You can’t knock Jay-Z’s hustle, but the Empire State wasn’t in the state of mind to grant him his casino wish.
A New York community advisory committee (CAC) on Wednesday voted against proceeding with a plan put forth by Caesars Entertainment, Jay-Z’s Roc Nation entertainment agency and real estate developer SL Green to bring a new multi-billion-dollar Caesars Palace casino resort to Times Square.
The CAC voted 4-2 to reject Caesars’ proposal at a meeting on Sept. 17, officially booting them from the race for one of the three available New York City brick-and-mortar casino licenses that are up for grabs. The members appointed by New York Gov. Kathy Hochul and NYC Mayor Eric Adams voted aye, but all other members voted nay.
Caesars’ consortium’s $5.4 billion plan, which would have redeveloped an office tower into a Caesars-branded hotel and casino, got a bad rap from Broadway, with concerns about the potential for the new venue to have a negative impact on the theater industry. The office tower in question currently houses the Minskoff Theatre.
Numerous workers from the theatre industry, as well as hospitality business owners and local residents, publicly opposed the project.
Real estate developer labels rejection ‘cowardice’
In a statement, Broadway League President Jason Laks said the vote would “protect the magic of Broadway” for tens of thousands of New Yorkers whom he said depend on it for their livelihoods, as well as for millions and millions of visitors to the district.
In stark contrast, SL Green CEO Marc Holliday was not happy with the decision, branding the rejection “a despicable display of cowardice,” as reported by the Associated Press.
The consortium has estimated that approval of their planned Caesars Palace Times Square would have created 3,000 construction jobs and 3,800 permanent jobs as well as generating $7 billion in tax over its first 10 years in business. Jay-Z told City & State NY last week that the idea of a world-class casino in the area “makes perfect sense” and would uplift the local community. He said the project, which was also publicly supported by the likes of Rev. Al Sharpton, was the best of any on the table.
But the CAC sided with the doubters. Approval at the CAC level was required for the proposal to advance to be considered by the New York State Gaming Commission. The NYSGC is planning to award up to three licenses for New York City-area casinos in December.
Other casino giants also out of running
On Wednesday, the CAC also rejected a $7 billion plan for Rush Street Gaming’s The Avenir on the West Side of Manhattan, also by a 4-2 vote that went along the same yay vs. nay lines as the Caesars vote. Two other operators, Las Vegas Sands and Wynn Resorts, abandoned bids before even reaching the CAC process.
Other operators still in the running for one of the New York licenses include Bally’s, Hard Rock International, MGM Resorts and Genting, which runs Resorts World in Queens.
All regional CACs must confirm their recommendations by Sept. 30 ahead of the state gaming commission’s decision later this year.
One thing we do know now is that while Jay-Z may have 99 problems, a Manhattan casino ain’t one.
