News Summary
Wynn Resorts has officially withdrawn its bid for a New York casino license, citing local opposition and issues with the rezoning process as key factors. The decision is part of a broader reevaluation of Wynn’s investment strategy, as the company aims to focus on other projects and potential stock buybacks. Wynn’s exit follows that of Las Vegas Sands, which raised concerns about the impact of online gaming. As the licensing landscape becomes increasingly competitive, other operators continue to pursue opportunities in New York.
New York – Wynn Resorts has officially withdrawn its bid for a casino license in New York, attributing the decision to significant local opposition and complications arising from the rezoning process. The announcement comes as part of Wynn’s reevaluation of its investment strategy, declaring that there are more advantageous uses for its capital, including injections into existing and upcoming projects, alongside potential stock buybacks.
Wynn had initially partnered with Related Companies to develop a casino resort in the luxurious Hudson Yards neighborhood of Manhattan. However, the company noted that it has been subjected to “years of persistent opposition,” which has diminished the attractiveness of pursuing this particular bid. This decision marks Wynn Resorts as the second major casino operator to withdraw its application within the current spring cycle, with Las Vegas Sands also announcing its exit from competition for a license in New York.
Las Vegas Sands’ withdrawal stems from concerns regarding the potential impact of online gaming developments, which may emerge if the state legalizes iGaming. This shift in legal landscape could redefine the competitive environment and has led Las Vegas Sands to seek third-party options to take over its ambitious project near the Nassau Coliseum, which has already consumed considerable time and financial investment.
Casino executives have openly criticized the licensing process in New York, claiming it is overly politicized, costly, and plagued by delays. As the landscape shifts, MGM Resorts and Resorts World, operated by Genting Group, are seen as likely contenders for two of the three gaming licenses available, given their existing slot operations in the state. Steve Cohen, owner of the New York Mets, has allied with Hard Rock International to propose a casino near Citi Field. Meanwhile, Caesars Entertainment is collaborating with SL Green and Roc Nation for a casino project situated in Times Square.
Wynn’s challenges, particularly in acquiring the Hudson Yards site, sprang from opposition led by local groups, including Friends of the High Line and Community Board 4. As competition escalates, prominent figures like Jay-Z have been actively lobbying New York lawmakers for rival casino proposals, emphasizing the frenzy surrounding this potential gaming expansion in the region.
The skepticism regarding a casino’s feasibility in Manhattan has been echoed by various stakeholders, including the CEO of the Broadway League. This atmosphere of uncertainty persists as other competing bids materialize, including a substantial $8 billion casino project proposed near Citi Field, alongside a $3 billion plan for Coney Island, strategically situated between the iconic Cyclone roller coaster and the historic Wonder Wheel.
Casino applications must be submitted by June 27, with community advisory councils required to vote on these proposals by September 30. The New York State Gaming Commission is set to award up to three gaming licenses, imposing a hefty fee of $500 million for each license due by December 31.
Despite withdrawing from the New York market, Wynn Resorts remains focused on international endeavors. The company is in the process of developing a casino resort in the United Arab Emirates, which will be the first of its kind in the Middle East. The overall sentiment from Wynn indicates that any prospective casino operator in New York will inevitably face similar formidable opposition in the future.
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