Las Vegas Sands’ closure cuts 400 jobs

The company's decision, confirmed in a letter from President and COO Patrick Dumont, follows an internal review that concluded the digital venture was no longer aligned with LVS’s core long-term objectives, and not due to any cooling down period in the US igaming market.

The news sent LVS’s share price down 7.4% on the day of the announcement, reflecting investor reaction to the closure of a potential future revenue stream.

The question the closure of SDS raises is whether the US online gambling market is in danger of being dominated by a small number of software providers.

What was Sands Digital Service?

SDS was designed as a business-to-business (B2B) operation focused specifically on the live dealer vertical, the fastest-growing segment of the online casino market.

• Core Function: To build state-of-the-art live dealer streaming studios.

• Target Market: Licensed iGaming platforms in U.S. states, including New Jersey, Michigan, Pennsylvania, Connecticut, Delaware, and West Virginia.

• Status: The venture never commercially launched a product or competed with established suppliers.

The digital initiative was a post-sale effort, launched in 2022 after LVS divested its Las Vegas Strip properties, The Venetian and Palazzo, providing liquidity for new ventures, including the acquisition of certain assets from Qbet in 2021.

The people most affected

The job cuts represent a significant blow to the personnel hired to spearhead LVS’s digital transformation. Of the total 300 to 400 jobs eliminated, around 150 were concentrated in Las Vegas.

Job impact breakdown

Total jobs cut	300 to 400
Las Vegas employees affected	Approx. 150

While LVS stated that affected employees may apply for other internal openings, a company representative noted that most of these land-based resort roles require different skill sets. This creates a challenge for tech specialists and live casino staff now seeking similar roles in a competitive market dominated by other major operators like MGM Resorts and Caesars Entertainment, or specialized B2B providers.

What it means for the market and the players

SDS’s closure impacts competing live game developers more than it affects consumers or existing US online casinos.

Due to a mere two-year existence, SDS never actually launched commercially. This means there are no disrupted player accounts or broken operator partnerships.

However, for competitors, the closure removes a well-funded, high-profile potential competitor from the U.S. live dealer space. LVS had the financial power and brand reputation to potentially challenge market leaders like Evolution and Playtech.

Its retreat ensures that the current dominant players in the B2B live casino sector face one less major threat in the near term.

Is the US iGaming market reaching saturation point?

If the failure of SDS provides any insight, it is that the US iGaming market is proving to be a high barrier-to-entry environment.

While the market continues to grow overall, the segment is increasingly dominated by a few established players who have spent billions on customer acquisition and technology over the last decade. These select few companies have no intention to let new competitors in.

This retreat by one of the world's most financially powerful casino groups suggests the U.S. online gambling market has moved past the initial gold rush phase and is already nearing a point of saturation.