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On Monday, Wynn Resorts voluntarily dropped out of the bidding race for a New York casino license. There are still many other companies vying for one of the three available licenses, each of which represents a financial commitment of at least $1 billion. It wasn’t the cost that caused Wynn to abandon its plan for a resort at Hudson Yards, however, but the fact that there was too much resistance from the local community.
The company said:
“After careful consideration, we have decided not to lodge an application for a gaming license in New York City.”
Wynn isn’t the first company to drop out of the running. In April, Las Vegas Sands did the same, stating that it felt that the potential legalization of New York online casinos represented too much of a risk for its retail-only business. However, that project isn’t completely dead, as Sands is looking for another company to replace it.
Some of the competitors that remain in the race are:
- Caesars Entertainment
- Hard Rock International
- MGM Resorts
- Bally’s
- Mohegan
Wynn cites opposition as reason for withdrawal
Wynn suggests that the ongoing rezoning in the Big Apple State could be a problem for it in the future, combined with local opposition. Community groups such as the High Line were worried about the project’s impact.
It didn’t help that Wynn had reduced the number of housing units it had promised to include in the development by 2000. The plan also included a hotel and a school. To make this come alive, they’d ed forces with Related Companies and Oxford Properties to pitch a $12 billion casino-resort for Hudson Yards in Manhattan.
Wynn said that in light of those difficulties, it would rather spend its money repurchasing more of its own shares on the open market than continue the Hudson Yards West development. Its other expansion plans include establishing a casino resort in the United Arab Emirates.
“The recent rezoning process has made it clear to us that there are uses for our capital more accretive to our shareholders, such as investment in our existing and developments and stock buybacks, than investing in an area in which we, or any casino operator, will face years of persistent opposition despite our willingness to employ 5,000 New Yorkers,” Wynn said in a statement.
MGM, Resorts World, and who else?
Although there are technically three licenses up for grabs, most experts believe that two will go to MGM in Yonkers and Resorts World in Queens, leaving only one up in the air.
That prediction is based on the fact that those two companies are already running successful VLT establishments in those locations. Their existing setups and customer bases make them logical choices, while there is no similarly obvious pick for the last license.
The timeline for the license procedure is as follows:
- June 27, 2025: Deadline for license applications.
- September 30, 2025: Deadline for CACs to vote on projects.
- December 1, 2025: Projected date for the GFLB to make licensing decisions.
- December 31, 2025: Projected date for the Gaming Commission to issue licenses.
