A new concern has emerged regarding the potential plan to build a downstate casino on Long Island, New York.
Surprisingly, this apprehension is not from local residents, politicians or community watch dogs, but from Rob Goldstein, the chairman and CEO of the casino operator, Las Vegas Sands, that's proposing the project.
During a third-quarter earnings call, as reported by CDC Gaming, Goldstein expressed his unease about investing $6 billion in a Long Island casino-resort due to the competition posed by online gambling.
“We remain interested in the process,” Goldstein said. “The only concern I have these days is the ongoing strength of online gambling. You can’t ignore what’s happening in New Jersey, Pennsylvania and Michigan. This is the newest wrinkle. My personal thinking has been influenced somewhat by the last six months of the growth of online gambling.”
Online Gaming Booming in The United States
While Nevada has internet poker, only seven U.S. states currently offer a full slate of legal online casino games:
- Connecticut
- Delaware
- Michigan
- New Jersey
- Pennsylvania
- Rhode Island
- West Virginia
The U.S. online gambling market is undergoing significant growth, with forecasts indicating a substantial expansion from approximately $5.1 billion in 2024 to nearly $11 billion by 2029, representing an annual growth rate of almost 17%.
According to Statista, by 2027 the number of users in the online gaming market in the United States is expected to amount to almost 79 million users. Additionally, in the second quarter of 2024, commercial gaming in North America achieved significant growth, reaching nearly $18 billion. This increase marked the 14th consecutive quarter of annual revenue growth for the industry.
Casino is One Part of Sands' New York Plan
The $6 billion plan for the Sands New York is to build more than just a casino. Some are calling it an “entertainment experience” that will include:
- Hotels
- Ballrooms
- Conference spaces
- Live entertainment venues
- Health club spas
- Restaurants
The casino-resort would be built on what is called the Nassau hub. This area comprises more than 70 acres of land surrounding the Nassau Coliseum, which is currently used for sporting events, concerts, large exhibitions and trade shows.
Las Vegas Sands is among 11 downstate bidders vying for three licenses in the area. Casino operators who want a license must submit their applications in the spring. Goldstein said that the decision to award them might be delayed until the first quarter of 2026 instead of by the end of 2025.
Online Gambling Not the Only Concern
Although the threat of online gambling appears to be a valid concern, it’s not the only one.
Hofstra University, Kellenberg High School and the Village of Garden City strongly oppose the plan to build the casino. Representatives are worried that it will lead to more crime, gambling addiction, traffic and environmental issues.
It would essentially be built in the middle of two colleges, Hofstra and Nassau Community College, although the latter supports the plan. NCC leaders are intrigued by the casino project for its potential to bring thousands of jobs and millions of dollars in revenue to the county.
Long Island Casino Has Long Way to Go
The journey toward the realization of building a Long Island casino remains challenging.
The application process is lengthy and demanding, with operators like Bally’s, MGM Resorts, Hard Rock and Mohegan all submitting proposals for sites that include Manhattan and the Bronx.
A mandatory environmental review, as stipulated by the State Environmental Quality Review Act, still awaits completion and is projected to take six to eight months. In addition, land use permits, zoning requirements and all entitlement processes must be thoroughly addressed.
Each successful applicant that passes the vetting process will need to pay a $500 million licensing fee to progress toward launching downstate.
