Sands puts New York casino cost at $6 billion, reiterates Texas interest
Las Vegas Sands (NYSE: LVS ) said it could cost $6 billion to build the Nassau County venue if it wins a New York casino license.
The largest gaming company by market value also reiterated its interest in Texas. Executives commented on the impact during the carrier's fourth-quarter earnings call late Wednesday. LVS shares edged higher on Thursday on strong performance in the company's Macau and Singapore operations, but the focus was on the operator's efforts to re-enter the U.S. market.
As you know, we are applying for a license in New York. We have great local support. The cost of the building is approximately $6 billion and allows us to develop a true five-star resort," CEO Rob Goldstein said on the conference call. "This is a tremendous opportunity. We are very excited about this prospect. Our offer is very convincing. If we get permission, we will be on site as quickly as possible. "
Sands is one of nearly a dozen companies vying for three in-state casino licenses that New York regulators may award later this year. LVS wants to build a casino-hotel on the site of the former Nassau Coliseum in Uniondale, a proposal opposed by Hofstra University and some local groups.
Although a court recently ruled that Nassau County's transfer of the arena's lease to Sands violated New York's open meetings law, the operator is still seeking one of those permits. Goldstein added that the state may decide on the winning bidder this year, but noted, "We don't quite know if that's going to happen."
Sands Talks Texas
Miriam Adelson, the widow of Dr. Sheldon Adelson, and the family of LVS Chief Financial Officer Patrick Dumont have further speculated that the carrier is moving Dallas is viewed as the site of a potential casino resort.
Adding to the suspicion, reports confirm that a limited liability company (LLC) owned by Las Vegas Sands purchased land near Texas Stadium in Irving, Texas, last July. During the conference call, the operator reiterated its optimism for the second-largest country.
“As far as Texas is concerned, I think the biggest thing is that Las Vegas Sands is actively trying to promote the development of integrated resorts in Texas through gaming liberalization,” Dumont said. "That's why we're very excited about this. We think this is an incredible market. We hope that over time it will happen. I can't tell you exactly when, but as a company we are very focused on this At one point, we're excited about the opportunity to develop some very unique tourism assets, especially in Dallas."
Dumont is now the Mavericks' governor, while current minority owner Mark Cuban is in charge of basketball operations.
Analysts optimistic about Sands Group’s business in Asia
Currently, Sands' entire portfolio includes five integrated resorts in Macau and Marina Bay Sands in Singapore. Analysts are bullish on Macau, where Sands China is the largest operator.
"LVS' market-leading housekeeping will benefit from the later stages of the post-pandemic recovery and overall market growth," CBRE analyst John DeCree said in a note to clients Thursday.
Macquarie analyst Chad Beynon reiterated that Sands is one of the best Macau stocks to own. He did so while praising Marina Bay Sands' earnings.
“LVS remains the top choice in Macau due to its strong management team, return on capital, leadership in mass business and unparalleled capacity (rooms, table games, non-gaming). “Additionally, Singapore remains an incredible strength and revenue streams," he wrote in a report.
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Source: www.casino.org
