No Casino in Manhattan, but Atlantic City Still Threatened by New York Downstate Licenses

^{Atlantic City’s Boardwalk bustles with summer crowds, but casino owners are sweating the arrival of three new competitors in downstate New York. (Photo: Mahmoud Masad)}

Following the rejection of the proposed Mohegan Sun resort near the United Nations headquarters, there will be no casino in Manhattan in the near future. The Freedom Plaza project, which included hotels, retail, dining, and apartments, was denied by a 4-2 state-committee advisory board on Monday. The $11 billion Midtown East project, sitting on more than six acres between 30th and 41st streets, was the last remaining proposal under consideration for a casino in Manhattan. However, the casino battle that has been brewing between New York and New Jersey is far from over.  

New Jersey’s land-based casino industry has been slowly losing its footing on the East Coast. Since Atlantic City’s first casino, Resorts International, opened its doors in 1978, the city has become, at some point, a gambling hub, being more accessible to East Coast gamblers. However, foot traffic in Atlantic City casinos has been declining steadily with the arrival of new casinos in neighboring states, including Pennsylvania, Delaware, and New York.

New York’s growing gaming industry hasn’t surprised many, as the Empire State already has four commercial casinos. In August, the sector hit its highest grossing revenue of the year, reporting a 4.7% year-on-year increase, with revenue rising from $62.1 million to $65 million. 

Atlantic City Casinos Riding High

Yet, compared to Atlantic City, which recorded its highest summer revenue in 10 years, New York’s $65 million is relatively minor. Over the same period, according to figures published by the New Jersey Department of Gaming Enforcement, Atlantic City casinos generated revenues of $311.9 million, up 6.1% from the previous year’s figure of $294 million. 

On top of a successful month, New Jersey Casino Control Commission Chairman James Plousis noted that casinos in Atlantic City were “back on track.” He said, “Competitive gaming options and first-class in-person experiences provided a memorable summer in Atlantic City and it is well-positioned for continued momentum in the fall season.”

Threat from Across the Hudson River

Despite an optimistic month for New Jersey’s casinos, the threat that New York phases still looms. The state is currently deciding on three downstate licenses, which will be given to three out of eight bidding candidates. The state’s Gaming Commission will determine the winners, with each casino given a Community Advisory Committee (CAC), which will vote on whether the casino will proceed. 

Each CAC must decide by September 30, and licenses are expected to be handed out by December 1. 

New York Casinos Set to Compete with New Jersey 

New York has always appeared to threaten the Garden State. Even 30 years ago, when Donald Trump owned three casinos in Atlantic City, the now-second-time president warned that New York had the potential to take away revenue from New Jersey. 

New Jersey’s Governor Phil Murphy, speaking during a Fireside Chat hosted by the Chamber of Commerce Southern New Jersey in August, called New York’s license race a “big concern” for New Jersey’s casino industry, especially concerning the possibility that a license be awarded to a developer in Manhattan. 

However, the governor alluded to the idea that New York may fumble its casino launch, adding, “You’ve seen that in legalization of weed in New York, which has been really challenging, versus what has been deemed nationally - whether you like it or not - a success in New Jersey. And I'd say similarly, the drama around casinos in New York has been quite pitched,” he said during the conference.

However, what is stated in documents submitted by New York casino developers also presents a problem for Atlantic City. Various developers tout plans to take tourists from Atlantic City. Additionally, the two Manhattan casinos, Caesars Palace Times Square and the Avenir, noted how easy it would be to reach people across the Hudson through ferries, buses, and trains. 

On page 18 of their document, Coney Island casino developers said they plan to capture tourism from the surrounding states, including “New Jersey, Connecticut, Pennsylvania, and beyond.” Freedom Plaza, which is also planned for Manhattan, near the United Nations headquarters, noted in the third page of their own document that New Jersey’s close “proximity” to Manhattan made its casino proposal a “convenient choice for visitors.” 

Will New Jersey Fight Back?

The big question now is just how far New Jersey will be affected by New York’s downstate casinos. The Garden State hasn’t exactly been sitting idly. During his Atlantic City conference, Governor Murphy stated that the casino destination had undergone new treatments in recent years to make it more “compelling” to visitors, including boardwalk renovations, public safety initiatives, diversification of the industry, and more. 

In May, Senator Paul Sarlo and Senator Vin Gopal introduced legislation that would create a constitutional ballot question on whether or not Meadowlands and Monmouth Park would be turned into racinos as a way to counter New York’s push for three new casinos. 

Despite New Jersey lawmakers emphasizing the threat that Manhattan casinos could pose, New York also doesn’t appear keen on licensing these casinos. So far, only two downstate bids have been given a resounding no. Both Caesars Times Square and the Avenir are no longer going ahead, leaving only Freedom Plaza as the last remaining Manhattan casino. 

In an interview with , New York State Senator Brad Holyman-Sigal even said he was against any casino in Manhattan. "If you want a casino in Manhattan, don't vote for Brad Hoylman-Sigal," he told the broadcaster. 

Although New Jersey casinos had a successful August in terms of revenue, only time will tell how far New York’s downstate casinos will really impact Atlantic City.