Las Vegas Sands has finally decided to venture into digital gaming, and it’s set to create a new investment arm to achieve that goal.
According to available information, Davis Catlin will lead the new division.
Catlin joined the casino operator from Sands Capital Management, the Virginia-based business with no relation to the gaming giant. The investment company is one of the global business leaders, with $77 billion in assets under its management.
Catlin spent the last decade at Sands Capital Management, overseeing the firm’s investments in the digital segment.
Commenting on this important milestone, Rob Goldstein, CEO at Las Vegas Sands, said the operator wanted to seize the opportunity to invest in the new digital gaming technologies and other related offerings.
The renowned Las Vegas operator plans to position itself as a strategic investor in the business-to-business (B2B) side of the digital industry.
A Long-Awaited Move
So far, Las Vegas Sands kept itself out of the online casino and sports betting frenzy, which has taken over the US. The operator’s leading figure, until his passing in January this year, was Sheldon Adelson. The former Chairman and CEO helped Las Vegas Sands transform into the largest publicly traded gaming company in the world. He achieved that by focusing on the land-based vertical and through the MICE (meetings, incentives, convention, and exhibition) resort concept.
Las Vegas Sands barely touched sports betting, while Adelson was a strong opponent of online casinos. He believed internet gambling could increase addiction and lead to massive losses for players.
However, the operator’s rival didn’t share his views and embraced online gaming and sports betting. With a market rising to $42 billion in North America, the idea of venturing into this unexplored space was more and more appealing. At this moment, we don’t know on which specific regions will Las Vegas Sands focus its digital operation.
With more than $2 billion in cash available at the end of the year’s first quarter, and $6.25 billion coming from selling its assets in Las Vegas, the company has everything it takes to become a significant player in the market. As the Las Vegas Sands executive Goldman pointed out, it will take a pragmatic approach.
He said they were going to be patient and invest for the long-term, as digital gaming would surely deliver significant returns for the operator.
Lots of Opportunities for Las Vegas Sands
We don’t know what kind of online investment is the company planning. According to analysts, the recent consolidation in online gaming and online sports betting allows Las Vegas Sands to choose between plenty of options, especially as the operator is a well-heeled suitor.
Earlier this year, rumors appeared that Las Vegas Sands was eyeing a deal with 888 Holdings, but there was no information about it following the initial report.
But that’s not quite the deal for Sands, especially if it’s looking to focus on B2B opportunities. At this moment, we’re keeping an eye on the renowned operator, as we’re sure a big move is heading our way.