Las Vegas Sands Wants a Tax Break to Build its Planned Long Island Casino

Article ByDavid Weir

June 1, 2023

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Posted in: New York Gambling News, US Casino News

Las Vegas Sands is looking to spend $4 billion to $6 billion on a casino and resort venue at the Nassau Coliseum site in Uniondale, Long Island, part of Nassau County.

However, reports have emerged this week that it will be looking for tax breaks on construction materials and other costs for the project.

A preliminary lease deal was signed for the site at the beginning of May. Last week, local legislators voted 17-1 in favor of allowing the 99-year lease transfer.

Sands is one of almost a dozen casino operators and other investors racing for one of three upcoming casino licenses in New York state.

Certain Financial Assistance

An anonymous Sands’ insider spoke on the operator’s desired tax breaks to Long Island news outlet Newsday on Wednesday.

“We will seek certain financial assistance from the (lndustrial Development Agency) at the right moment when we are legally able to do so,” the source said. The Nassau County Industrial Development Agency — NCIDA for short — is an organization that promotes sustainable, economic business growth and development strategies.

That NCIDA assistance will come in the form of tax breaks. Sands may ask for a sales tax exemption on construction costs and a mortgage tax reduction, the company insider said.

If they did receive such tax breaks, Sands would make payments in lieu of taxes, or PILOTs, to the county and other tax beneficiaries. That potentially includes the school district and other services. PILOT allows a company to make property tax payments on an agreed schedule instead of paying the standard tax amount.

Investment Leverage

Currently, Nassau County receives zero tax from the Nassau Coliseum Stadium site. They own the property, meaning it remits no property taxes, and the operator has no PILOT agreement set up.

There is also a precedent for Sands’ case here. Many developers of multi-billion-dollar projects leverage the economic boost their plans will give the area in return for money saved on its construction.

Previous owners of the Nassau Coliseum on the planned casino site have used similar tax breaks to save millions during renovations. That included $4.5 million in 2015 and $2.9 million in 2019.

Despite confirming the plans to local news, Sands has yet to start concrete talks with the Nassau County Industrial Development Association (IDA) on any tax breaks.

“We’ve had no discussions with the IDA about this at all,” said the inside source. “However, whatever agreement that we structure with the IDA will certainly be better, as opposed to the present day, where they receive $0.”

Racing Casinos

Sands’ bid is looking one of the healthier bets in the race for a New York casino license at the moment. They now own the lease for their prospective site, and they have consistent local government support.

County Executive Bruce Blakeman is a big fan of the project. The recent almost-unanimous vote in favor of the lease deal demonstrated “our strong commitment to bringing the finest hotel, entertainment center and casino in the world to Nassau County,” he said.

Blakeman is also heavily involved with IDA, who will be looking at any possible tax breaks for Sands’ plan.

However, like most of the other casino plans in New York, the gambling resort venue idea does have its detractors.

Nearby Hofstra University has opposed the plans from the beginning. It is currently taking legal action against the Nassau County Planning Commission. It says rules were broken during the public hearing phases on the planning permission process.

Regardless, Sands looks to continue with its plans for now.

The next step is to complete local approval of the plans through a Community Panel and officials from the Town of Hempstead.

Then, it’s up to state regulators to decide if the project is worthy of one of the licenses. If it does, Nassau County will receive a $900,000 payment from Sands under the terms of the site lease.

Of the three licenses up for grabs, two are widely expected to be given out to the state’s existing, but limited, racetrack casino venues – Resorts World in Queens and Empire City in Yonkers.

Competition is hot for the final license. Sands is up against casino projects by national operators like Wynn and Bally’s, plus billionaire investors like New York Mets owner Mark Cohen and NYC native hip-hop mogul Jay Z.