick Dumont, president and COO at LVS
Dumont praised LVS’ operations in Singapore and Macau, explaining they continuously generate cash. Considering the current cash flow, he predicted that the company would be able to continue to invest in its Macau operations while at the same time proceeding with the casino license bid in New York. Dumont did not rule out further investments and pursuing opportunities in emerging markets.