Las Vegas Sands (LVS) has axed its iGaming operations in order to focus fully on its land-based casinos in Macao and Singapore.
According to the Las Vegas Review-Journal, LVS executives made the decision after concluding that Sands Digital Services (SDS) is “not a good strategic fit for the company”.
The Review-Journal is owned by the Adelson family, including Dr Miriam Adelson, majority shareholder of LVS, and Patrick Dumont, President and Chief Operating Officer of LVS.
In a letter to affected employees, who reportedly number more than 300, Dumont said it was clear to the board of directors that further digital pursuit “no longer aligned with the company’s core long-term objectives”.
LVS established its digital operations in 2021 after it purchased assets from Qbet and completed the sale of The Venetian and Palazzo on the Las Vegas Strip to Apollo Global Management and Vici Properties.
The goal was to stream live dealers from a studio offering wagering to licensed iGaming jurisdictions. The strategy was intended to exploit the company’s long-established reputation in the casino sector, but it also put SDS into a highly competitive space that includes established industry powerhouses such as Evolution and Playtech.
In the letter dated 2 October, Dumont said: “The digital landscape continues to evolve, and technology and innovation will continue to play an important role in our industry.
“As a company, we will continue to explore and invest in opportunities that are in the best interests of our shareholders.
“Overall, we remain very fortunate to operate in the two best markets in our industry. Over the past two decades we have set the standard for the investments we have made in our land-based portfolio of properties and the elite level of customer service we have provided our guests.”
The focus for LVS will now be its Asian operations, which include the Venetian Macao and Marina Bay Sands, the latter of which is currently undergoing expansion.
“We continually meet and exceed the commitments we have made to our host markets in Macao and Singapore,” added Dumont.
“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.”
