Las Vegas Sands Corp. announced the cessation of its online gambling subsidiary, Sands Digital Services (SDS), which will result in approximately 400 employees losing their jobs. The group stated that it will refocus on its core businesses in Macau and Singapore, continuing the strategy of focusing on the Asian market after selling its U.S. operations in 2021. This move signifies a continuation of founder Sheldon Adelson's stance against online gambling, despite the company's brief foray into the digital gambling sector following his death in 2021. Sands Group also confirmed that it has abandoned its bid for a casino license in New York, fearing that future legalization of iGaming could impact the revenue of physical casinos.
Strategic Adjustment and Business Closure
Las Vegas Sands Corp. announced the termination of its online gambling subsidiary, Sands Digital Services (SDS). Initially reported by the Las Vegas Review-Journal, this marks the group's formal exit from the iGaming sector.
This strategic adjustment will result in approximately 400 employees losing their jobs, with group President and CEO Patrick Dumont notifying affected employees, explaining the background and reasons for the company's decision.
Management Decision Statement
Sands Group President and CEO Patrick Dumont stated in a letter to employees: "Our investment in SDS was based on an understanding of the most pragmatic path forward after multiple evaluations. Ultimately, pursuing this business no longer aligns with the company's core long-term goals."
Dumont emphasized that this decision was a strategic choice made after comprehensive evaluation, aimed at focusing company resources more on core business areas.
Founder's Legacy and Historical Stance
The late founder of Sands Group, Sheldon Adelson, was known for his strong opposition to online gambling. He had pledged to stop this "social harm" at all costs and launched the "Stop Internet Gambling Alliance" in 2014.
In 2001, Adelson stated: "If this were to happen, we would want those who know what they're doing to control it," showing his ambivalent attitude towards online gambling.
Brief Digital Business Attempt
After Adelson's death in 2021, Sands Group invested in Curacao-based iGaming provider Qbet in 2022, subsequently launching the SDS division, planning to offer live dealer streaming platforms to licensed jurisdictions.
This brief attempt at digital business has now ended, with the company returning to its traditional business focus.
Focus on Asian Market Strategy
In 2021, Sands Group sold its U.S. gambling operations, including the Venetian and Palazzo hotels on the Las Vegas Strip, to focus on the Asian market. The closure of the digital department is a continuation of this strategy.
Dumont noted in the letter: "We are fortunate to operate in the two best markets in the industry—Macau and Singapore. Over the past twenty years, we have set a benchmark for investment in our land-based property portfolio."
Current Status of Macau and Singapore Markets
In Macau, online gambling is illegal, and Sands Group operates five integrated casino resorts in the region. These physical businesses have become the core source of revenue for the group.
In Singapore, online gambling is limited to Singapore Pools, which offers lottery, horse racing, and sports betting services. The Singapore Gambling Regulatory Authority prohibits all other forms of remote gambling.
New York License Bid Abandonment
Sands Group previously abandoned its plan to bid for a casino license in New York this year, citing concerns that future legalization of iGaming could potentially harm the revenue of physical casino businesses.
The company initially planned to build a $4 billion resort at the Nassau Veterans Memorial Coliseum on Long Island but ultimately decided to withdraw from the bidding.
Industry Impact and Employee Placement
The closure of SDS has resulted in approximately 400 job losses, and the group needs to address employee placement and compensation issues. This decision also has a certain impact on the iGaming industry, showing that even large operators are reevaluating their digital gambling businesses.
Industry observers believe this may prompt other operators to rethink their digital business models.
Future Development Direction
Sands Group has clearly stated that it will focus on the development of physical businesses in Macau and Singapore. Dumont emphasized: "Our dedication to business partners and local communities remains an important part of our brand."
The company commits to "being the most shareholder-beneficial company in the gaming and hotel industry" and expresses optimism about future developments.
