Several proposals for casino development in New York City are currently under consideration. But competition for licensing is fierce and opposition from a community group is complicating efforts in one prospective neighborhood.
The current business activity was set in motion a decade ago. A law passed in 2013 permitting four upstate casinos and then a ten-year wait for three casino sites downstate.
Now that time has arrived. Real estate firms are teaming up with gaming and entertainment companies in high-stakes campaigns for licenses.
Thor Equities is working with Saratoga Casino Holdings on a plan for a casino in Coney Island.
The Related Companies and Wynn Resorts (WYNN) are looking at a site in Hudson Yards.
And SL Green Realty is working with Caesars Entertainment (CZR) to revamp a property it owns on Broadway in the heart of Times Square.
A Controversy Erupts Over Times Square Site
Caesars and SL Green have also enlisted the visibility and power of hip-hop musician, record producer, and entrepreneur Jay-Z's entertainment agency in their licensing bid.
"New York is a beacon, the epicenter of culture. We have the opportunity to create a destination at the heart of Times Square, the true crossroads of the world," said Jay-Z in a Roc Nation press release. "My partnership with SL Green and Caesars, this coalition, has all the promise and commitment to economic opportunity, growth, and enrichment for the community, and everyone who visits the Empire State."
But a high-profile trade association, whose members include theatre owners and producers, has voiced its opposition to the plan. The Broadway League said it stands firmly against it.
"The proposed plan to bring a casino to Times Square would introduce widespread economic and operational disruption, unprecedented congestion, and decreased safety and security," wrote Charlotte St. Martin, the organization's president, in a press release.
The SL Green, Caesars, and Roc Nation groups talked up community benefits and local business upsides to the proposal.
"Caesars Palace Times Square will not only provide billions in tax revenue to New York City and State, it will also accelerate New York’s economic recovery through strategic partnerships with area businesses utilizing its industry-leading loyalty program Caesars Rewards, home to more than 65 million members," Roc Nation wrote.
"Caesars Rewards members will be able to use credits at Broadway shows, local hotels, restaurants, retail stores, comedy clubs, entertainment venues, and more, driving more tourists and New Yorkers to area businesses and creating thousands of direct and indirect jobs in and around Times Square," the statement continued.
A Think Tank Researcher Sides With Broadway League
In November, the Broadway League retweeted a post by Lucy Dadayan, a senior research associate with the Urban-Brookings Tax Policy Center at the Urban Institute.
"Do the benefits of casinos outweigh the societal costs?" tweeted @lucydadayan. "History says no."
"Supporters argue that casinos promote local economic development, create jobs, and provide a voluntary expansion of entertainment options. But casinos can lead to higher crime and bankruptcy rates in a local community as well as addiction among some gamblers," Dadayan wrote in a piece published by Crain's. "The jobs they create may not include useful or transferable workforce skills that can be applied elsewhere."
"Clearly some of the arguments made by proponents and opponents can be true, and gambling isn’t the only legal activity with negative externalities," Dadayan wrote. "Communities, however, need to figure out if the benefits outweigh the costs."
