Las Vegas Sands is discontinuing its digital venture, Sands Digital Services (SDS), which will result in the elimination of hundreds of jobs.
The casino operator launched SDS in 2023 to stream live dealer games in states where online casinos are legal.
President and COO Patrick Dumont, who will take over as CEO next year, said after review, the company decided to end the online experiment.
Las Vegas Sands has found no joy in the digital space. Image Credit: Frankie Cordoba/Unsplash
In comments to the Las Vegas Review Journal, under the same ownership as Las Vegas Sands, Dumnont stated, “(i)nvestments in SDS were made with the understanding there would be multiple points in the process where we would assess the most pragmatic path forward.”
“Ultimately, we reached a moment in which it was clear to executive leadership and our board of directors that further pursuit of this business was no longer aligned with the company’s core long-term objectives.”
The end of SDS will result in the elimination of 150 local jobs. A Sands representative stated that staff members could apply for openings within the company, but that most openings require a different skill set.
Company Resisted Entering Online Market
Many casino operators have embraced the digital age. For example, MGM partnered with Entain to launch an online betting and gaming company, BetMGM. MGM also branched out into esports with a partnership with Unikrn. However, this venture also came to an end in 2023.
Others, such as Caesars, have launched their own online casino and sportsbook. Las Vegas Sands resisted such a move, warning that digital versions were a risk to brick-and-mortar casinos.
Founder Sheldon Adelson had been opposed to entering the iGaming market, but the company chose to start SDS following his death in 2021. Sheldon’s daughter, Miriam, remains the majority shareholder of her father’s company.
The digital initiative began after the company sold The Venetian and Palazzo on the Las Vegas Strip. This led to the acquisition of assets from iGaming operator Qbet in 2021.
Back To Brick-and-Mortar For Sands
The company stated that it will refocus on its core business operations, aligning with Adelson’s vision. Dupont added, “Our dedication to our business partners and local communities remains an important part of our identity, as does our commitment to being the most shareholder friendly company in the gaming and hospitality industry. As a company, we have much to look forward to in the years to come.”
The company has continued to invest heavily in Asia through its Macau and Singapore properties. Dumont said, “We continually meet and exceed the commitments we have made to our host markets in Macao and Singapore.”
In addition to the continued operation of the Venetian, Las Vegas Sands has committed more resources to its Macao hotel-casinos. Earlier this year, Dumont described Macau as “the greatest gaming market in the world”.
Additionally, Marina Bay Sands in Singapore is expanding to include new hotel rooms and an arena.
Sands also withdrew from the race for a New York casino license earlier this year, citing concerns about the potential legalization of iGaming.