In the high-stakes world of casino development, a buzzworthy partnership between Las Vegas Sands and DraftKings for a Long Island casino venture has officially folded. Despite initial discussions hinting at a possible collaboration on the Nassau Coliseum lease in Uniondale, NY, these talks have come to an unceremonious end. This development marks DraftKings’ exit from the race to spearhead this ambitious project.

The gaming giants entered into negotiations with visions of transforming the Nassau Coliseum area into a thriving casino resort. However, informed sources close to the matter have confirmed that these conversations have ceased, dashing any hopes of DraftKings stepping into Las Vegas Sands’ shoes for this particular endeavor. As one insider candidly put it during an interview with Newsday, “There is no deal between the companies nor will there be,” making it clear that DraftKings is bowing out from taking over Sands’ bid.

Las Vegas Sands recently withdrew from the downstate casino fray, citing concerns over New York’s potential move towards legalizing iGaming as a significant risk factor. The company had been on the lookout for a gaming entity adept in both brick-and-mortar and online operations to assume its obligations in Long Island. Despite this strategic pivot and a looming June 27 deadline for submitting New York City-area casino applications, Sands has yet to secure a suitable successor.

DraftKings’ potential involvement would have certainly raised eyebrows within industry circles. Known primarily for its dominant presence in online sports betting and internet casinos, DraftKings lacks direct experience in managing land-based gaming venues. While its brand graces at least one land-based casino, its primary focus remains on its asset-light, internet-first business model—a strategy that has propelled it to the forefront of digital sportsbook operations in the US.

Based in Boston, DraftKings boasts a strong foothold in New York’s sports betting market and could have been an intriguing choice to fill Las Vegas Sands’ void due to its iGaming prowess. However, as Newsday reports indicate, talks with potential partners about taking over the Nassau Coliseum site have stalled without signs of revival. This halt comes amid revelations from Sands about escalating costs for the Long Island casino hotel project—now estimated at $7.6 billion—further narrowing the field of viable candidates.

Despite these setbacks, Las Vegas Sands remains committed to pursuing necessary zoning changes at Nassau Hub—a crucial step for advancing any new projects on this prime real estate parcel. With time ticking towards the application deadline without a gaming partner secured for Nassau Coliseum’s lease, these zoning efforts gain even greater importance.

As developments unfold and with several original bidders already out of contention—including Saks Fifth Avenue and Wynn Resorts—the landscape of downstate casino contenders is rapidly changing. Bally’s faces its own set of challenges in obtaining parkland alienation permission in the Bronx, adding another layer of complexity as we inch closer to critical deadlines.

This turn of events underscores the unpredictable nature of casino development ventures where alliances form and dissolve against a backdrop of regulatory considerations and financial projections—reminding us once again that in this high-stakes game, not every hand leads to victory.