Sands Concerned About NY iGaming, Eyes Thailand Casino

Posted on: January 30, 2025, 03:41h. 

Last updated on: January 30, 2025, 03:41h.

Las Vegas Sands (NYSE: LVS) remains interested in bringing a casino hotel to the New York City market, but the operator is aware that iGaming could become a reality in the state, potentially presenting challenges to brick-and-mortar gaming venues.

Kelvin, 7UP baccarat, Marina Bay Sands, cheating, Chai Hee Keong, Wang Yu and Hung Yu-Wen
The Marina Bay Sands in Singapore. Operators Las Vegas Sands is interested in Thailand and concerned about iGaming in New York. (Image: Dezeen)

On a Wednesday conference call to discuss the release of the operator’s fourth-quarter results, Sands CEO Robert Goldstein fielded a question from an analyst regarding New York where the gaming company is aiming to build an integrated resort at the site of Nassau Coliseum in Uniondale. He reiterated the operator’s interest in New York while noting the specter of internet casinos cannot be ignored.

I think you have to agree with your comment that sometime during the construction phase you could be faced with iGaming competitor which dilutes the value of the product.,” said Goldstein. “So that’s our conundrum and you said it well. The results coming out of neighboring states like New Jersey or Pennsylvania or as far away as Michigan underscore that concern.”

New York isn’t one of the seven states that currently allow iGaming, but the state is expected to consider related legislation this year and it’s likely not lost on Empire State policymakers that neighboring New Jersey is hauling in significant tax revenue from online casinos.

“I don’t know why you wouldn’t have iGaming sometime in the future. So that’s our concern as we look at that market,” added Goldstein regarding New York.

Sands Talks Thailand

Sands previously indicated interest in mulling a bid for a casino permit in Thailand where the gaming legislation is rapidly advancing. President and CFO Patrick Dumont called the Southeast Asian nation an “unbelievable tourism destination.”

In response to a question from Barclays analyst Brandt Montour, the LVS executive addressed concerns that should the company eventually open an integrated resort in Thailand it’d potentially cannibalize Marina Bay Sands in Singapore. He’d acknowledged that while some tourists visit both countries and some that go to Singapore would be apt to want to try out new gaming venues in Thailand, Marina Bay Sands’ unique positioning could buffer against it competitive threats in Thailand.

“I think if you look at what we have in Singapore, it’s specifically tied to the highest level of high value tourism,” Dumont said on the call. “It’s rarefied air when you look who’s in that environment and the type of consumption that’s there and the type of both business and leisure tourism that takes place.”

He added that there’s still work to be done in Thaiand, but it could be a compelling opportunity for Las Vegas Sands.

LVS Stock Surges

In a sign that investors may finally be seeing value in Macau casino stocks, shares of LVS soared 11.12% today on volume that was more than double the daily average after the operator unveiled fourth-quarter results. Strength at Marina Bay Sands was widely viewed as the catalyst for today’s pop by the stock. The operator boosting its quarterly dividend by 25% helped matters.

Stifel analyst Steven Wieczynski noted Sands is trading at deeply discounted levels relative to historical norms and that there’s a path to $60+, implying upside of at least 25% from today’s closing price.

“We believe LVS’ Singapore asset is worth ~$37/share which shows investors are getting the Macau assets for a discounted price, which we view as unrealistic over the long-term,” observed the analyst. “LVS continues to have one of the best balance sheets in the gaming industry. This should allow the company to continue repurchasing their shares or their Hong Kong shares.”