NEW YORK – Eight ambitious projects are vying for a limited number of state casino licenses in the bustling New York City market. These proposals promise massive investments, job creation, and billions in tax revenue. However, one prominent bid – a Bally’s casino proposed for a Bronx golf course previously operated by President Donald Trump’s company – hit a major roadblock this week when city lawmakers denied it a crucial zoning approval.
- Eight projects are competing for up to three full casino licenses in New York City.
- The Bally’s Bronx proposal faced local opposition and was denied a key zoning approval.
- Proposals include major developments in Times Square, Coney Island, and near the Mets’ stadium.
- Experts question the realism of revenue projections due to market saturation and online gambling.
- Existing upstate casinos and nearby state gambling hubs present significant competition.
NYC Casino Race Heats Up Amid Local Pushback
The competition for New York City’s coveted casino licenses is intensifying, with each applicant dangling significant economic benefits.
The allure of operating a full-fledged casino in New York City has been a long-held ambition for the gambling industry. A 2013 referendum authorized up to seven new licenses, but upstate venues received an initial advantage. Now, the state’s Gaming Commission aims to award up to three downstate licenses by December.
While applicants tout job creation and community amenities like hotels, shops, and entertainment venues, their promises face scrutiny. Casino experts point to the growing number of casinos in the Northeast and the rise of online gambling as factors that could temper revenue expectations.
What’s at stake? New York City’s casino market is considered unique, with projections for its revenue potential still open to debate.
Times Square Bid Faces Broadway Backlash
The proposed casino in Times Square has become a focal point of debate. The Broadway League, representing the performing arts theaters, opposes the $5.4 billion plan, fearing it will divert patrons from neighborhood businesses and impact a theater industry still recovering from the COVID-19 pandemic. Supporters, however, argue the renovation of a skyscraper housing the Minskoff Theatre, home to “The Lion King,” could actually boost Broadway ticket sales.
This project, backed by developers who have enlisted Roc Nation for entertainment curation, includes promises of $250 million in community projects. These initiatives feature a public safety plan from former NYPD Commissioner Bill Bratton and a civil rights museum that has garnered support from the Rev. Al Sharpton.
Other Proposals Navigate Local Concerns
Manhattan’s other casino proposals, one on the West Side and another on the East Side, may also encounter resistance due to their proximity to residential areas. The West Side project, near the Jacob K. Javits Convention Center and the Lincoln Tunnel, could attract business travelers and convention attendees, according to experts.
In Brooklyn, community groups are rallying against a Coney Island casino proposal. Organizers of the Mermaid Parade are among those concerned that the plan would eliminate iconic boardwalk amusement rides and restrict public access to the beach.
Market Capacity and Competitive Landscape
New York City’s market could potentially support three casinos, provided they are strategically located, suggests John Holden, a business professor specializing in gambling law at Indiana University. He notes that industry revenue projections are often optimistic, and the New York City market is truly unparalleled.
The state might consider awarding licenses to existing, successful racinos – slot parlors associated with horse racing tracks – that have long operated in the New York City area, says Alan Woinski, a gambling consultant. MGM Resorts is proposing a $2.3 billion expansion of the Empire City Casino at Yonkers Raceway, and Resorts World is planning a $5.5 billion investment at the Aqueduct Racetrack in Queens.
These existing facilities could be expanded relatively quickly, allowing the state to begin realizing financial benefits sooner than with entirely new constructions.
Since the 2013 referendum, four full-service casinos have opened in New York, all located upstate. The state also operates nine gambling halls with electronic machines but no live table games. Neighboring states also present competition, with casinos in Connecticut, Atlantic City, and Pennsylvania within driving distance.
