ATLANTIC CITY — Two massive casinos proposed for Manhattan, including one by the largest owner of casinos in Atlantic City, have been rejected, removing some of the potential competition for the seaside gambling resort.
A Community Advisory Committee on Wednesday rejected a proposal by Caesars Entertainment, rap mogul Jay-Z and a major New York developer to build a $5.4 billion casino in the heart of Times Square.
Caesars Entertainment owns three of Atlantic City’s nine casinos: Caesars Atlantic City, Harrah’s Resort Atlantic City and Tropicana Atlantic City.
The company issued a statement Thursday saying it will remain engaged with New York despite the ruling.
“While we are disappointed by the outcome, our commitment to New York remains unwavering,” it said. “We are proud of our strong partnerships across the state as anchored by our Caesars Sportsbook platform, where we continue to invest and innovate to serve New Yorkers.”
A separate committee also rejected another Manhattan casino proposal Wednesday, shooting down The Avenir, a $7 billion casino project next to the Javits Center at 11th Avenue and 41st Street.
Its applicants were Silverstein Properties and Rush Street Gaming.
That leaves six remaining proposals, one of which is in Manhattan: Freedom Plaza, an $11.1 billion casino project by the Soloviev Group and Mohegan Gaming on First Avenue.
The Atlantic City Boardwalk has been named one of the top 10 boardwalks in the country, according to travel site Fodor.
The moves are being closely watched in Atlantic City, which expects to lose some of its business to competition from New York. The state plans to award licenses for up to three new casinos in or near New York City in places from which Atlantic City traditionally draws customers.
There is widespread expectation in the gambling industry that two existing racetracks with slot machines in Queens and Yonkers will get licenses to upgrade and become full-blown casinos, leaving one more potential project to be approved.
“The Atlantic City market is right to be concerned when it comes to downstate New York casinos, and a Manhattan-based property specifically,” said Jane Bokunewicz, director of Stockton University’s Lloyd D. Levenson Institute of Gaming, Hospitality & Tourism, which studies the Atlantic City gambling market.
“While it is less likely that New York and New Jersey casinos will directly compete for their respective, hyper-local, convenience gambler audiences — this has largely been impacted by the advent of online casinos — they will compete for regional” customers, she said.
She said Manhattan attracts international visitors, as well as people from all parts of the United States. Due to transportation infrastructure, she added, those traveling to New York City by air have never been a significant part of the Atlantic City tourism market.
“Therefore, New York casinos, regardless of their location, will always have an edge on Atlantic City for this fly-in audience,” Bokunewicz said. “This is not an audience that Atlantic City will lose, but rather an audience New York may be able to grow and expand.”
She said competition for the regional drive-in audience is where Atlantic City will be most impacted by new casinos in or near New York City.
“Residents of New York City and surrounding areas that frequently travel to Atlantic City for a casino experience may choose to visit the new casinos, closer to home for at least some of their trips,” Bokunewicz said.
“For other regional, drive-in tourists it will likely come down to the attractiveness of the locations’ offerings,” she said. “Manhattan, as a national hub for culture and entertainment, has much to offer that many travelers may find appealing.
“At least in the short-term, Atlantic City should expect to see a dip in visitation as the ‘novelty effect’ plays out among regional travelers,” she said. “However, in the long-term the New York experience and the Atlantic City experience may be sufficiently distinct for both to co-exist.”
Don Guardian, a state Assemblyman and former Atlantic City mayor, said the number of Manhattan casinos could influence New Jersey’s actions if another serious push is made to approve casinos in North Jersey. Hard Rock International is partnered with Meadowlands Racetrack operator Jeff Gural on a proposed casino at the track in East Rutherford, just outside New York City.
In May, two Democratic lawmakers introduced a bill that would once again put a referendum on the ballot asking voters whether to authorize casino gambling in North and Central Jersey. A similar referendum was overwhelmingly defeated in 2016.
The new measure by state Sens. Paul Sarlo, D-Bergen, and Vin Gopal, D-Monmouth, specifies that the casinos would open at the Meadowlands Racetrack and at Monmouth Park Racetrack in Oceanport, Monmouth County.
It has not been acted upon since being introduced.
Sarlo said at the time that the bill was a potential response by New Jersey putting one or more casinos on its doorstep.
“This plants a flag to send a message to New York State that if they open a casino in Manhattan, that New Jersey is ready to respond to the competition,” Sarlo said in a statement. “New Jersey isn’t going to let gambling dollars in northern New Jersey leave our state for a casino in Manhattan.”
With six games in Philadelphia and eight games in the shadow of New York City, Gus Penaranda said the entirety of New Jersey can serve as a base camp for teams and fans when the 2026 World Cup comes to North America next summer.
But Guardian rejected that reasoning.
“The concept that if you build something in the Meadowlands, you take it away from New York City, you’ve got to be out of your mind,” he said. “I lived in North Jersey. When you’re in Manhattan, you’re in Manhattan; nothing else compares.
“Doing a casino (in the Meadowlands) makes no sense,” Guardian said. “We’re going to lose some of our business when a casino opens up in New York, there’s no doubt about that. But bringing additional gaming into the state of New Jersey absolutely is going to close some Atlantic City (casinos). There’s only so much money.”
Among the remaining New York proposals are projects from Hard Rock International and New York Mets owner Steve Cohen for an $8.1 billion project next to CitiField, the Mets’ home in Queens, and a $4 billion project in the Bronx by Bally’s Corp.
The six remaining casino proposals will be voted on by their Community Advisory Committees in the coming weeks. Those that survive will go before the New York Gaming Facility Location Board, before the New York Gaming Commission awards the final licenses by the end of this year.
Contact Wayne Parry:
609-272-7000
wparry@pressofac.com
X @WayneParryAC
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