Las Vegas Sands eyes Long Island for large casino project
Las Vegas Sands (NYSE:LVS) announced its intention to pursue the development of a multi-billion-dollar flagship hospitality, entertainment and casino project on Long Island, New York.
The company said it has entered into agreements to purchase the long-term lease of the site currently home to the Nassau Veterans Memorial Coliseum. The transactions would grant the company control of up to 80 acres in Nassau County, New York.
LVS noted the integrated resort components of a Long Island development would include outdoor community spaces, four and five-star hotel rooms and a world-class live performance venue. The casino operators plans to work with local Long Island communities to co-create a development plan and bid that ensures that the new integrated entertainment and hospitality resort maximizes economic opportunity.
The backdrop for the LVS development is that the New York State Gaming Commission is taking bids for three downstate casino licenses to open up access to the large New York City gaming market.
Union Gaming analyst John DeCree updated recently that downstate New York is the most lucrative remaining greenfield casino opportunity in the U.S., although it will take a sizable investment with the minimum capital investment excluding land/infrastructure at $500M. Of note, the New York gaming board also reaffirmed the $500M minimum license fee, which means interested parties are on the hook for at least $1B of capital. Operators will also have to factor in a statutory minimum gaming tax of 25% on slots and 10% on table games or decide if they want to propose even higher rates to land a license. Earlier in the year, Union Gaming estimated that three full casinos in the New York City area could generate $4.8B of gross gaming revenue.