Summary
- Wynn Resorts has withdrawn from the fiercely competitive bidding process for one of New York's three new casino licenses.
- The gaming and hospitality company stated that it has identified more efficient methods for managing its capital.
- With Wynn Resorts having exited, New York continues to have several strong contenders, and BetMGM has emerged as a leading favorite.
In New York, three casino licenses are up for grabs, attracting interest from gaming and hospitality giants, private investors, and more, all vying for the opportunity to construct a new downtown casino. While over a dozen serious contenders have entered the competition, Wynn Resorts has recently withdrawn from the race.
Wynn Resorts opts out of New York casino race
Wynn Resorts has stated its intention to use funds for repurchasing stock and financing future initiatives: The recent rezoning process has highlighted that there are more beneficial ways to utilize our capital for shareholders, such as investing in our existing and forthcoming developments and stock buybacks, rather than investing in a location where we, or any casino operator, would encounter years of persistent opposition, despite our willingness to employ 5,000 New Yorkers. In a statement, the Nevada-based company explained that it had identified more effective methods to allocate its capital to ensure business sustainability and maximize economic value, by expanding its established presence and momentum. Initially, Wynn Resorts, in collaboration with Related Companies, planned to construct a luxury casino resort in the high-end Hudson Yards area of Manhattan. However, the company has had a change of strategy, choosing to concentrate on Asia and other parts of North America. This includes its forthcoming Wynn Al-Marjan Island casino resort in Ras Al Khaimah, anticipated to open in 2027. This withdrawal is unsurprising, as Las Vegas Sands, another major player in the gambling industry, also announced its exit from the competition during an earnings call last month.
iGaming is one of the risk factors for downtown casinos
Similar to Wynn Resorts, Las Vegas Sands has stated that committing to such an investment would not have been the most prudent decision for the company. Additionally, a recurring concern in board discussions is the potential introduction of online casinos in New York State, often referred to as iGaming. Online casinos are currently the leading source of gambling revenue from internet betting. Companies seeking licenses to develop multi-billion dollar land-based properties have previously highlighted these concerns.
