Las Vegas Sands shuts down digital division
The closure of Sands Digital Services will see between 300 and 400 people laid off and concludes the project before it could bring a product to market.
Key Points
- Sands Digital Services was set up in 2021 following the passing of Founder, Chairman and CEO, Sheldon Adelson, who was opposed to iGaming
- 300 to 400 people are losing their jobs as a result of the closure, 150 of which are Las Vegas residents
- Sands will continue to invest heavily in its Asian properties
Las Vegas Sand Corp is standing down its short-lived digital arm after an internal review that concluded the project was no longer “aligned with the company’s core long-term objectives.”
The company began to dip its toes in the world of digital gaming in 2021 shortly after its Founder, Chairman and CEO, Sheldon Adelson, passed away – it was then that the now defunct Sands Digital Services was established.
Since then, the division has been planning and constructing a digital offering that would have seen live dealers streaming from studios to states across the USA where such products are legal.
These include New Jersey, Connecticut, Delaware, Michigan, Pennsylvania and West Virginia – now, however, with between 300 and 400 workers having been laid off, these jurisdictions will never see the proposed enterprise go to market.
In total, 150 of those who are losing their jobs are Las Vegas-based and have been informed by the company that they will be able to apply for different openings within the company.
Hopes of re-employment are tempered however with the caveat that most openings will require a different skill set.
Sands President and COO Patrick Dumont composed a letter to all affected employees and senior management. In it he said noted the strategic misalignment of the project and suggested: “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.”
Moving forward, the company will continue to concentrate on its land-based enterprises in Macau and Singapore.
Future movements within the digital sphere have not been ruled out, and Dumont added: “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.”
Good to know: Robert Goldstein replaced the late Sheldon Adelson as Chairman and CEO of Las Vegas Sands when he passed away in January 2021 – in March 2026, Goldstein himself will step away from the top job and transition to a Senior Advisor role
The reluctance of former Chief Executive Adelson to venture into the iGaming arena has perhaps left Sands at a disadvantage when compared to market leaders, who have in many cases been building digital expertise and foundations for over a decade or more.
Sands finally began to invest in the digital arena when it purchased some assets of Qbet in 2021, selling land-based casinos, The Venetian and Palazzo at a similar time.
In Asia, the company has continued to invest heavily in its properties since then and is set to continue to do so, according to Dumont: “We continually meet and exceed the commitments we have made to our host markets in Macao and Singapore. 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.”
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