The race for the downstate New York casino license has seen another large competitor drop from the bidding in recent weeks as Wynn Resorts has officially announced its withdrawal. Ending their $12 billion casino complex bid for the space at Hudson Yards, Wynn representatives cited sustained community opposition, complex zoning challenges, and an increasingly saturated market as the main factors in this decision.
Wynn is now the third competitor to drop out of the race for this gaming license in the Big Apple. Leaving behind eight competitors still in the race, Wynn follows in the footsteps of Las Vegas Sands and Hudson’s Bay Co, who have all dropped out before the 27th June deadline for the application.
Wynn Resorts’ initial plan was to create a massive multiplex in partnership with Related Companies and Oxford Properties featuring a casino, hotel, school, and housing units.
The initial plan was opposed by locals from the start, but pushback led to a reconsideration of the plan in April when opponents forced a commitment to doubling the housing units that would be included in the plans. Something, Wynn will no longer need to worry about at all.
The community opposition remains a massive hurdle for any potential investors in the area, but Wynn Resorts also had other things that may have weighed into their decision. Following a 9% decline in their year-on-year revenue from Q1, the company may be facing some financial pressures. Despite their hopeful optimism about exploits in the United Arab Emirates and the potential for this, where they are due to open a resort in 2027, Wynn has undoubtedly fallen victim to the astronomical rise in the online casino industry. iGaming has exploded all over the States, and whilst New York has not fully legalised iGaming, the online sports betting market is the biggest in the USA.
New York’s surrounding states have legislation legalising iGaming too, which must unquestionably affect the land-based casinos in the area. Furthermore, new crypto casino set-ups that boast offshore bonuses have entered the market and offer domestic gamblers the chance at iGaming even in jurisdictions that have bans on the market in place through gray area loopholes. This allows players to legally play offshore casinos and tap into the market from the comfort of their own homes.
Others in the industry have concluded that there is no doubt online casinos will get the green light to enter the industry legally shortly, and this could see huge impacts on the historic land-based casinos in the area.
With just over a month until the deadline, there is mounting frustration from those still involved. Logistical headaches and strong local opposition still challenge the current bids, especially in the proposed Hudson Yard site. Other proposals from Caesars and Silverstein Properties have important environmental hearings that will need to be squeezed in and have been kept hushed by the press and the New York State Gaming Commission. This hectic finish to the bidding process, which has been seemingly disorganized, dragged out, and reminiscent of Japan’s similar faux pas, will not excite the prospective businesses.
As the race goes on and the bidding continues, competitors will have to figure out if they think wading through the continual hurdles is worth it but two things are for sure, the withdrawal of Wynn Resorts from the race is a massive indicator of the impact that iGaming is having on the gambling industry in the US whilst also reminding the local communities that they do still have some power against large multinationals.
