Discussions between DraftKings and Las Vegas Sands regarding a possible takeover of Sands’ planned casino development in Nassau County have ended without a deal, according to two sources familiar with the matter. Despite earlier conversations exploring a partnership, DraftKings will not proceed with an effort to acquire Sands’ bid for one of three available downstate New York casino licenses.

Sands exits, DraftKings declines opportunity:

“There is no deal between the companies nor will there be,” one source confirmed, requesting anonymity due to the confidential nature of the negotiations. “DraftKings will not be taking over the Sands bid.”

Las Vegas Sands had been a key contender in the race to develop a casino at the Nassau Coliseum site, investing $241 million to lease the 72-acre property. However, the company unexpectedly announced on April 23 that it was withdrawing from the project. Citing economic uncertainty and the looming potential of legalized online gambling in New York, Sands decided to step away from its bid but indicated it was negotiating with a third party to take over its plans.

At the time, a Sands representative stated, “We are 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 County officials had anticipated an announcement within 30 days.

Sources told Newsday that DraftKings had been in conversations with possible partners, potentially other gaming firms, about forming a group to pursue the Sands bid. Yet, those talks ultimately failed to produce an agreement, and DraftKings has not issued any public comment. Sands, too, declined to provide additional statements on the matter, while representatives from the Nassau County Executive’s office did not respond to inquiries.

Had it taken over the bid, DraftKings would have represented an unconventional choice. While the Boston-based operator is licensed for online sports betting in New York and holds a strong market share in the state, it is not traditionally involved in managing brick-and-mortar casinos. Its business model is primarily internet-based and asset-light, focusing on digital platforms rather than physical casino operations.

Although one land-based casino bears the DraftKings name, the company does not oversee its daily functions. That lack of direct experience in resort management made its potential role in a $7.6 billion integrated resort development—a revised estimate from Sands’ final environmental impact study—somewhat surprising.

With the June 27 deadline looming for downstate casino applications, it remains uncertain whether any other party will step in to salvage the Nassau bid.

Zoning efforts continue despite uncertainty:

Even as the search for a replacement operator appears stalled, Las Vegas Sands continues its efforts to rezone the Nassau Coliseum site and the adjacent Marriott Hotel property in Uniondale. The company sees this process as critical to future redevelopment, whether or not a casino ultimately materializes.

Speaking at a Hempstead zoning meeting on Tuesday, May 27, Daniel Baker, legal counsel for Sands, acknowledged that time was short: “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.”

Michael Levoff, senior vice president at Sands, emphasized the broader value of rezoning in a statement: “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.”

As the application deadline nears, the landscape of contenders is narrowing. Besides Sands’ exit, Wynn Resorts recently dropped its Hudson Yards proposal, and Saks Fifth Avenue is also no longer in the running. Bally’s remains in limbo as it waits for legislative approval needed to pursue its Bronx-based plan.

Still expected to submit bids are developers eyeing sites at Aqueduct Racetrack, Yonkers Raceway, Citi Field, Times Square, Manhattan’s East Side, and Coney Island. Each winning bid will require a minimum $500 million payment to the state, intensifying the competition and pressure on applicants.

With DraftKings officially out and no successor yet named, Sands’ Long Island project could soon join the list of abandoned bids unless another party steps forward in time.