Caesars Times Square Casino Rejected by Advisory Committee

• The $5.4 billion Times Square casino proposal didn’t receive the needed two-thirds vote to move on to state regulators
• Vote marks the end for Caesars Palace Times Square

Caesars Palace Times Square won’t come to life after a community advisory committee (CAC) rejected the $5.4 billion plan to bring a casino hotel to New York’s theater district.

A consortium comprised of Caesars Entertainment (NASDAQ: CZR), real estate developer SL Green (NYSE: SLG), and Roc Nation, the entertainment agency owned by hip-hop mogul Jay-Z, led the effort to bring a gaming venue to the Manhattan neighborhood, and while it garnered support among some business owners and labor leaders, it also drew significant dissent from community groups and some in the theater world.

This was a vote to protect the magic of Broadway for the one hundred thousand New Yorkers who depend on it for their livelihoods, and for the tens of millions who come from around the world to experience it,” said Broadway League President Jason Laks in a statement. “A casino can go anywhere, but Broadway only lives here.”

Shares of Caesars, which have recently scuffled, traded slightly higher in the wake of the vote, but SL Green was lower by 4.61% at this writing.

Endorsements Not Enough for Times Square Casino

Despite the support of some actors, the Rev. Al Sharpton, and pledges to make significant community investments, including $250 million for emergency medical services, healthcare, and public safety, backers of the Times Square casino saw the dream quashed.

Caesars, Roc Nation, and SL Green previously estimated that Caesars Palace Times Square will create 3,000 construction jobs and 3,800 permanent roles while generating $7 billion in direct tax receipts over its first 10 years in business.

The poll also indicated seniors and women — active voting groups — were among the demographics most opposed to the Times Square casino.

Big Names Falling Off in NYC Casino Race

The CAC’s rejection of the Times Square bid marks the exit of another big name from the New York City casino competition. Previously, Las Vegas Sands (NYSE: LVS) and Wynn Resorts (NASDAQ: WYNN) abandoned bids before advancing to the CAC process.

It’s rumored that those two operators, along with Genting, which runs Resorts World New York in Queens, are the leaders for the three downstate licenses expected to be awarded by the end of this year.