Vornado Realty Trust Is Reportedly Joining the New York Casino Race
According to a report in the New York Post, New York’s second-largest landlord is thinking about applying for a casino license at the site of the soon-to-be-demolished Pennsylvania Hotel near Madison Square Garden.
A closed hotel is included in a nine-block redevelopment project dubbed the “new” Penn Station proposed by New York State Governor Kathy Hochul. Vornado will develop five sites in the area where the buildings will be demolished, including the Pennsylvania Hotel.
Although Vornado has not named a partner for the project, the NY Post reported that a source had learned that chairman Steven Roth was in talks with Midwest gaming mogul and Walton Street Capital managing director Neil Gary Bluhm, who was also co-founder and chairman of Rush Street Gaming.
Vornado doesn’t have to choose a casino partner yet, but it may have to act quickly if it wants to get into the arms race. The first round of questions from potential casino bidders is due Feb. 3, although the application deadline has not yet been set. However, her competitors have already announced their partnership.
Vornado’s casino proposal will face competition from two existing gaming parlors in the state that have announced their intention to compete for a full casino license so they can offer a full Las Vegas-style experience.
Empire City Casino in Yonkers and Resorts World in Queens are considered the front-runners for two of the three casino licenses. This is because these gaming parlors are already in operation and would only need to add table games to become full casinos. Granting these casinos two of the three licenses would allow the state to generate additional tax revenue almost immediately.
Other casino proposals, including the potential Vornado proposal, would either be built from scratch or would require renovation and expansion of existing buildings. These projects would take months or even years to complete, and the state would have to wait sometime before receiving tax revenue.
In other news, MGM President thinks the Springfield Casino can’t get to 3,000 employees.
