The race for New York’s coveted downstate casino licenses has taken another twist as Saks Fifth Avenue officially abandoned its bid to transform its iconic Manhattan department store into a high-end gaming destination. This development comes as state regulators have pushed back the timeline for awarding licenses to late 2025, significantly later than many bidders had anticipated.
The Shifting Casino Landscape
The competition for New York’s three downstate casino licenses has been intense, with originally 11 companies vying for the opportunity to establish gambling operations in one of the world’s most lucrative markets. With Saks Fifth Avenue’s withdrawal, announced on Thursday, April 10, the field has narrowed to 10 contenders, each proposing vastly different visions for casino development across the New York City metropolitan area.
“At this time, the company is no longer pursuing a downstate New York gaming license and is focused on other strategic priorities,” said a Saks spokesperson, confirming the end of what many industry observers had considered a longshot bid from the beginning.
The casino licensing process has faced repeated delays. According to New York State Gaming Commission Executive Director Robert Williams, the commission won’t be ready to make licensing decisions until “late 2025,” a timeline that accounts for numerous regulatory hurdles including local zoning approvals and environmental reviews1.
This revised schedule represents a significant setback for hopeful operators who, earlier this year, expected the 30-day bidding window to open during the first half of 2024. Gaming law expert Bennett Liebman characterized the new timeline as “inevitable” given the complex approval process.
Inside Saks Fifth Avenue’s Abandoned Casino Plan
Hudson’s Bay Company, Saks’ parent organization, had envisioned transforming the top three floors of its flagship Manhattan store into a boutique casino encompassing approximately 200,000 square feet. The proposal stood out among competitors for its relatively modest scope and unique location within an existing retail landmark2.
The Saks plan had potential advantages that initially generated optimism. Unlike most competitors proposing ground-up construction projects, Saks promoted the possibility of having its casino operational within just one year of receiving a license. This quick-to-market approach paralleled the advantage held by existing racinos like Empire City at Yonkers Raceway and Resorts World New York City in Queens, both considered frontrunners for licenses.
Efforts to advance the proposal continued well into 2024, with lobbyists still advocating for the project as recently as July. However, industry observers had noted diminishing momentum behind the Saks bid in recent months, with little visible progress or public updates.
Why Saks Folded Its Hand
Several factors likely contributed to Hudson’s Bay Company’s decision to withdraw from consideration. Perhaps most significantly, the company never secured a partnership with an established gambling operator – a critical shortcoming given Saks’ lack of gaming industry experience.
The proposal also faced considerable local opposition. Community boards representing the Midtown area expressed concerns about introducing a casino to the historic retail district, adding to the challenges of redeveloping portions of a landmark building.
Financial considerations almost certainly played a role in the decision. New York State requires a minimum investment of $500 million from casino developers, plus an additional $500 million license fee – substantial commitments for a boutique casino with limited gaming space compared to larger resort proposals.
The competitive landscape has also intensified, with rival bidders proposing massive development plans with extensive community benefits. Resorts World, for instance, recently unveiled a $5 billion development plan for its Queens property, promising to create 3,750 permanent jobs and 5,000 union construction positions.
The Remaining Contenders
The field of casino license aspirants still includes several high-profile projects backed by major gaming operators and real estate developers.
Resorts World has positioned its Queens expansion project as a job creation powerhouse, emphasizing that more than half of its projected 3,750 permanent positions would materialize within 100 days of opening. The company also touts its track record of community support during the COVID-19 pandemic and proposes creating what would become the second-largest meeting space facility in New York City.
Las Vegas Sands continues pursuing its ambitious $4 billion casino resort proposed for the Nassau Coliseum site on Long Island. The project represents one of the largest investment proposals among the contenders.
In Times Square, a controversial proposal from Caesars Entertainment and SL Green for a Caesars Palace at 1515 Broadway has generated substantial debate. The project has split local stakeholders, with the “No Times Square Casino Coalition” (including The Broadway League and neighborhood associations) opposing the development, while the “Coalition for a Better Times Square” (including some theater unions) supports it.
