Las Vegas Sands (NYSE: LVS) continues to express interest in establishing a casino hotel in the New York City area, but the operator recognizes that iGaming may become a possibility in the state, which could pose challenges to physical gaming establishments. 

During a Wednesday conference call aimed at discussing the operator's fourth-quarter results, Sands CEO Robert Goldstein addressed a question from an analyst about New York, where the gaming company plans to construct an integrated resort at the location of Nassau Coliseum in Uniondale. He emphasized the operator's eagerness in New York, while acknowledging that the presence of online casinos cannot be overlooked.

"I think you have to agree with your comment that sometime during the construction phase you could be faced with iGaming competitor which dilutes the value of the product.,” said Goldstein. “So that’s our conundrum and you said it well. The results coming out of neighboring states like New Jersey or Pennsylvania or as far away as Michigan underscore that concern.”

New York is not among the seven states that now permit iGaming, but it is anticipated that the state will review related legislation this year, and it's probably not overlooked by Empire State lawmakers that nearby New Jersey is generating considerable tax income from online casinos. 

“I don’t know why you wouldn’t have iGaming sometime in the future. So that’s our concern as we look at that market,” added Goldstein regarding New York.

Sands Discusses Thailand 

Sands has previously expressed interest in considering a proposal for a casino license in Thailand, where gaming laws are progressing quickly. President and CFO Patrick Dumont described the Southeast Asian country as an “incredible tourism spot.” 

In reply to an inquiry from Barclays analyst Brandt Montour, the LVS executive tackled worries that launching an integrated resort in Thailand could possibly undermine Marina Bay Sands in Singapore. He recognized that although certain tourists travel to both nations and some visiting Singapore might be inclined to explore new gaming options in Thailand, the distinctive positioning of Marina Bay Sands could protect it from competitive risks in Thailand. 

“I think if you look at what we have in Singapore, it’s specifically tied to the highest level of high value tourism,” Dumont said on the call. “It’s rarefied air when you look who’s in that environment and the type of consumption that’s there and the type of both business and leisure tourism that takes place.”

He mentioned that there remains work to be completed in Thailand, but it might be an enticing opportunity for Las Vegas Sands. 

LVS Shares Soar 

In an indication that investors might be recognizing value in Macau casino stocks, LVS shares surged 11.12% today on volume that exceeded the daily average by more than double after the operator revealed its fourth-quarter results. The strength at Marina Bay Sands was largely regarded as the trigger for today's surge in the stock. The operator increasing its quarterly dividend by 25% improved the situation. 

Stifel analyst Steven Wieczynski observed that Sands is currently trading at significantly lower levels compared to historical averages and that there’s a potential route to $60+, suggesting an upside of at least 25% from the closing price today. 

“We believe LVS’ Singapore asset is worth ~$37/share which shows investors are getting the Macau assets for a discounted price, which we view as unrealistic over the long-term,” observed the analyst. “LVS continues to have one of the best balance sheets in the gaming industry. This should allow the company to continue repurchasing their shares or their Hong Kong shares.”