For years, the company proposed and worked toward a $6 billion redevelopment project at the Nassau Coliseum in Uniondale.
In a statement, company officials blamed a series of issues, including the potential legalization of iGaming and its impact on brick and mortar casinos, but said it was working to find a partner to take over the application process.
"We strongly believe in the development opportunity for a land-based downstate casino license in New York. We also continue to believe that the Nassau Coliseum site is the best location for that development opportunity and should be highly competitive in the New York casino licensing process.
Instead, the company says it's looking for a third party to take over the casino licensing application process and keep its vision of a gaming destination in Nassau County alive. They also want them to put forward an alternative development proposal.
The decision caught high-ranking business officials off guard.
"It's about the project and what it brings to Long Island and Nassau County," Nassau Council of Chambers of Commerce Frank Camarano said. "It's a winner. So hopefully it continues and I'm sure it will."
Nassau County Executive Bruce Blakeman, who has been a longtime supporter of the project as a way to infuse the region with new jobs and economic opportunity, said there is strong interest from other gaming organizations to take Sands' place.
"There is one in particular that we've talked to that has a very tantalizing offer," he said.
He promised the area would be redeveloped with or without a casino.
The project had drawn strong reactions from the community on both sides of the issue. Many shared concerns about traffic, noise and the impact on the environment.
"It will bring a lot of negative activity in this area," Uniondale resident Joe Torres said. "It's going to cause just lots of traffic with a lot of people who aren't from around here, so it's probably a better idea to keep the casino out of the area."
"A lot of the stuff that comes here, none of the money ever trickles into the community or the schools," Uniondale resident Steve Muir said.
Others supported the potential economic boom the project could have brought to Long Island.
"The stadium was good, but you know, the casino would be much better," Uniondale Jose Garcia. "I think it's a good idea for everybody."
A full gaming license allows casinos to offer in-person table games in addition to video slots and other digital games.
The deadline to apply for a license is June 27, with decisions expected to be made by the end of this year.