Las Vegas Sands shuts digital gaming unit, cutting up to 400 jobs

Las Vegas Sands Corp has closed its digital gaming division, ending a three-year effort to enter the U.S. iGaming market and cutting 300 to 400 jobs, including about 150 in Las Vegas.

The company said the move to wind down Sands Digital Services (SDS) followed a strategic review that concluded the project no longer fit its long-term plans.

“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,” President and Chief Operating Officer Patrick Dumont said in a letter to staff, as reported by the Las Vegas Review-Journal.

SDS was formed in March 2022 to develop live dealer streaming for online casinos in states where internet gambling is legal, including New Jersey, Michigan, Pennsylvania, Connecticut, Delaware and West Virginia. The venture never launched commercially or competed with established suppliers such as Evolution, Playtech and Stakelogic.

Dumont said the company entered the project with built-in decision points. “As has always been the entrepreneurial approach of our company, investments in SDS were made with the understanding there would be multiple points in the process where we would assess the most pragmatic path forward,” he said.

The closure comes after Sands acquired assets of Qbet in 2021 and began exploring online ventures following the death of long-time CEO and online gambling opponent Sheldon Adelson.

A company representative said affected employees could apply for other roles, though most internal openings require different skill sets.

Las Vegas Sands said it will focus on expanding its land-based operations in Macao and Singapore, where it runs The Venetian Macao and Marina Bay Sands among other properties.

“The digital landscape continues to evolve, and technology and innovation will continue to play an important role in our industry,” Dumont said. “As a company, we will continue to explore and invest in opportunities that are in the best interests of our shareholders.”

He added that the company remains anchored in its Asian markets. “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.”

Sands is investing in an expansion of Marina Bay Sands in Singapore and has committed additional capital in Macao under updated gaming concessions.

“We continually meet and exceed the commitments we have made to our host markets in Macao and Singapore,” Dumont said. “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.”