The Las Vegas Sands has decided to seek a new company to lead its proposed casino complex at the Nassau Coliseum for one of New York’s three downstate casino licenses. However, it won’t be Boston-based DraftKings after they walked away from the opportunity.
Looking for a Partner
Las Vegas Sands has sent a search party on the lookout for a company to take over its casino project, and DraftKings, one of the preeminent mobile sportsbooks in the United States, expressed interest but ultimately decided the juice was not worth the squeeze.
“There is no deal between the companies, nor will there be,” said an anonymous source close to the negotiations. “DraftKings will not be taking over the Sands bid.”
Sands had initially reported the cost of the project would run $4 billion, but a more recent and accurate cost analysis reveals the total investment would be closer to $7.6 billion. The Sands has already sunk $241 million for control of the lease, and what it will ultimately be is anyone’s guess.
However, a recent Hempstead Town Board meeting turned raucous as local residents decried the failure of the town to be transparent about the negotiations and the adverse effects it would have on the community should it become one of the three gambling hubs in New York City.
“I stand before you on behalf of the vast majority of residents who are viscerally against casino development at the coliseum grounds,” said Garden City Mayor Edward Finneran. “We are against changing the character of our community,” the mayor added.
However, hope springs eternal in the minds of the Sands, as Daniel Baker, an attorney representing the company, said at last week’s zoning board hearing, “These discussions are still ongoing, and the company is hopeful that a deal can still be reached.”
Time Is Running Out
Time is running out for the proposed casino and megaresort complex at the Nassau Coliseum, the former home of the NHL’s New York Islanders. A June 27th deadline to have all applications due for consideration for the coveted licenses is looming, and time is running out quickly for a lead company to assume the mantle set in motion by the Las Vegas Sands.
A white knight to save the day is nowhere in sight for the Sands, so the company is beginning to shift gears as to how to maximize the Coliseum and what they could do to generate money.
“No matter if that development includes a casino or not, putting new zoning in place that moves the site closer to redevelopment is an essential step toward realizing a beneficial project,” Michael Levoff, senior vice president at Sands, said in a statement.
Despite the setback, Sands continues to pursue rezoning the 72-acre site and the adjacent Marriott Hotel property in Uniondale.
The writing has been on the wall as far back as October, when the Sands CEO Robert Goldstein stated during a third-quarter earnings call, “I’ve always been the biggest advocate for New York and other jurisdictions. The only concern I have these days is the ongoing strength of online gambling. We can’t ignore what’s happening in New Jersey, in Pennsylvania, and in Michigan.”
