Wynn Resorts Withdraws Casino Plans in New York City

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The skyline of New York City, a hub for urban developments and proposed casino projects.

News Summary

Wynn Resorts has officially abandoned its plans for a $12 billion casino resort in New York City due to ongoing municipal delays and regulatory challenges. The company will shift its focus to existing developments and stock buybacks instead. This decision reflects the increasing complexity and opposition faced by casino operators in the city, marking Wynn as the second major gaming entity to withdraw from this market this spring, following Las Vegas Sands. Future gaming opportunities remain, with other operators still vying for licenses.

New York City – Wynn Resorts has officially abandoned its plans to pursue a gaming license for a casino resort in New York City, citing protracted municipal delays as the primary reason for its decision. The announcement was made on Monday, following a series of challenges and opposition that the casino operator faced in its bid to establish a significant resort in the area.

The company indicated that the recent rezoning process for the Hudson Yards area revealed, in their view, more advantageous uses for their capital. As a result, Wynn Resorts will focus its financial efforts on existing developments and stock buybacks rather than continuing with its proposed $12 billion skyscraper casino resort project on Manhattan’s Far West Side.

Prior to this development, several hurdles had already presented challenges for the casino project, including a vote by a Manhattan community board against necessary zoning changes in January. Despite aiming to create 5,000 jobs for the local population, Wynn expressed concerns about the persistent opposition that any casino operator would likely encounter in the city.

The state of New York is expected to make pivotal decisions regarding three downstate casino licenses by the end of the year, with various Las Vegas gaming operators, such as Caesars Entertainment, MGM Resorts, and Genting Berhad’s Resorts World, showing interest in expanding within the city. Wynn’s decision marks them as the second major gaming entity to withdraw from the New York casino license pursuit this spring, following Las Vegas Sands, which previously cited competition from potential legalized online gaming as a concern.

Wynn Resorts’ planned project was set to be a luxurious destination within Hudson Yards, an area known for its upscale shopping and dining experiences. The company had partnered with Related Companies in this ambitious venture, aiming to capitalize on the bustling atmosphere of the metropolitan hub. However, the increasing complexity of obtaining casino licenses in New York, a process characterized by heavy political engagement and considerable financial implications, appears to have contributed significantly to their withdrawal.

In the wake of Wynn’s decision, several alternative proposals remain on the table. Notable potential projects include a collaboration between Hard Rock International and Steve Cohen near Citi Field, alongside a project in Times Square between Caesars and SL Green with Roc Nation.

Wynn Resorts has announced that it will redirect its capital toward other endeavors, including stock buybacks and possibly a new casino resort development in the United Arab Emirates. The company has faced recent scrutiny, specifically regarding anti-money laundering compliance issues. A proposed settlement with Nevada regulators involves a $5.5 million fine for violations related to improper monetary transactions.

This scrutiny follows Wynn’s earlier $130 million forfeiture in September, linked to a non-prosecution settlement concerning questionable financial dealings. In light of these violations, the Nevada Gaming Control Board has noted significant changes made in management and improvements to anti-money laundering protocols that have emerged as part of ongoing investigations.

The cancellation of Wynn Resorts’ New York casino project highlights the ongoing challenges faced by the gaming industry within the city, with regulatory complexities and community opposition shaping the current landscape of potential developments. With several other operators still vying for gaming licenses, the outcome of this ongoing competition remains to be seen.