Digital opportunities
The largest casino company in the United States is the only major player based in the United States that does not have a developed sports betting plan, but that could be changing soon.
Shares of popular online gaming and sports betting apps have skyrocketed since restriction measures brought the gambling industry to a halt in 2020. With the travel and tourism industry facing a recession, prominent integrated resort operator Las Vegas Sands has to reinvent itself.
Las Vegas Sands' new CEO Robert Goldstein has revealed that the operator is exploring some opportunities to expand into online gambling, including expansion into the US land market.
Las Vegas Sands appointed Robert Goldstein as the company's new president and CEO, following the death of Sheldon Adelson in January, who turned the multimillion dollar company. Adelson had long been a force in the United States against online gambling, but now the company appears to be entering a new phase, a new post-Adelson era. There is a new CEO and the company is now considering online gaming opportunities.
Under new leadership, Las Vegas Sands has held discussions with potential partners for a sports betting strategy according to Bloomberg. The plans could require Las Vegas Sands to use one of its own brands, such as Sands, or to partner with an existing sports betting company.
The indirect presence of Las Vegas Sands in the sports betting industry
In 2018, the sports betting and iGaming industry went live in 25 states, after the Supreme Court struck down the Amateur and Professional Sports Protection Act. Currently, Nevada, New Jersey and Pennsylvania account for almost 75% of sports betting. Many sports betting apps such as Fanduel, bet365, HardRock Café, BetMGM, and William Hill are targeting considerable market share.
William Hill, a well-known sports betting operator, has marquee sites at the Venetian and Palazzo properties in Las Vegas Sands. And this is how the company has an indirect presence in the sports betting market through the William Hill marquee site. In addition to Las Vegas Sands, William Hill also has marquee sites at the Cosmopolitan, Palms, Tropicana and Silverton resorts.
Interestingly, the shares of Sands immediate competitors MGM and WYNN are currently trading at pre-Covid levels, driven by the approval of their sports betting apps in various states.With Sands 'possible entry into the sports betting industry and Sands' indirect presence through William Hill's referral sites, the outlook for the future can only be good.
Las Vegas Sands in a global pandemic
COVID-19 sent the casino company to its worst financial performance in a single year, reporting a net loss of $ 1.69 billion in 2020 after its entire portfolio was closed or visits were interrupted for long periods during the year. Total revenue for 2020 declined nearly 74% to $ 3.61 billion after Las Vegas Sands net income in 2019 exceeded $ 13.739 billion.
But Goldstein, gave a note of optimism about the eventual recovery of travel and tourism in the operating markets of Las Vegas Sands in Las Vegas, Macau and Singapore, stating that the company had an unrestricted cash balance of more than $ 2.1 billion at the end of last year. This financial strength supports previously announced capital investment programs in both Macau and Singapore, as well as the search for growth opportunities in new markets, such as the online gaming industry.
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