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Wynn Resorts is dropping its plans for a $12 billion casino project in New York City.Top Crypto Casino in Saudi Arabia – BitStarz Ranked #1

The company partnered with Related Companies and Oxford Properties to build a casino resort in the Hudson Yards neighborhood. Wynn cited local opposition and the rezoning process as reasons for the exit.

In 2022, the New York legislature authorized the start of the process to award three downstate casino licenses. The prospect of a New York City casino has gained a lot of interest, even with a much-delayed licensing process and staggering minimum bidding of $1 billion: $500 million for the license and a minimum $500 million capital investment.

The Wynn project was among almost a dozen license hopefuls and among the highest-valued, with a touted $12 billion investment.

License applications are due June 27; the final decision is set for December 1. The licensing process should conclude by the end of the year.

Zoning and Local New York Resistance Cause Wynn to Exit

The Wynn Resorts-Related Companies partnership announced its plans to drop out of the race through a statement on Monday:

“After careful consideration, we have decided not to lodge an application for a gaming license in New York City,” the statement said.

It continued: “The recent rezoning process has made it clear to us that there are uses for our capital more accretive to our shareholders, such as investment in our existing and upcoming developments and stock buybacks, than investing in an area in which we, or any casino operator, will face years of persistent opposition despite our willingness to employ 5,000 New Yorkers.”

When it unveiled its plan, the partnership announced that the project would create 5,000 permanent and 35,000 union construction jobs. 

Wynn’s plans included an 80-story, 1,700-room hotel tower, a casino, 1,500 apartments (including affordable units), a K-8 school, and various other spaces. It also included a 5.6-acre public green space.

However, the Hudson Yard casino resort faced opposition from local organizations, such as Friends of the High Line and Community Board 4. Some lawmakers also opposed the project. New York City Council Member Erik Bottcher publicly said he wouldn’t support it.

After the Wynn withdrawal, Related Companies and Oxford Properties plan to build 4,000 housing units on the site and expand the green space.

Wynn is The Fourth Casino Hopeful to Drop Out

Wynn Resorts is not the first potential applicant to withdraw its bid. Last month, Sands Las Vegas (SLV) gave up on its bid to build a $4 billion casino project at the Nassau Veterans Memorial Coliseum site in Long Island.

Some experts were surprised by the SLV’s move, given that the project had strong political support. However, it faced opposition and legal challenges from community organizations and Hofstra University, which sits next to the site.

SLV’s withdrawal was based on its desire to focus elsewhere and broader concerns about the potential legalization of online casinos in New York. Some experts point out the US-China trade war as another factor, as most of SLV’s business is in China.

In April, Retailer Saks Fifth Avenue announced that it would no longer pursue opening a casino above its flagship store.

Meanwhile, developer Vornado Realty Trust abandoned its casino idea near Madison Square Garden and Penn Station last fall.

Who’s Left?

While the list of hopeful applicants has shrunk, there’s still plenty of interest. Several prominent casino operators, such as Caesars Entertainment, MGM Resorts International, Bally’s Corp., and Hard Rock International, are still fully committed to opening a casino in New York City.

There is a broad consensus that two projects are ahead of the rest: MGM Resorts International’s Empire City Casino in Yonkers and Genting’s Resorts World New York in Queens. Both locations are existing racinos contributing to the local economy and would require fewer resources to convert to full-scale casino operations.

That means several applicants will likely compete for the remaining license:

• Caesars Entertainment and SL Green Realty plan for a Times Square casino, a project backed by rapper Jay-Z.
• Bally’s Corp. casino in Bronx, next to the golf course at Ferry Point, formerly Trump Golf Links.
• A $8 billion casino project near Citi Field in Queens, backed by Mets owner Steve Cohen and Hard Rock International.
• A Coney Island casino by developer Thor Equities and many partners.
• Soloviev Group and Mohegan Gaming and Entertainment’s Freedom Plaza project, located next to the United Nations headquarters.