A casino at Saks, Times Square or the UN? Companies pitch NYC officials

Real-estate and casino developers are pitching several sites in midtown Manhattan, including on the top floors of the Saks Fifth Avenue across from Rockefeller Center and in the very heart of Times Square. It’s vital to be near the city center to draw the right mix of tourists and wealthy clients, they said.

For years, New Yorkers have had to leave the city limits to gamble at full-fledged casinos in Atlantic City or rural Connecticut. Four casinos in upstate New York have opened since 2014. Now, state gambling regulators are conducting a competitive bid process for three downstate licenses. Industry players expect two will go to video-slot parlors that already operate in Yonkers and another near John F. Kennedy International Airport in Queens—essentially leaving only one up for grabs.

“New York City, for a whole host of obvious reasons, is the single-most important, unclaimed prize in gaming," said Michael Pollock, managing director of Spectrum Gaming Group, a gambling research firm that issued a report on the New York market for state leaders. “Because of its New York City brand, because of its population, its disposable income, its existing tourism infrastructure."

Three downstate casinos combined could generate as much as $4.4 billion in gross gambling revenue, according to Spectrum’s report.

Officials haven’t set a deadline for applications, the exact requirements of which were announced on Jan. 3. Bidders must commit to investing at least $500 million and paying a one-time $500 million fee.

Before any proposals are considered by the state’s Gaming Facility Location Board, an applicant must secure two-thirds support from a Community Advisory Committee, made up of representatives of Gov. Kathy Hochul, the state lawmakers who represent a site, and in New York City, the mayor, borough president and local City Council member.

State and local officials who represent midtown Manhattan have been openly skeptical about casinos, though they haven’t shut the door entirely. Construction of housing is a more pressing concern in a part of the city where the median monthly rent now exceeds $4,000.

“There’s going to be an uphill road for any site in Manhattan," said Manhattan Borough President Mark Levine, a Democrat.

Mayor Eric Adams has said he hopes two of the new casinos will be placed in the five boroughs given the economic benefits to the city, but he hasn’t supported a specific site. Ms. Hochul hasn’t commented on specific plans but has said casinos would create jobs.

According to a Siena College Research Institute poll released Monday, support for and opposition to Manhattan casinos were tied at 38%.

Casinos could help revitalize parts of the borough, proponents say. The island has grappled with low office-occupancy rates and decreased foot traffic since the start of the pandemic.

Across the city, tourists have returned faster than office workers. The city experienced a 70% increase in visitors last year compared with 2021, according to NYC & Company, the city’s tourism marketing arm.

Mr. Levine said he’s heard pitches from four developers. In addition to privately briefing officials, some operators have also talked publicly about their plans and begun to enlist support from local residents and businesses.

In some instances, the jockeying has pitted business communities against each other.

Caesars Entertainment Inc. and office landlord SL Green Realty Corp. have proposed converting a Times Square office tower into a hotel and casino. It would cater to Midtown office workers and tourists who already come to the area, said Brett Herschenfeld, an SL Green executive vice president.

“In order for Times Square to remain relevant for 10, 20, 30 years down the road, it’s not Broadway that’s going to be the sole source of entertainment that will carry Times Square," Mr. Herschenfeld said.

The Broadway League, which represents theater owners, issued a statement saying a casino “would bring deep economic and social disruption" to the area. Owners of some major Times Square restaurants support the proposed casino, and the Times Square Alliance, a business-backed organization that promotes the area, said it was choosing not to take sides.

A few blocks east of Times Square, Saks hopes to convert the top four floors of its flagship store near Rockefeller Center into a “a luxury, high-end casino," akin to what a gambler might find in Monte Carlo, Mr. Levine said. A spokeswoman for Saks parent Hudson’s Bay Co. said its facility could open faster than others because it is retrofitting existing real estate.

Soloviev Group, a property developer, has unveiled renderings for a casino just south of the United Nations headquarters along the East River at the 6.5-acre site of a former power plant.

The developer is proposing a casino capped by green space and a Ferris wheel, according to a pitch deck provided by the company.

Neither Saks nor Soloviev have announced partnerships with established gambling operators, but representatives of each developer said they are in talks. Wynn Resorts Ltd., which operates casinos in Las Vegas and Macau, has partnered with Related Cos., a real-estate developer, on a proposal for a facility in the next phase of Related’s Hudson Yards development.

Vornado Realty Trust, which has plans to develop sites around the Pennsylvania Station rail hub, is studying the possibility of applying for a casino license in the area, a spokesman said.

Three other groups are considering casinos outside Manhattan. Las Vegas Sands Corp. has put forward a plan for a new facility on Long Island adjacent to the Nassau Coliseum. Thor Equities, another real-estate developer, is pitching a casino for Coney Island.

New York Mets owner Steve Cohen has held talks with gambling companies about including a casino in a redevelopment of the parking lots surrounding the baseball team’s stadium in Flushing.

Brian O’Dwyer, chair of the New York State Gaming Commission overseeing the bidding and selection process, told the three members of the Gaming Facility Location Board—which will evaluate and recommend projects—that their ultimate decision would be controversial no matter what they do.

“Few people will be pleased," Mr. O’Dwyer said.

This story has been published from a wire agency feed without modifications to the text