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"...LVS declared a special dividend,"

Options Clear Corporation (OCC) I believe has the final say on whether "special" dividends should get factored into the option strike price. there is no fixed rule as far as I know such as "if the special divy is >X% of share price". When a special dividend is announced, there should be a notice on the option exchanges website or through the OCC about how the special will be treated.

So in this case, it sounds like it did get adjusted into the option but I don't think it has nothing to do with the regulatory status of the dividend, it has to do with "fairness" as judged by the OCC.

This is my best understanding of the issue, but I rarely transact in options, so apologize if this is not correct.

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