It's "casino or bust" for a lot of the businesses trying to get one of the three downstate gaming licenses that New York will ultimately grant.
In other words, there are no contingency plans, and if the companies competing for those licenses are unsuccessful, it is unlikely that they will accomplish anything noteworthy with the sites they have chosen.
According to a recent report by Kathryn Brenzel of The Real Deal, real estate developer SL Green and Steve Cohen, the owner of the New York Mets, are among the casino applicants from the New York City area who have not yet disclosed their plans in the event that they are not awarded a casino license. Across from Citi Field, Cohen is working with Hard Rock International on the $8 billion Metropolitan Park development, which includes a casino venue. SL Green is collaborating on the Times Square casino hotel concept with Caesars Entertainment and Jay-Z.
Industry executives have made comments implying that New York ventures aren't worth it for them if there aren't any casinos. Hard Rock CEO Jim Allen and Las Vegas Sands CEO Rob Goldstein told CNBC last year that without gaming venues, it would be difficult to earn a sufficient return on investment given the multi-billion dollars needed in New York.
A Few Options for Backup Plans for New York Casinos
There are options available to all of the organizations vying for the three casino licenses. It's probable that Genting's Resorts World New York in Queens and MGM Resorts International's Empire City Casino would remain slot-only establishments if they are unable to obtain conventional casino licenses.
The real estate developer might carry out plans to develop that site, including affordable residential housing, without a gaming venue. Related Cos. is collaborating with Wynn Resorts to possibly add a casino hotel to the Hudson West neighborhood of Hudson Yards.
According to The Real Deal, Cohen and Hard Rock may be pushing another lawmaker to introduce a bill that would relocate the parkland designation off Willets Point, the proposed casino site, as a "plan B" in case State Sen. Jessica Ramos (D-Queens) objects.
Although it's likely that the property might be ideal for residential development, Silverstein Properties hasn't publicly offered alternatives for a planned casino location at 41st Street and 11th Avenue, according to The Real Deal. Similarly, if Thor Equities, which is interested in Coney Island for a gaming site, does not receive one of the three permits, it may decide to sell or develop the property.
Time to Create Backup Plans for the New York Casino
It's been evident in recent weeks that New York regulators are unlikely to reach a definitive judgment regarding the downstate casino licenses before the end of 2025 or possibly the beginning of 2026. To the dismay of business leaders who are dissatisfied with the procedure, operators trying to create alternate strategies may benefit from the longer schedule.
Additionally, it might give developers and operators more time to evaluate the feasibility of their proposals and decide whether to move forward with investments in plans that might not eventually yield returns.
Bally's is an example of a gaming corporation that falls under one or both of those categories, albeit it hasn't stated this as much. The regional casino operator purchased the lease rights to the Trump Golf Links golf course at Ferry Point in the Bronx last year in anticipation of someday constructing a casino hotel there. Bally's needs that property's parkland status to change in order for that bid to have a chance of winning. But as a way to save money, at least one significant investor is urging the operator to abandon its plans for New York.
