News Summary
Wynn Resorts has withdrawn its proposal for a casino license in New York City due to local opposition and rezoning complications. The company will prioritize stock buybacks and existing projects, including a casino in the UAE. Related Companies shifts focus to building housing units in Hudson Yards. This decision highlights the challenges of the casino licensing process in New York, where significant community support is crucial for large-scale developments.
New York City – Wynn Resorts has officially withdrawn its bid for a casino license in New York City, a decision driven by significant local opposition and complications related to the rezoning process, which have rendered the project less appealing. This announcement follows a pattern in which other major casino operators are also re-evaluating their gaming interests within the state.
The partnership between Wynn Resorts and Related Companies was set to create an integrated casino resort in the Hudson Yards neighborhood. However, the current environment has led Wynn Resorts to pivot its focus. Instead of pursuing casino development, the company will channel its resources into stock buybacks and existing projects, including the construction of a casino resort in the United Arab Emirates.
In a similar vein, Related Companies has shifted its priorities from the proposed casino development to the construction of up to 4,000 housing units in the Hudson Yards area. This new comprehensive housing proposal aims to provide mainly rental apartments, alongside at least 400 units designated as below market rate. Additionally, the development plans include the creation of a 6.6-acre park, which would enhance green space access in the highly urbanized region.
The withdrawal from the casino bid comes after considerable community pushback, underscoring the necessity of local support for large-scale developments. Notably, local councilman Erik Bottcher emphasized the critical role of community buy-in for significant projects of this nature, indicating that without it, such initiatives often face insurmountable obstacles.
Wynn Resorts becomes the second major casino operator this spring to pull out of the New York casino licensing process, following Las Vegas Sands’ decision to withdraw its proposal for a site at Nassau Coliseum. Both companies cited the competitive landscape, particularly with increasing pressure from the booming online gaming industry, as a factor in their decision-making process.
Industry stakeholders have expressed concerns regarding the casino licensing process in New York, characterizing it as highly politicized and costly. The lengthy and complex nature of obtaining approval has deterred investment, leading many to question the viability of new casino projects in the state.
As the landscape evolves, MGM Resorts and Resorts World are emerging as frontrunners for two of the three available casino licenses, bolstered by their operational gaming facilities that enhance their staking claims. Other touting bids for New York casino licenses illustrate a competition filled with ambitious proposals:
- Steve Cohen with Hard Rock International is aiming for an $8 billion casino near Citi Field.
- Caesars Entertainment, in collaboration with SL Green and Jay-Z’s Roc Nation, has its sights set on a casino in Times Square.
- Larry Silverstein has proposed a casino complex named Avenir on the Far West Side.
- The Soloviev Group and Mohegan are seeking to develop a project called Freedom Plaza.
- Bally’s has plans for a casino next to the former Trump golf course in The Bronx.
- Thor Equities and Legends Entertainment are advocating for a casino in Coney Island.
As the application deadline looms, all prospective casino bidders must submit their applications by June 27. Community advisory councils will then deliberate and vote on local projects by September 30, further shaping the outcome of this competitive landscape. Ultimately, the New York Gaming Commission is set to review the applications and award up to three casino licenses, each accompanied by a $500 million licensing fee due by December 31, which adds a financial incentive for winning bidders.
Wynn Resorts’ strategic shift away from casino development signals a notable change in focus, with the housing initiative anticipated to meet local demands in a crucial urban area while highlighting the challenges within the competitive gaming landscape of New York.
Deeper Dive: News & Info About This Topic
HERE Resources
Wynn Resorts Withdraws Casino License Bid in New York
Related Companies Shifts Focus from Casino to Residential Development in Hudson Yards
Saks Fifth Avenue Withdraws Casino Plans in NYC
Additional Resources
- CoStar: Wynn Resorts Drops Manhattan Casino Bid
- Wikipedia: Casino
- Yogonet: Silverstein Adds Rush Street to Manhattan Casino Bid
- Google Search: Manhattan casino licensing process
- CNBC: Wynn Resorts Drops NYC Casino License Bid
- Encyclopedia Britannica: Gaming
- New York Times: Wynn Casino Hudson Yards
- Google News: Wynn Resorts New York casino
