Las Vegas Sands closes igaming project, resulting in 400 lost jobs
Las Vegas Sands Corporation has closed its digital gaming division, Sands Digital Services, in a move that will see the loss of up to 400 jobs, including an estimated 150 in Las Vegas.
Las Vegas Sands entered the digital gaming space in 2021 after the divestiture of its Las Vegas properties and the acquisition of assets from icasino Qbet.
The decision comes after company executives determined that the project, which was designed to offer live dealer games, no longer fit with the company’s long-term strategy.
In a letter to employees, Patrick Dumont, President and Chief Operating Officer of Las Vegas Sands, said, “as has always been the entrepreneurial approach of our company, investments in Sands Digital Services were made with the understanding there would be multiple points in the process where we would assess the most pragmatic path forward.
“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.”
According to reports, the company will refocus on its international operations, particularly in Macao and Singapore, where it continues to invest heavily in expansion and development.
Dumont also emphasized that technology remains important to the company and that it will continue exploring digital opportunities that better align with its goals.
Charlotte Capewell brings her passion for storytelling and expertise in writing, researching, and the gambling industry to every article she writes. Her specialties include the US gambling industry, regulator legislation, igaming, and more.
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The Backstory
Why Las Vegas is rethinking digital bets
U.S. casino operators have spent the past three years testing where online gaming fits beside brick-and-mortar resorts. One of the most aggressive experiments just ended. Las Vegas Sands shuttered its Sands Digital Services unit, cutting as many as 400 jobs and walking away from a live-dealer concept it began pursuing in 2021 after selling its Strip assets and buying icasino Qbet technology. Executives said the initiative no longer aligned with long-term priorities, signaling a pivot back to physical megaresorts in Asia as the company doubles down on Macao and Singapore expansion. The move, outlined in a staff letter from President and Chief Operating Officer Patrick Dumont, underscored the operational and regulatory complexity of building an in-house online product at scale, and it tees up rivals to capture the digital wallet share Sands is leaving behind. Read more about the decision and its implications in Las Vegas Sands closes igaming project, resulting in 400 lost jobs.
Sands’ retrenchment arrives as the broader market splits between operators emphasizing tech-led omnichannel strategies and those leaning into destination resorts and non-gaming amenities. Investors are weighing whether digital gaming remains a high-margin growth engine or a distraction that dilutes focus and capital. The company’s note that “technology remains important” while it seeks opportunities that better fit its goals hints at partnerships or B2B angles rather than a consumer-facing platform. Either way, the decision shifts competitive dynamics in states where online casino remains limited and intensifies pressure on regulators to clarify future expansion paths.
Community partnerships as a license to operate
As policy scrutiny rises, mainstream operators are amplifying responsible-gaming and community benefits. BetMGM offers a window into that playbook. The company became the exclusive sportsbook and casino partner of the Las Vegas Aces through 2027, its first marquee deal with a women’s pro franchise. The arrangement layers branding in the team’s arena and digital channels with VIP experiences for customers, mirroring BetMGM’s league-wide pact with the WNBA.
The tie-up isn’t just marketing. BetMGM and the Aces used the platform to support a local food nonprofit via the “Steals for Meals” campaign. Each home-game steal triggered a $50 donation, culminating in nearly 3,800 meals presented during the Aces’ Sept. 14 playoff opener. The operator spotlighted responsible play through its GameSense integration and other digital tools as it expanded the initiative with The Just One Project. For operators, partnerships that fold in social impact and RG features serve multiple purposes: they build brand affinity, help soften opposition to sports betting and online casino, and demonstrate compliance-forward behavior to regulators weighing new authorizations.
Regulators vs. the offshore shadow market
The legal industry’s expansion has been blunted by a thriving offshore ecosystem that pulls dollars from regulated operators while sidestepping state taxes and consumer protections. Nevada Attorney General Aaron Ford joined a bipartisan coalition urging the U.S. Department of Justice to intensify actions against illegal sites, warning of billions in lost revenue to states and harm to Strip casinos. The push calls for blocking access under the Unlawful Internet Gambling Enforcement Act, seizing domains and servers, and working with banks to stop payments tied to illegal betting. The stakes for Nevada are notable: the state’s chief economist has flagged that Strip metrics lag pre-recession peaks, while travel and convention indicators softened since last summer. The latest salvo and its context are detailed in Nevada officials warn of offshore gambling’s impact on Las Vegas Strip, and in Attorney General Ford’s office statement urging federal action.
Industry groups say the scale of the problem is vast. The American Gaming Association estimates the illegal market siphons tens of billions annually, with roughly 40% of U.S. sports betting still flowing offshore. AGA’s analysis of the untaxed, unregulated segment highlights compliance gaps and consumer risks that legal operators must subsidize through elevated responsible-gaming and AML costs. The group’s market-sizing work, which has become a reference point for lawmakers, is summarized in its report on sizing the illegal gambling market. The policy question for 2025 is whether stepped-up enforcement and payments-blocking will meaningfully redirect bettors into regulated channels or simply push them to new offshore domains, necessitating a more durable federal-state strategy.
Manila’s hard turn and its ripple effects
The offshore question is not just a U.S. problem. In the Philippines, President Ferdinand Marcos Jr. has weighed an igaming ban that could put more than 50,000 jobs at risk across compliance, game development and customer service. Local analysts warn that prohibiting licensed operators would empower illegal sites and erode consumer protections that regulated platforms have built with know-your-customer, age checks and self-exclusion tools. The policy debate, captured in Philippines igaming ban could threaten 50,000 jobs and corroborated by the Philippine Star’s reporting on the employment threat to the sector, which notes over 50,000 jobs at risk if legal online gaming is banned, pits a security-first posture against a regulator-led modernization path.
Even amid policy turbulence, operators are adapting. Bloomberry Resorts plans to launch a nationwide online gaming brand in the second quarter of 2025 to offset revenue lost after action against offshore operators known as POGOs. The platform, now in testing, aims to complement flagship resorts like Solaire and leverage a growing economy. The regulator, PAGCOR, expects the igaming sector to reach PHP450 billion to PHP480 billion next year under a tightened regime. Those dynamics are outlined in Bloomberry to launch online gaming platform to earn back lost revenue. The Philippines debate foreshadows a global pattern: where enforcement clamps down on illegal operators, credible local incumbents are positioning compliant offerings to retain demand onshore.
The stakes for Strip operators and investors
The crosscurrents from Las Vegas to Manila crystallize three risks and one opportunity for investors. First, digital strategy is no longer optional; it is path dependent. Sands’ exit from an internal build suggests that partnerships, B2B tech and selective market entries may offer better risk-adjusted returns than full-stack consumer plays. Second, the regulatory narrative is increasingly binary: jurisdictions that strengthen enforcement against illegal operators while expanding compliant channels will likely see better tax capture and safer consumer outcomes than those adopting blanket bans that push activity underground.
Third, community alignment matters. BetMGM’s Aces partnership, paired with responsible-gaming integrations and local philanthropy, demonstrates how operators are trying to secure social license as they seek incremental approvals. In markets where the political center of gravity is unsettled, tangible community benefits can be decisive.
The opportunity is consolidation of digital share into regulated ecosystems if enforcement accelerates and payment rails tighten for offshore sites. That will reward operators with disciplined customer acquisition, mature RG frameworks and strong brand ties to physical resorts. For the Strip, where visitation and conventions remain below historical peaks, capturing incremental online spend legally linked to loyalty programs could bridge cyclicality—provided Washington and the states follow through on the offshore crackdown now on the table.
