A New York committee has shut down plans for Caesars Palace’s proposed Times Square casino.
Backed by the hip hop star Jay-Z, Caesars was proposing a $5.4bn plan to redevelop a Broadway office tower in a bid to secure one of three casino licences on offer by the New York Gaming Commission.
However, after a public hearing featuring opinions from stakeholders within the theatre industry and the wider Broadway business economy, a community advisory committee rejected Caesars’ plans in a vote.
This sparked outrage from Marc Holliday, the CEO of developer SL Green, reports ABC News.
“This was a despicable display of cowardice, a complete lack of consideration for all the people who would benefit from this,” Holliday shouted at committee members as they left the hearing. “Go run and hide.”
Those against the plans argued that an influx of gambling tourists would hurt the theatre district.
Caesars Palace was one of eight bidders seeking to gain one of the three licences made available by the New York Gaming Commission.
Each successful applicant will be required to invest a minimum of $1bn for the licence fee and capital investment, with $500m payable within 30 days as the licence fee.
In plans set out by Caesars, it projected that the Times Square project would generate over $7bn in taxes and fees for the city and state in its first ten years of operation, and drive over $26.7bn in new revenue to neighbouring businesses.
The company also expected to create over 3,800 permanent jobs and over 3,000 construction jobs.
Speaking earlier this month, Jay-Z, whose entertainment company Roc Nation had partnered with Caesars and SL Green for the bid, said that the casino would complement rather than compete with Times Square, and draw even more people to the neighbourhood.
“Casino visitors will buy tickets, fill seats, book dinners before shows, and keep hotels in the area full,” the Brooklyn-native added.
However, detractors, including the musician and actor Joanne Borts, asserted that “casinos lock people inside” and don’t put people on the street.
Caesars was competing against the likes of Bally’s, MGM Resorts, the Mohegan Tribal Gaming Authority and Genting to receive a licence.
Applicants have until the end of September to gain the approval of their community advisory committee and secure relevant zoning approval.
Once projects have received approval, the Gaming Facility Location Board will assess the applications. Three projects will then be selected by 1 December, followed by Commission licensure to ensure the state collects the proposed casino licence fee ahead of schedule.
Casino permits will be granted for a period of between 10 and 30 years, depending on the size of the investment pledged.
