Las Vegas Sands shut down its digital gaming arm, Sands Digital Services (SDS), resulting in the loss of up to 400 jobs, including about 150 in Las Vegas, according to the Review-Journal.
The project was focused on live dealer gambling products for legal online casino states, including New Jersey, Michigan, and Pennsylvania.
Key Takeaways
- Las Vegas Sands shut down its digital gaming project.
- The online service was meant to focus on live dealer games for iGaming platforms.
- The closure means a loss of up to 150 local jobs, an estimated 400 in total.
In a letter to staff dated Oct. 2, Sands president and COO Patrick Dumont said the decision followed an internal review that found the digital project didn’t align with the company’s long-term goals.
“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,” Dumont said. “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.”
Sands entered the digital space in 2021 following the $6.25-billion sale of its Las Vegas Strip properties, The Venetian and Palazzo, using some of that money to invest in assets for online casino Qbet.
With the closure of the digital unit, Sands is shifting its focus back to its operations in Asia. Officials said their primary growth efforts will now concentrate on Macau, where it operates multiple casinos, and Singapore, where its Marina Bay Sands resort is undergoing major expansion.
Strong earnings in Asia boost company's outlook
Despite the retreat from digital gaming, Las Vegas Sands posted stronger-than-expected financial results during its second quarter, driven mainly by its Asian operations.
Revenue rose 36% to $1.4 billion in Singapore and 2.5% to $1.8 billion in Macau, according to earnings released July 23. Overall, the company reported quarterly revenue of $3.18 billion, with profits hitting 79 cents per share, above the expected 53 cents.
Las Vegas Sands chief executive officer Robert Goldstein said the company remains optimistic about continued growth in both regions, citing the completion of significant capital investment programs.
Vegas Strip continues to face tourism slump
In contrast to Sands’ overseas performance, Las Vegas itself is facing signs of economic slowdown. While Strip gaming revenue grew more than 5% in July and August, analysts point out this was largely driven by unusually high baccarat win rates of 17.5% and 18.5%, respectively.
Tourism is down 8% so far in 2025, along with a 4.5% decline in airline passengers and a 9% drop in revenue per hotel room. Industry observers have pointed to high prices as a factor, but promotional efforts to lure visitors back have not generated much sign of a recovery.
Concerns also extend to the potential collapse of Spirit Airlines, which has filed for bankruptcy and was formerly a major carrier into Las Vegas.
