Las Vegas Sands Online Gaming
Las Vegas Sands (LVS) is exploring opportunities related to online sports betting and iGaming, newly-appointed chairman and CEO of the casino and hospitality group Rob Goldstein told analysts Wednesday.
Online Gaming in the Crosshairs
Jul 12, 2021 Las Vegas Sands CEO Rob Goldstein, pictured in an interview, above. The company is unveiling digital gaming plans. (Image: Bloomberg) The unit will be led by Davis Catlin, who joins the gaming. But let’s find out which of these stocks is a better buy now.Las Vegas Sands Corp. (LVS) and Boyd Gaming Corporation (BYD) are two preeminent casino and resort operators based in the United States. Jul 26, 2014 Las Vegas Sands and its leader's opposition to online gaming may be futile considering that the threats are coming from around the world, evidenced by the issues with www.368.com and the ensuing.
Rob Goldstein, who was appointed as the successor of LVS founder Sheldon Adelson after the long-serving chairman and CEO passed away earlier in the month, outlined online gaming verticals, in both regional and national markets, as presenting a “multiple of opportunities”.
The Las Vegas Sands
“Right now, we are exploring opportunities, looking at what might be out there, but with a caveat to that to say there’s nothing to report today. There’s nothing concrete.”
Rob Goldstein, Chairman and CEO, Las Vegas SandsGoldstein continued by clearly stating LVS has no intention to leave the country, despite some speculations arising from the offer of its Las Vegas Strip properties in a deal around$6 billion.
The admission of interest in the field of online and mobile gaming from the new CEO came after rumors it was about to follow in the footsteps of the other major players in the land-based gaming market, Caesars Entertainment and MGM Resorts, and would target online gaming operators via mergers and acquisitions (M&A).
Money Making Remains Top Priority
The admission also signaled a 180 for the casino and hospitality operator who has a history of opposition to the idea of online gaming, as Sheldon Adelson led efforts of the Restoration of America’s Wire Act campaign, seeking to restore the previous federal prohibition on all types of online gaming.
Contrary to the way Adelson was perceived by the public with regards to digital, Goldstein noted the U-turn was not due to the change at the helm, and that Adelson was too well aware of the potential presented by online gambling and even strongly believed in it.
“He just simply had this outsized ethical concern about people who couldn’t afford it or people that were too young to use it, he wasn’t a believer in the technology that could stop that. He never questioned the viability of it.”
Rob Goldstein, Chairman and CEO, Las Vegas SandsRob Goldstein explained that a discussion with Adelson regarding the potential from online gaming had taken place prior to his passing away, and as every company which is in the business of making money, LVS would consider every opportunity to do so, keeping its focus on growth.
The admission from the chairman and CEO was made following thefourth quarter earnings report in which LVS posted 67.3% decrease in net revenue, to $1.15 billion, with an operating loss for the quarter of $211 million, adding to a 2020 total operating loss of $1.69 billion.
Las Vegas (LVS) Sands might have its eye on expansion into Texas, but it appears to be ready to dedicate a lot more time to its casinos in Asia. The casino operator is expected to come into a serious amount of cash soon and isn’t quite sure what to do with it. According to a recent earnings call, much of it might be spent supporting its operations in Macau and Singapore.
A Shift in Global Gaming
Las Vegas, for decades, was the epicenter of the global gaming space; the destination most gamblers wanted to visit. However, even prior to the COVID-19 pandemic, some believed the city had lost some of its luster and predicted that a shift was coming. According to a report by Casino.org, LVS, which is selling the Venetian and the Sands Expo and Convention Center to Apollo Global Management and VICI Properties for $6.25 billion, might catapult that shift forward, indicating that it could consider boosting its Sands China stake from 69.94% to 75%, the highest allowed under regional policies.
Sands China is just one option the company is considering, but rumors of a greater amount of resources being spent on Asian operations have surfaced before. LVS CFO Patrick Dumont asserted during the earnings call, “So [Asia is] definitely something that we think about and consider over time. I think where we are now – we don’t have the proceeds yet. We’re looking at all the options, and we’re going to consider everything.”
Versatility Key to Future Success
Las Vegas Sands Corporation
LVS has primarily operated in Las Vegas and Macau for years, but is now looking outside Sin City. It is eyeing New York and Texas, with the Lone Star State an untapped resource for the casino industry. The company has already started to spend money campaigning for gambling expansion there, but is open to adapt to wherever the market takes it. What the company hasn’t discussed recently, but did mention earlier this year, is an entry into online gaming. LVS founder and chairman Sheldon Adelson was vehemently opposed to online gaming before his passing this past January, but the new brass seems to be more willing to embrace the idea.
Does Las Vegas Sands Have Online Gaming
Until a clearer picture emerges of what projects LVS has planned, industry analysts are keeping the company at arm’s length. It saw its highest recent stock price on March 15 when it reached $66.20, but it has since fallen, closing at $58.33 yesterday afternoon. That’s still way off from where it was two years ago and a complete freefall from its all-time high of $138.25 from October, 2007.
As a result, analysts are more than a little cautious about what’s next. Steven Wieczynski, the managing director at Stifel Financial Corp, explains, “Our frustration level continues to be high, given LVS’ massive underperformance versus our coverage universe and the broader equity markets as well. We aren’t throwing in the towel and at this point are actually more positive about the setup in the shares moving forward than we probably have been over the last six months.” Wieczynski did give LVS a slight boost, though, listing its stock as a “buy.”