Saks Fifth Avenue Abandons Casino Project in Midtown NYC

A total of 11 companies showed interest in securing one of the three lucrative New York downstate casino licenses. Now, the number of likely bidders has gone down, as reportedly one company decided to drop from the process and no longer pursues securing a license.

Midtown Casino License Bidder Drops from Race

Saks Global, the business that owns Saks Fifth Avenue in Midtown, had previously uncovered details regarding their potential plans to develop a casino on the top floors of their department store.

Unlike other likely bidders, with the exception of Empire City and Resorts World, which have proposed a redevelopment rather than a new building, Saks Global claimed that their casino would be operational in a year.

Their proposal sought to use the top three floors of their Saks Fifth Avenue building, converting them into a casino with approximately 200,000 square feet of space. However, Saks Global faced opposition from local community boards and further difficulties related to the redevelopment of parts of the building that is recognized for its historic heritage.

Now, a newly released report suggests that Saks Global has become the first major operator to drop out of the race for one of the three coveted casino licenses. As announced by the media outlet, Crain’s, a spokesperson for Saks Global, confirmed they are no longer participating in the race for a license.

In the words of the spokesperson, Nicole Schoenberg: “At this time, the company is no longer pursuing a downstate New York gaming license and is focused on other strategic priorities. Confirmation about Saks Global decision came Thursday. Their decision to drop out of the race now leaves a total of 10 likely bidders that would compete for one out of the three casino licenses.

A Range of Factors Likely Affected Saks Global Company’s Decision

The spokesperson did not confirm the precise reason for Saks Global’s decision to drop from the race. However, it is likely that local pushbacks from community boards, as well as complications surrounding the redevelopment of the historic building’s top floors may have affected the company’s decision.

Another important factor that was likely considered is the minimum investment of $500 million, required for casino bidders, as well as the license fees that would also be in the realm of $500 million. This otherwise means that a smaller venue may have a lower chance of competing and succeeding.

Moreover, other likely bidders are proposing significant investment in local communities, infrastructure and other community-focused benefits, all factors that may ultimately tip the scale in their favor. The three casino licenses are expected to be awarded by the end of this year.