DraftKings, Sands fail to reach casino deal, sources say - Newsday
Online sportsbook DraftKings won’t be taking over Las Vegas Sands’ proposed casino project in Nassau County, after talks failed to result in an agreement, two sources with knowledge of the discussions told Newsday.
"There is no deal with between the companies nor will there be," one of the sources said, requesting anonymity because of the sensitivity of the talks. "DraftKings will not be taking over the Sands bid."
Companies seeking to bid for one of three available casino licenses in New York must submit bids by June 27, making for a fast-approaching deadline for anyone to take over the Nassau project.
Las Vegas Sands was expected to be one of the bidders, proposing a casino and megaresort development project at the Nassau Coliseum site.
But after years of planning, Sands announced April 23 it was quitting the project, citing the economic climate and the threat of online gambling, among other issues.
The same day, a Sands’ official said it was in the "process of securing an agreement with a third party to whom we can transact the opportunity to bid for a casino license on the Nassau Coliseum site." Nassau officials had said an announcement would be made in 30 days.
One source had told Newsday potential partners had discussions with DraftKings about possibly coming together to take over the Sands bid. Sands had paid $241 million for a lease to take control of the site, but it was not clear what kind of financial transaction would be needed for new partners to take over the project.
DraftKings had not responded to inquiries by Newsday.
Now, those talks are over, the two sources said.
On Tuesday at a Hempstead zoning hearing, a Sands representative said talks were still ongoing about a third party taking over the bid. However, Daniel Baker, the attorney representing Sands, added: "The company also recognizes that there is little time left before applications are due to the state on June 27 and it may not be possible."
It wasn’t immediately clear whether there were other potential bidders besides DraftKings, given the short deadline.
Sands is still seeking to rezone the 72-acre site and the adjacent Marriott Hotel property in Uniondale.
"No matter if that development includes a casino or not, putting new zoning in place that moves the site closer to redevelopment is an essential step toward realizing a beneficial project," Michael Levoff, senior vice president at Sands, said in a statement to Newsday on Tuesday.
The field of would-be casino bidders has been changing as the deadline nears.
Besides Sands, Wynn Resorts recently folded its proposal for the Hudson Yards area of Manhattan. Bally’s still doesn’t have the state and New York City legislation it needs to even submit a bid for its proposed casino project at a former Trump Organization golf course in the Bronx.
But bids are still expected from a number of developers, including potential sites at Aqueduct Racetrack, CitiField, Yonkers Raceway, the east side of Manhattan and Times Square. Winning bidders would have to pay the state a minimum $500 million operating fee.
Online sportsbook DraftKings won’t be taking over Las Vegas Sands’ proposed casino project in Nassau County, after talks failed to result in an agreement, two sources with knowledge of the discussions told Newsday.
"There is no deal with between the companies nor will there be," one of the sources said, requesting anonymity because of the sensitivity of the talks. "DraftKings will not be taking over the Sands bid."
Companies seeking to bid for one of three available casino licenses in New York must submit bids by June 27, making for a fast-approaching deadline for anyone to take over the Nassau project.
Las Vegas Sands was expected to be one of the bidders, proposing a casino and megaresort development project at the Nassau Coliseum site.
But after years of planning, Sands announced April 23 it was quitting the project, citing the economic climate and the threat of online gambling, among other issues.
The same day, a Sands’ official said it was in the "process of securing an agreement with a third party to whom we can transact the opportunity to bid for a casino license on the Nassau Coliseum site." Nassau officials had said an announcement would be made in 30 days.
One source had told Newsday potential partners had discussions with DraftKings about possibly coming together to take over the Sands bid. Sands had paid $241 million for a lease to take control of the site, but it was not clear what kind of financial transaction would be needed for new partners to take over the project.
DraftKings had not responded to inquiries by Newsday.
Now, those talks are over, the two sources said.
On Tuesday at a Hempstead zoning hearing, a Sands representative said talks were still ongoing about a third party taking over the bid. However, Daniel Baker, the attorney representing Sands, added: "The company also recognizes that there is little time left before applications are due to the state on June 27 and it may not be possible."
It wasn’t immediately clear whether there were other potential bidders besides DraftKings, given the short deadline.
Sands is still seeking to rezone the 72-acre site and the adjacent Marriott Hotel property in Uniondale.
"No matter if that development includes a casino or not, putting new zoning in place that moves the site closer to redevelopment is an essential step toward realizing a beneficial project," Michael Levoff, senior vice president at Sands, said in a statement to Newsday on Tuesday.
The field of would-be casino bidders has been changing as the deadline nears.
Besides Sands, Wynn Resorts recently folded its proposal for the Hudson Yards area of Manhattan. Bally’s still doesn’t have the state and New York City legislation it needs to even submit a bid for its proposed casino project at a former Trump Organization golf course in the Bronx.
But bids are still expected from a number of developers, including potential sites at Aqueduct Racetrack, CitiField, Yonkers Raceway, the east side of Manhattan and Times Square. Winning bidders would have to pay the state a minimum $500 million operating fee.
