Las Vegas-based luxury hospitality and casino operator Wynn Resorts has revealed new details about its New York City plans. The company hopes to build a $12 billion mega casino resort in the Hudson Yards neighborhood in Manhattan in New York City.
The project would move forward only if granted one of three coveted upcoming licenses for a New York City casino. And there is a competitive field.
Wynn’s multibillion idea is in collaboration with New York-based real estate development firm Related Companies.
Wynn New York City would have an 80-story tower as its centerpiece, with casino gaming, luxury accommodation and hospitality options, and retail outlets. It would also offer a 5.6 acre riverside park and gardens.
“The next phase of Hudson Yards is a $12B total project investment in New York’s future that, if approved by City and State officials, will create tens of thousands of jobs, 1,500 units of housing, including hundreds of new affordable apartments, and billions in much-needed revenue for the City and State,” said Jeff T. Blau, CEO of Related Companies, in a press release.
The Plan
Wynn is one of a dozen or so gambling companies, including several based in Las Vegas, that have sent out proposals for their downstate New York casino pitch.
To be voted in, the plans must be approved by various levels of politicians, bureaucrats, and the public before being sent to the New York Gambling Commission.
Just the upfront licensing fee for the successful bidders is $500 million. Almost all the casinos planned are projected to cost at least $1 billion. Wynn’s is one of the more expensive at a projected $12 billion, although presumably that cost will be split with Related Companies.
Operators wouldn’t be ready to put in billions if they weren’t expecting it to be a very profitable venture in the long-term. The New York sports betting market is already the largest in the U.S., and some experts have predicted that the three planned mega casino resorts could together rival the entire billion-dollar monthly Las Vegas market for revenues in the coming decades.
The state of New York is also betting big on the casino projects, with tax revenues projected into the high hundreds of millions per year at market maturity.
The Development
The massive Wynn New York City development will only see 3% of the floorspace for casino gaming. But gambling is still expected to be the primary revenue driver.
The new Wynn New York would sit on top of a former Long Island Railroad train depot. In 2009, the site was partly transformed with a public elevated walkway and park area with river views called The High Line.
The centerpiece 80-story tower would have retail and hospitality space on the ground floor, a casino on the second and third, and then hotel and event space above that.
As well as an expansive park and all the shopping and hospitality experiences, part of any successful project in NYC will have to offer neighborhood benefits. In this case, the developer is promising a new public school and 1,500 housing units, including 324 affordable apartments — affordable by New York standards, at least.
The Competition
All of that shows how far companies are willing to push their budgets to build a casino in New York City.
In fact, there’s really only one license available for some 10 competing companies. That’s because two of the licenses are widely expected to be grandfathered for the existing New York City racing casino venues Resorts World New York and Las Vegas-based MGM’s Empire City Casino.
Some are speculating that the Resorts World Las Vegas money laundering scandal may have hurt operator Genting’s chances with New York regulators come the 2025 decision time.
Casinos must also be wary of public opinion and community groups. New York politicians have pitched the casino licenses as a way to bring in much-needed tax funds, with the state facing a possible budget deficit of $4.3 billion in 2025.
However, residents are vociferously against the proposals in certain areas of the city. Wynn’s bid has its local opposition, mostly from supporters of The High Line public park. But is considered one of the less-controversial options overall.
The competition is still intense. Las Vegas-based Caesars Entertainment is partnering with rapper Jay-Z’s Roc Nation to propose a casino resort just off the iconic Times Square.
Las Vegas Sands is planning to knock down a disused arena for its Long Island resort, which would be the company’s return to its home market after the 2022 sale of its U.S. interests.
Bally’s has bought the former Trump Links golf course in the Bronx for its site, and Hard Rock International is partnering with billionaire New York Mets owner Steve Cohen on a proposed casino near the Citi Field baseball stadium in Queens.
David is an online casino expert who specializes in online slots and boasts over 10 years experience writing about iGaming. He has written for a wide range of notable publications, including eSports Insider and WordPlay Magazine.
David graduated Derby University with a BA Degree in English Literature and Creative Writing.
