New York City To Construct More Casinos, Including One On Times Square

• Daniel Horvat
• December 4, 2023

New York City will allow new zones for casino construction and is looking for potential investors to add to the 12 casinos already in business. Caesars Palace Times Square could bring gambling to the heart of the city if the bid wins one of three available licenses.

The city that never sleeps is about to get a little more exciting. New York City Mayor Eric Adams (pictured) recently announced potential new zones for land-based casino construction, a move that could significantly reshape the city’s entertainment landscape.

The amendment proposed by the Mayor includes eight particular districts across all five boroughs. This strategic move aims to ‘level the playing field’ for competing casino bids, opening up more opportunities for potential gaming venues in the city.

Among the interested parties is the SL Green Realty Corp., the city’s largest commercial landlord, and Caesars Entertainment. They have proposed to convert a 54-story office tower at 1515 Broadway into a hotel, casino, and entertainment complex named Caesars Palace Times Square. Caesars and SL Green are joined by Roc Nation, the entertainment agency founded by Jay-Z. The plan includes an 800-room hotel and 250,000 square feet of gaming space. Caesars Palace Times Square would occupy the lower eight floors of the building, with the hotel poised above it.

The partners have promised that the development would “accelerate economic recovery for surrounding businesses” in Times Square, as well as “create good-paying union jobs for New Yorkers.” They also stated that the project would be a renovation instead of new construction, which means the opening can happen quicker than other proposed facilities, and without changes to the law or disruption to local communities.

In addition to the New York casino and hotel, the project also includes a Broadway theater that will be home to “The Lion King” and other entertainment attractions. This is a unique feature that sets it apart from other casino proposals and aligns with the vibrant entertainment scene of Times Square.

This project represents a significant investment in the future of New York City’s entertainment industry. If successful, it could become a major landmark in Times Square and a key player in the city’s gambling industry.

As of now, New York boasts 12 land-based casinos and racinos, overseen by the New York State Gaming Commission, and 15 tribal casinos not regulated by the state. The NY casino market ranks in the top five in the United States, generating over two billion dollars in gross revenue in 2017 and a total tax revenue of 1.02 billion for the state.

Resorts World Casino is the only casino located within the boundaries of the five boroughs of New York City. It is located in Queens and it features over 6,000 slot machines.

The process to license three new Las Vegas-style casinos in the New York City area is underway. A year after the state of New York authorized up to three downstate licenses to go along with the four casinos already built upstate, the seven bids continue to work their way meticulously through a process that doesn’t figure to end until the end of 2023 at the earliest.

In January, the state’s Gaming Facility Location Board announced a request for applications for the three new licenses. Qualifying bids must include at least $500 million in capital investment on top of a license fee of at least an additional $500 million.

The initial casino licenses will run from 10 years to 30 years based on the investment of the winning bidder, and revenue to the state weighs heavily in the rating of the bidder’s proposals.

As for who these licenses will go to, it’s still uncertain. The process is competitive and involves a thorough review of each applicant’s proposal. Factors such as economic impacts, job creation, anticipated revenue, and a commitment to work with minority and women-owned contractors will be weighed.

While Caesars Palace Times Square is one of the contenders, there are also other groups that have proposed building casinos at several other sites, including Hudson Yards and Times Square in Manhattan, Willets Point in Queens, and Brooklyn’s Coney Island. Two existing “racinos,” Resorts World Casino in Queens and the Empire City Casino in Westchester County, are considered frontrunners in the competition.

It’s important to note that the final decision on the awarding of casino licenses is subject to a community review process, and there’s no set deadline for when a decision will be made. But insiders expect the awards to be made by year’s end.

This move by the Mayor is a game-changer, literally and figuratively. It’s a high-stakes gamble that could pay off in spades for the city, bringing in new revenue, creating jobs, and adding a new dimension to the city’s already vibrant entertainment scene. Only time will tell how this bold move will play out, but one thing is certain – the future of gaming in New York City just got a whole lot more interesting.

The announcement by the Mayor of New York City regarding the potential new zones for land-based casino construction has certainly stirred up a lot of conversation. While industry experts see it as an opportunity for growth and economic recovery, local community boards and associations have expressed concerns about the impact on their neighborhoods and existing plans for development.

Industry experts who spoke to City & State believe two of the licenses will likely go to the existing casinos at nearby racetracks. That would leave one golden ticket up for grabs – and it could be in any of the five boroughs.

The plans for a luxury development and casino at Hudson Yards aren’t getting much love at the community board level. Manhattan Community Board 4 announced its opposition to a casino at the site in March, saying the bid would complicate the pre-existing plans for affordable housing in the area. In late 2022, Manhattan Community Board 5 approved a resolution opposing a casino in the area by a vote of 25 to 31, so a Manhattan casino isn’t happening.

The bid for a Times Square casino has prompted some early pushback. The Broadway League, a theater trade association, has said they don’t want a casino in the neighborhood.