According to Las Vegas Sands (NYSE: LVS), the building of the Nassau County venue might cost up to $6 billion if it were to receive a New York casino license.

The market-capitalization-largest gaming giant reaffirmed its interest in Texas as well. In late Wednesday, during the operator's fourth-quarter earnings conference call, executives discussed those implications. Although much was said about the operator's attempts to reenter the U.S. market, shares of LVS increased somewhat on Thursday due to strength in the company's Macau and Singapore regions.

"As you know, we’re bidding for a license in New York. We’re receiving strong local support. The cost of the building will be in the $6 billion range, which enables us to develop a true five-star resort,” said CEO Rob Goldstein on the call. “This is a massive opportunity. We are very enthused about the prospect. Our bid is compelling. If we receive the license, we’d be in the ground as quickly as possible.”

Sands is one of about a dozen businesses contending for three licenses to operate casinos in the downstate that New York regulators may grant later this year. The intention of LVS to construct a casino hotel on the Nassau Coliseum property in Uniondale has been resisted by Hofstra University and certain neighborhood associations.

The operator is moving forward with obtaining one of those permits even though a court recently ruled that Nassau County's transfer of the Coliseum's lease to Sands violates New York open meeting regulations. While acknowledging that it's feasible, Goldstein also said, "We don't have any great insight if that will happen." The state may choose the winning bidders this year.

Sands Discusses Texas

Rumors that the operator is considering Dallas as a location for a prospective casino resort grew after Dr. Miriam Adelson, Sheldon Adelson's widow, and the family of LVS CFO Patrick Dumont acquired majority control of the Dallas Mavericks.

Reports indicating that an LLC connected to Las Vegas Sands purchased land close to Texas Stadium in Irving, Texas, last July have added credence to that theory. The operator reaffirmed its optimistic assessment of the second-largest state throughout the conference call.

Sands Projects $6B Cost for New York Casino, Reiterates Texas Interest
Posted on: January 25, 2024, 03:28h.  Last updated on: January 27, 2024, 11:06h.
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Todd Shriber
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Expertise: Financial, Gaming Business, Mergers and Acquisitions.
Las Vegas Sands (NYSE: LVS) has said that should it be awarded a New York casino license, construction costs on the Nassau County venue could reach $6 billion.

Macau debt
Sands China’s Venetian Macau. Las Vegas Sands reported strong Q4 results and discussed New York and Texas opportunities. (Image: Wall Street Journal)
The largest gaming company by market capitalization also reiterated its interest in Texas. Executives made remarks to those effects late Wednesday on the operator’s fourth-quarter earnings conference call. Shares of LVS rose modestly Thursday on strength in the firm’s Macau and Singapore segments, but much was made of the operator’s efforts to reenter the U.S.

As you know, we’re bidding for a license in New York. We’re receiving strong local support. The cost of the building will be in the $6 billion range, which enables us to develop a true five-star resort,” said CEO Rob Goldstein on the call. “This is a massive opportunity. We are very enthused about the prospect. Our bid is compelling. If we receive the license, we’d be in the ground as quickly as possible.”

Sands is among nearly a dozen companies vying for three downstate casino licenses New York regulators could award later this year. LVS wants to build a casino hotel on the site of Nassau Coliseum in Uniondale, an effort met with resistance by Hofstra University and some local organizations.

Despite a court recently ruling that Nassau County’s transfer of the Coliseum’s lease to Sands violated New York open meeting laws, the operator is forging ahead to procure one of those permits. Goldstein added that it’s possible the state will decide on the winning bidders this year but also noted, “We don’t have any great insight if that will happen.”

Sands Talks Texas
Following the acquisition of majority control of the Dallas Mavericks by Dr. Miriam Adelson, Sheldon Adelson’s widow, and the family of LVS CFO Patrick Dumont, speculation intensified that the operator is eyeing Dallas as a spot for a potential casino resort.

Adding to that conjecture are reports confirming that a limited liability corporation (LLC) tied to Las Vegas Sands acquired land near Texas Stadium in Irving, Texas, last July. On the conference call, the operator reiterated its bullish view on the second-largest state.

“In terms of Texas, I think the most important thing is that Las Vegas Sands is actively trying to facilitate the development of integrated resorts in the State of Texas and through the liberalization of gaming,” said Dumont. “And so we’re very excited about it. We think it’s an unbelievable market. Over time, we hope that it happens. I can’t tell you when it’s going to be, but we’re very focused on it as a company, and we like the opportunity to develop some very unique tourism assets, specifically in Dallas.”

Dumont is now the governor of the Mavericks, while now-minority owner Mark Cuban oversees basketball operations.

Analysts Are Upbeat About Sands' Exposure to Asia

At the moment, Marina Bay Sands in Singapore and five integrated resorts in Macau make up Sands' whole portfolio. Analysts are optimistic about Macau, the main operator being Sands China.

In a report to clients on Thursday, CBRE analyst John DeCree stated, "LVS's market-leading room supply is positioned to benefit from the later stages of post-pandemic recovery and overall market growth."

Analyst Chad Beynon of Macquarie reiterated that Sands is among the top Macau stocks to hold. He did so while applauding Marina Bay Sands' earnings. Given its solid management team, capital returns, dominant position in mass, and unparalleled capacity (rooms, tables, and non-gaming), LVS is still a top choice for Macau. In addition, Singapore is still a tremendous source of power and income, the memo reads.