Understanding Casino Licenses: Why the Freedom Plaza Bid and New York City Projects Were Rejected

The landscape of New York gaming is shifting rapidly, creating a complex environment for those tracking the distribution of new casino licenses. Unfortunately for gamblers and casino enthusiasts, there will not be a casino in Manhattan. The recent decision to reject the Freedom Plaza bid means that just five bids remain for three downstate New York casino licenses, leaving Manhattan’s hopes for a local gaming hub officially dashed.

• Key points:
• There won’t be a casino in Manhattan.
• Freedom Plaza was the last remaining casino bid for Manhattan.
• Only five casino bids remain for three downstate New York licenses.

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The Community Advisory Committee (CAC) for the Freedom Plaza proposal, a staggering $11 billion project intended to create an integrated resort casino near the United Nations Headquarters, voted 4-2 against the proposal. Backed by the Soloviev Group and Mohegan, this marked the third instance of a similar 4-2 vote against a downstate New York casino project, following both Caesars Palace Times Square and The Avenir in Hell’s Kitchen.

According to Michael Hershman, CEO of Soloviev Group, “Freedom Plaza was a transformative project that promised benefits that our community deserved and was built upon a sustained engagement with neighbors, civic leaders and stakeholders across the city that recognized this once-in-a-generation opportunity.”

Community Opposition

Despite claims of local support from the Soloviev Group and Mohegan, the Community Board 6 formally opposed the project, emphasizing their disapproval through a resolution. Although the community board lacked the formal power to halt the bid, CAC members recognized the community’s opposition.

Kyle Athayde, a former Community Board 6 chair, expressed pride in the East Side community for defeating this proposal, stating that it required collective effort. He asserted, “This is not the end, just the beginning. We must work hand in hand with the Soloviev Group to ensure this land does not continue to remain idle but is developed in smart and thoughtful ways to benefit the community.”

Remarkably, the CAC needed a three-fifths majority to forward a bid to the New York Gaming Facility Location Board. Prior to this final vote, the CAC indicated unfavorable ratings towards Freedom Plaza after they rejected an amended bid that proposed including over 1,000 affordable housing units.

No Manhattan Casino

The New York State Gaming Facility Location Board is set to award three downstate casino permits before December 1 but can only grant licenses to projects backed by a CAC.

Among the remaining proposals, two bids are based in Queens (Resorts World New York City, Metropolitan Park), one in the Bronx (Bally’s), another in Westchester County (MGM Empire City in Yonkers), and the last one located in Brooklyn’s Coney Island (The Coney).

MGM’s Empire City and Genting’s Resorts World appear to be strengthening their chances of obtaining full-scale gaming licenses, featuring amenities like Las Vegas-style slot machines, live-dealer table games, and retail sports betting. As for Hard Rock’s proposal in Queens, it seems to be a contender, leaving The Coney and Bally’s in the Bronx with longer odds.

Key Takeaways

• The rejection of the Freedom Plaza bid signifies Manhattan’s absence from the future of downstate New York casinos.
• The ongoing bidding process may pave the way for revitalised opportunities in different boroughs.
• Anticipation rises as selections for the casino licenses draw near, reflecting the evolving landscape of gaming in New York.

In summary, the outcome of the Freedom Plaza bid has opened discussions about the future of casino gaming in the New York metropolitan area, leaving five contenders eyeing the coveted licenses. With community feedback playing a significant role, developers will need to ensure their projects resonate well with local residents to meet the standards set by the advisory committees.