A proposed Caesars Palace casino in Times Square, backed by Jay-Z, has had its bid for a lucrative New York City gambling license rejected following fierce opposition from Broadway theatre owners and producers.
The state-commissioned community advisory committee turned down the $5.4 billion plan, which sought to transform an office tower into a Caesars-branded hotel, gambling, and entertainment complex.
Concerns centred on the potential impact on the vibrant theatre district. Marc Holliday, CEO of SL Green, the project's primary developer and property owner, strongly criticised the decision after a brief vote in a conference room overlooking Times Square.
“This was a despicable display of cowardice, a complete lack of consideration for all the people who would benefit from this," he shouted at committee members as they silently filed out. “Go run and hide.”
The Rev. Al Sharpton, who has been a vocal backer of the casino plan, criticized the vote as a decision that preserved the historically white control of Times Square entertainment businesses.
“We will remember that in the community,” he said after the all-white committee voted.
Local board approval was required for the proposal to be considered by the state Gaming Commission, which plans to award up to three licenses in December.
The Times Square casino developers, which included the hip hop mogul’s Roc Nation company, proposed renovating an office tower at 1515 Broadway that currently houses the Minskoff Theatre, which is home of long-running “The Lion King” musical.
They envisioned the Caesars-branded gambling hall becoming one of the world’s preeminent resort casinos and had lined up other influential backers, including Sharpton and former NYPD Commissioner Bill Bratton.
“New York City is the entertainment capital of the world, so the idea of a world class casino here makes perfect sense,” Jay-Z said in a recent interview with City & State, a publication covering state and local politics.
But Broadway theater owners, producers and labor unions strongly opposed the plan, staging boisterous protests in the Crossroads of the World and packing community hearings in recent months.
The Broadway League, a trade group representing America’s performing arts theaters, argued that the proposed casino would draw patrons away from neighborhood businesses and threaten a theater industry still reeling from the COVID-19 pandemic.
Jay-Z and other casino backers countered that the casino wouldn’t “compete with Times Square,” but “complement it.”
In his City & State interview, the Brooklyn native said the proposal purposefully did not have space for retail in order to encourage visitors to patronize Broadway’s shows, restaurants and shops.
“Casino visitors will buy tickets, fill seats, book dinners before shows, and keep hotels in the area full,” Jay-Z said. “We’re creating a hub that draws even more people into the neighborhood, generating new energy, new business, and new opportunities for everyone.”
The casino developers also promised to invest $250 million in community projects, including a public safety plan designed by Bratton and a multimillion-dollar civil rights museum endorsed by Sharpton.
The eight casinos currently in the running for a state license have to secure local board approval by the end of the month. None of them are in New York City.
The state Gaming Commission is then expected to conduct its own review before awarding up to three licenses in December.
Two other casinos are proposed for Manhattan: one on its West Side near the Jacob K. Javits Convention Center and another on its East Side near the headquarters of the United Nations.
Also in the running is a Bally’s casino on a public golf course in the Bronx that was once run by President Donald Trump’s company. That project could result in a $115 million payday for the Republican if developers win a license.
Elsewhere, a sprawling gambling hall is envisioned along Coney Island’s iconic boardwalk in Brooklyn, and a Hard Rock casino has been proposed next to Citi Field in Queens, where the New York Mets play.
Two “racinos” -- slot parlors built alongside horse racing tracks — are also seeking a license to become full-fledged casinos with live table games such as blackjack and poker.
MGM Resorts is proposing a $2.3 billion expansion of the Empire City Casino at Yonkers Raceway.
Resorts World, owned by Malaysian casino giant Genting, is proposing a $5.5 billion investment to its gaming facility at the Aqueduct Racetrack in Queens.
The casino race comes after New York voters in 2013 approved a referendum authorizing up to seven full casinos in the state.
Four full casinos have since opened, though all of them are located upstate, far from Manhattan.
The state also has nine gambling halls offering slot machines and other electronic gambling machines but no live table games.
