Wynn becomes latest bidder to drop out of New York casino race
And then there were eight: Wynn Resorts announced on Monday that it is officially dropping out of the race for one of three available downstate New York casino licences.
Wynn is now the third potential applicant to withdraw its bid before the 27 June application deadline, joining Las Vegas Sands and Hudson’s Bay Co. Hudson’s Bay withdrew on 10 April and LVS followed two weeks after that.
“After careful consideration, we have decided not to lodge an application for a gaming licence in New York City,” Wynn said in a statement. “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 upcoming developments and stock buy backs, 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 and partners Related Companies and Oxford Properties had proposed a $12 billion mixed-use development in Manhattan’s Hudson Yards neighbourhood. The proposal, which is an adaptation of a previous Related development agreement in Hudson Yards, featured a range of amenities, including a casino, hotel, school and housing units. That latter item was a key focal point for the project’s opponents, as Related had previously pledged a higher number of units.
This pushback led to a doubling of the housing commitment in April, although that last-minute change now seems moot. It is unclear whether Related will still pursue the project without Wynn and the casino component.
“We sincerely thank those who have supported our efforts, including our partners at Related Companies and continue to believe that their proposed Hudson Yards West development is an outstanding opportunity for New York City,” Wynn concluded.
Writing was on the wall
The announcement, although significant, is not entirely unexpected. Wynn posted a 9% YoY revenue decline in the first quarter, including adjusted EBITDAR declines for all six of its properties worldwide. The company for years has been all-in on its resort project in the United Arab Emirates, slated to open in 2027.
These financial factors were also mingled with a fear of digital expansion, which was the chief reason why LVS, one of Wynn’s biggest competitors, dropped out of the running. New York did not come close to legalising iGaming this year, but its online sports betting market is the biggest in the US. Several adjacent states with legal iGaming, including Pennsylvania, Connecticut and New Jersey, have seen record revenue from it so far in 2025.
The general sentiment, as LVS expressed, is that expansion allowing online casinos is inevitable, which could cannibalise land-based revenue. LVS’ exit in some ways set the stage for Wynn, as both companies strictly operate luxury, capital-intensive resorts and therefore deploy similar strategems. Both are among the highest spenders in the industry and their exits could be an ominous sign to the remaining bidders, most of whom don’t have the same spending power.
“We continue to be in the running in New York, but we absolutely will not get over our skis to win a licence there,” Wynn CEO Craig Billings had told analysts earlier this month.
Failure to launch
More than a month remains before New York’s application deadline, but the process has been somewhat lacklustre from the start. Aside from the recent withdrawals, most of the remaining bids face numerous logistical hurdles and local opposition has long plagued most of the proposals.
With Hudson Yards gone, two other Manhattan bids – Caesars’ Times Square proposal and Silverstein Properties’ Avenir project – have environmental review hearings scheduled for this week. But as W42ST reported, “neither meeting has been broadly advertised to the general public. Instead, announcements were buried in state documents hosted on the New York State Gaming Commission’s website – and primarily sent to other government agencies only.”
This example points to an overall level of disorganisation and unpreparedness on the state’s part that bidders have complained about for months. The process has dragged on so long that state lawmakers last June passed a bill requiring proposals to be submitted that August, only for it to be vetoed by Governor Kathy Hochul.
A number of projects require environmental processes, which are now coming close to next month’s deadline at no fault of the bidders. All of the bids were announced back in 2023 and the significant delays are a big factor for those withdrawing. Currently, licences are expected to be handed down by the end of the year.
Remaining bids imperfect
Looking elsewhere, Bally’s is still alive with its Ferry Point bid in the Bronx, although there are serious doubts whether the extremely leveraged company has the funds needed for such a project. At a recent debate involving Bronx political candidates, the project was not outwardly endorsed by any candidate, per Bronx Times.
There are other projects on the fringes that have gone somewhat under the radar. This includes The Coney, the Coney Island bid from Thor Equities and the Chickasaw Nation, which received initial planning approval this month. Freedom Plaza from Soloviev Group and Mohegan is another, although Mohegan is clawing itself out of a massive debt hole that resulted in the loss of its Korean casino.
Steve Cohen’s $8 billion Metropolitan Park now may be the frontrunner, as it continues to secure requisite rezoning approvals. Cohen and partner Hard Rock have overcome opposition from local state Senator Jessica Ramos by winning support from other nearby officials, who have championed the necessary rezoning legislation.
RW and MGM in hot water
One of the most ironic parts of the drawn-out selection process has been the underlying belief that two of the licences are already earmarked. MGM Resorts and Genting Berhad have been expected from the start to secure licences to expand their existing racinos in Yonkers and Queens, respectively.
But both Genting and MGM (in addition to Wynn) have since been subject to multimillion-dollar anti-money laundering fines in Nevada. Illegal bookmakers were allowed to frequent casinos operated by both and the investigations featured many of the same offenders. Those fines do not have a direct impact on their New York bids but will surely come up in the course of review.
At a hearing last September, New York State Gaming Commission chair Brian O’Dwyer said his agency “will review all relevant data as to whether a potential licensee possesses the qualifications to hold a casino licence”, which includes “the allegations lodged against Wynn and Resorts World”, per Casino.org. The MGM fine had not yet been announced.
Resorts World also made big headlines last April by pledging over $1 billion in yearly tax payments. Other bidders have ruffled at this behind the scenes, saying it paints an unrealistic picture and makes lawmakers tax-hungry.
The state already boasts the highest online sports betting tax rate at 51%. Its tax rate for existing casinos varies by region, but it is at least 30% of slot GGR. Nevada and New Jersey, by comparison, are both under 10%.
New York just another Japan?
In some ways, the New York casino bidding process has mirrored that of Japan. There was much excitement when that country first starting fielding bids in 2018, as many thought a competitive Japanese market could rival Macau or Singapore. But a similarly drawn-out process mixed with Covid shutdowns ultimately whittled the field to just one project, MGM Osaka. That project broke ground in April and won’t open until 2030, by which time Thailand could also be up and running if it approves casino developments.
Japan is now expected to reopen a second bidding window for up to two additional licences. There is much doubt, however, as to who would be willing to reengage after walking away. Wynn, for its part, gave up on the market in 2020 and would only consider coming back “if the setup was right”, CEO Billings told analysts this month. New York could face a similar missed opportunity.
“This is Japan 2.0,” Las Vegas-based consultant Brendan Bussmann commented after Wynn’s announcement on Monday. “It’s been that way since RWNY promised a billion annually in taxes in April 2024, but it will continue to get worse.”
With about a month to go before the deadline, Bussmann said it’s possible there will be further erosion.
“I’m going to set the line at 8 and take the under for proposals that get submitted,” he said.