Wynn Resorts, a prominent name in the casino industry, has surprisingly withdrawn its bid for a coveted New York City casino license. The announcement, made on Monday, cited the rezoning process and a reevaluation of capital allocation as the primary reasons behind this unexpected move. The company had partnered with Related Companies to develop a luxurious integrated resort in the upscale Hudson Yards neighborhood, a location already brimming with high-end retail and dining. This decision marks a significant shift in the competitive landscape of the New York casino market.
The company’s statement pointed towards years of persistent opposition as a contributing factor to their decision. This isn’t the first major setback in the New York casino licensing process this spring. Las Vegas Sands, another industry giant, previously announced its withdrawal from the bidding, citing concerns about potential competition from online casinos should the state legalize iGaming. Sands is currently seeking a third-party buyer to take over its extensive development work, which has already consumed years of effort and considerable financial investment.
Behind the scenes, industry insiders whisper of a highly politicized and costly licensing process, fraught with delays, and seemingly less focused on the merits of individual proposals. This has left many casino executives frustrated with the complexities and uncertainties involved. While MGM Resorts and Resorts World are considered frontrunners for some licenses due to their existing gaming operations, the competition remains fierce. Other major players, such as Steve Cohen’s partnership with Hard Rock International near Citi Field and Caesars’ collaboration with SL Green and Roc Nation in Times Square, continue to vie for the limited licenses available.
Wynn’s departure highlights the inherent challenges and potential risks associated with the New York City casino market, even for established players. The company plans to redirect its capital towards stock buybacks and other existing and future projects, including a groundbreaking casino resort development in the United Arab Emirates. The withdrawal leaves many wondering about the future of the New York casino landscape and the long-term implications for the remaining contenders.
