Insiders claim that Las Vegas Sands Corp may be looking into sports betting, against the previous statements of CEO Sheldon Adelson.
Las Vegas Sands Looking Into Sports Betting
According to insiders, Las Vegas Sands Corp. may be in talks to fully delve into the rapidly growing field of online sports betting. This would mark a major shift in the company’s strategy.
Insiders claim that acting CEO Robert Goldstein may be planning on developing a new betting platform or leveraging the Sands brand in some capacity.
This is an interesting development, given founder and longtime CEO Sheldon Adelson’s perspective on the matter. Mr. Adelson, who is currently on medical leave, has previously opposed online gambling on moral grounds. He has even lobbied against its legalization. According to Mr. Adelson, eGambling makes it too easy for players to lose money.
Sands Corp is one of the largest casino companies in the world, but it has still not adopted a strategy on developing or capitalizing on sports gambling. This makes it the only major US player in such a position.
A Booming Market
The sports betting market has exploded since the US Supreme Court’s 2018 decision to allow all US states to freely implement this new type of gambling if they choose. So far, 19 states offer sports betting in some capacity, while six more have legalized it and are working on the implementation. This year may see even more states embracing sports betting, such as New York, Missouri, Georgia and Florida.
The US sports betting market grew by $1.6 billion last year and is expected to explode to perhaps as much as $10 billion by 2025.
The US is not the only country to recognize the market’s potential. Many jurisdictions across the globe have turned to digital sports betting, in part due to the ongoing pandemic and lockdown measures.
Effects on the Industry
The booming online sports betting market conditions have put the casino industry in a state of frenzy. Companies are actively looking to develop and acquire products, games and platforms to gain a foothold in the market.
According to Chris Grove of Eilers & Krejcik Gaming LLC, there is a real pressure on companies to put themselves in a good position to capitalize on the growing market. He noted that many companies were caught off guard by the incredible growth rate of sports betting.
While sports betting has certainly received the most attention, other forms of online gambling and betting have seen outstanding growth as well. Online gambling in general is widely seen as a good way for casino operators to diversify their offerings. It would also help offset the heavy losses incurred by the lockdown measures.
Sands, like all other casino operators, is still struggling to recover. The lockdown measures have caused a steep decline in attendance that will take some time to get back to pre-pandemic levels. While the measures have loosened up over time, attendance figures at the company’s Macau, Singapore and Las Vegas casinos still remain relatively low.
Mr. Adelson has even proposed selling the Las Vegas resort for $6 billion and reinvesting into new markets.