Casino Proposals in New York City
A Caesars Palace casino in Times Square, a sprawling gaming hall on Coney Island’s famous boardwalk, and a Hard Rock casino complex adjacent to the New York Mets’ stadium are among the eight projects vying for up to three state licenses to operate in New York City’s promising casino market. Each proposal holds the potential for significant investment in America’s largest urban area.
Bally’s Casino Faces Challenges
However, one project—a Bally’s casino proposed on a Bronx golf course previously operated by Donald Trump’s company—may have hit a roadblock after city officials denied it essential approval in mid-July. Each of the casino proposals includes commitments to create thousands of jobs, enhance community amenities with hotels, restaurants, and entertainment venues, and generate billions in annual taxable gaming revenue for the state.
Assessing Promises and Competition
Despite these promises, the realism of their financial projections remains uncertain, especially due to the rise of casinos in the Northeast and the growth of online gambling. Sam Chandan, a professor at NYU’s Stern School of Business, questions whether three full-scale casinos can achieve their ambitious revenue goals without competing against one another.
Community Opinions Shape Licensing
The push for full-scale casino resorts in New York City has been developing for years. Following a 2013 referendum, which allowed up to seven full casinos with live table games, the state initially prioritized upstate venues. The state’s Gaming Commission aims to award up to three downstate licenses by December, but community advisory committees will first review public sentiments about each proposal.
Local Opposition and Protests
Most casino projects are facing local resistance. For instance, on July 14, the NYC Council denied Bally’s a necessary rezoning amendment due to environmental concerns surrounding its US$4 billion proposal. The plan also includes a 500-room hotel and a 2,000-seat event center, raising alarms among local residents.
Broadway Community Concern
The proposed casino in Times Square has stirred significant debate. Opponents, including the Broadway League, argue that the US$5.4 billion project would divert customers from local businesses and harm the theater industry, which is still recovering from the COVID-19 pandemic. Supporters assert the plan could increase demand for Broadway shows and feature contributions like US$250 million for community projects, including a public safety initiative and a civil rights museum endorsed by Rev. Al Sharpton.
Market Viability and Alternatives
Despite existing competition, experts believe New York City could accommodate three casinos, contingent upon their locations. Two upcoming projects in Manhattan may face challenges due to their closeness to residential areas. Still, there are strategies to balance competition by awarding licenses to established venues like racinos, which have successfully operated in the region. Notably, MGM Resorts and Genting are proposing significant expansions of existing facilities, potentially allowing the state to see financial benefits sooner.
