Related Companies New York Casino Pitch Could Run $12B

Posted on: February 22, 2024, 10:40h. 

Last updated on: February 22, 2024, 11:16h.

Todd Shriber @etfgodfather Read More

Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Related Companies finally provided an update on its plans for a new $12 billion development, including a casino hotel, on the West Side of Manhattan.

The $12 billion price tag is well in excess of the $10 billion previously believed to be the potential tab for the project at Hudson Yards. In new plans filed with the New York City Planning Department, the developer would build three skyscrapers spanning 13 acres over West 30th and West 33rd streets. Wynn Resorts is the real estate developer’s gaming partner.

If Related and Wynn are successful in procuring one of the three downstate gaming licenses, which New York regulators could award later this year or in early 2025, the casino would be located at the northern end of the property.

How Wynn New York Casino Could Shape Up

Assuming a Wynn New York casino becomes a reality, it’s likely that one of the three towers that would be constructed by Related would bear the gaming company’s name. It’s also likely the gaming venue would be massive in size.

The casino would span 2.7 million square feet on the north side of the lot. It would stand 80 stories and 1,200 feet tall and house a 1,750-key hotel, a ballroom, conference space, retail space and restaurants. The casino would be at the bottom of the tower, spanning five floors,” reports The Real Deal.

That would make the venue larger than Wynn Las Vegas, which commands 2.5 million square feet. The operator’s Encore Boston Harbor, one of the highest-grossing domestic casinos outside of Las Vegas, encompasses three million square feet.

As is the case with seemingly all of the New York City-area casino pitches, there are issues on the road to success for Related. Not only are the politicians representing the Hudson Yards area in Albany not fully behind the plan, but the real estate firm would need approval from the city to move forward. That’s because it differs from the initial Hudson Yards redevelopment effort proposed in 2009.

No Casino, No Development

As The Real Deal reported, Related will ditch the development if it doesn’t win one of the downstate casino licenses. An alternative plan was included in the filing with the city. But that’s merely a procedural requirement and not something the company is bound to proceed with.

Assessing Related’s odds of success is difficult, and that goes for all of the roughly dozen entities bidding for New York City casino permits.

On the other hand, there’s been chatter that the Related/Wynn proposal is viewed as viable and a potential leader for one of the permits.