Hudson Yards Casino Project Advances with New Approval

The New York City Planning Commission has approved a rezoning application for a casino complex at Hudson Yards, Manhattan, by a vote of 9-4. It shows increasing support for the casino industry in the New York City area.

This action represents a significant step forward in the ongoing effort to redevelop the Western Rail Yards into a commercial and entertainment center. The rezoning is a prerequisite for securing the developers' bid for one of three New York State casino licenses to be granted later this year. New York has no legal real-money online casino market, and the only brick-and-mortar casinos are currently upstate.

The "Hudson Yards West" project is a collaboration between Related Companies, Wynn Resorts, and Oxford Properties Group. The project, proposed on the current railway land, aims to redevelop the site with a combination of residential area, public park space, and a casino, pending license approval.

Current proposal

The current proposal modifies a 2009 plan that was primarily residential in focus. Significantly, the new plan reduces the number of units expected to be built by some 3,000 without affecting the projected breakdown of affordable units.

Related Companies cited the loss of economic viability of the previously proposed luxury condominiums as the reason for redesigning.

Dan Garodnick, chairman of the City Planning Commission, emphasized that the commission's vote is only for the rezoning and not for the casino's approval. He further stated that licensing would be a highly competitive process and that there is no guarantee that a casino would be constructed at this site.

The developers have pledged 1% of the casino’s gross gaming revenue towards giving back to surrounding communities like Chelsea, Hell's Kitchen, and the West Side of Manhattan. The construction of a casino would be expected to necessitate improving the area's transportation infrastructure to accommodate increased traffic volumes.

Proposals for New York downtown casinos can continue until June 2025 under new timelines put forward in SB 9673A in 2024.

Competition for coveted licenses

The Hudson Yards project is one of several vying for the available casino licenses. Steve Cohen's group, the New York Mets owners, recently received approval for their project in Queens.

Other contenders include a Jay-Z backed proposal, a Coney Island project, and a scheme adjacent to Bally's golf course in the Bronx. At least 11 firms are competing for the three permits.

One contender has already withdrawn. Hudson's Bay Company, parent of Saks Fifth Avenue, withdrew its plan this week due to financial troubles.

The application deadline for casino licenses is June, with zoning approvals, land-use agreements, and community approvals by the last day of September. The holders of the licenses are to be announced by year-end by New York Governor Kathy Hochul.

The opening of casinos in New York City will bring significant economic benefits. Estimates suggest that there can be potential initial revenues of $1.5 billion and annual tax revenues of more than $500 million.