Two existing properties – Empire City Casino at Yonkers Raceway and Resorts World New York City – are widely considered frontrunners due to their established operations and ability to quickly expand existing facilities.
Economic Promises and Community Impacts
These casino developments promise substantial economic and architectural impacts on New York City. More than simple gaming floors, these projects represent comprehensive entertainment destinations featuring luxury hotels, signature restaurants, shopping, and performance venues. All bidders must pay the $500 million license fee, generating $1.5 billion in immediate revenue for New York State across the three licenses.
Resorts World’s Queens proposal exemplifies the economic arguments being made, projecting hundreds of millions in annual tax revenue beyond the initial license fee. The company emphasizes both immediate job creation and long-term economic benefits, including support for local businesses.
From an architectural perspective, the developments could introduce striking new structures to the city’s iconic skyline. The scale of investment—minimum requirements of $500 million but actual projections often exceeding several billion dollars—suggests transformative projects that would create distinctive landmarks.
Economically, successful casino projects would generate thousands of construction jobs followed by permanent positions across hospitality, security, food service, entertainment, and administrative roles. Tax revenues from gaming operations would provide significant funds for state and local governments, potentially supporting education, infrastructure, and other public services.
However, community responses remain mixed. The Times Square casino proposal illustrates the division, with Broadway business interests largely opposing the casino while some theater unions support it. The No Times Square Casino Coalition argues that a gambling facility would undermine decades of revitalization efforts that have transformed Times Square into a vibrant entertainment district.
Queens Community Board 10 Chair Betty Braton has expressed support for the Resorts World proposal, highlighting the company’s existing relationship with the borough.
The Extended Regulatory Timeline
The path to casino licensing has grown increasingly complex. Robert Williams, Executive Director of the New York State Gaming Commission, explained that multiple regulatory hurdles must be cleared before the state opens the 30-day window for formal bids.
Key steps in the process include:
- New York City zoning and land-use reviews, expected to consume most of 2024
- State environmental reviews running concurrently
- Approval from local “citizens advisory councils” for each proposal, unlikely before mid-2025
- Final review by the casino siting board, leading to licensing decisions in late 2025
Williams noted that the state hasn’t budgeted for receipt of casino license fees until the 2025-26 fiscal year, suggesting officials had anticipated this extended timeline despite earlier industry expectations.
The regulatory roadmap reflects New York’s attempt to balance economic development with community concerns, ensuring sufficient time for local input while establishing a framework for what state officials describe as “the best, most comprehensive plans for commercial casino development.”
As the process continues, the remaining 10 bidders must navigate this extended timeline while maintaining investor confidence and community support – challenges that ultimately proved too daunting for Saks Fifth Avenue’s casino ambitions.
A Short Look at New York’s Gambling Legislation
New York State has progressively expanded its gambling laws over the past decade, permitting activities such as state-run lotteries, horse racing, and the establishment of up to seven commercial casinos, in addition to tribal gaming operations. In 2022, the state legalized mobile sports betting, which has since generated nearly $58 billion in wagers . To address concerns about problem gambling, legislation enacted in 2024 mandates that all gambling and sports betting advertisements include warnings about potential addictive effects and provide a problem gambling hotline number. The New York State Gaming Commission also offers resources for individuals to self-exclude from gaming activities.
In 2025, Senator Joseph Addabbo introduced Senate Bill S2614, aiming to legalize and regulate online interactive gaming, including online casinos, crypto casinos and lottery games. The proposed legislation suggests a 30.5% tax on gross gaming revenue, prohibits operators from deducting promotional expenses, and allocates $25 million annually for casino workforce training. However, the bill’s passage faces challenges, as Assemblywoman Carrie Woerner, chair of the Assembly Racing and Wagering Committee, has expressed skepticism about its approval in 2025. Despite these hurdles, the push for online iGaming legislation reflects New York’s ongoing efforts to modernize its gambling framework while addressing regulatory and social considerations.
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