Bidders Bet NYC Casino Will Become World’s Biggest

With a pot this large, it’s no wonder we’re seeing so much action.

As details trickle in on bids for the three available New York City casino licenses, one thing is becoming clear: Just about every bidding player projects a massive payout on the other side of winning the regulatory green light, according to a Bloomberg report on Tuesday.

Flush Draw

Applications for a casino license were due to the New York State Gaming Facility Location Board last week, and the process was a doozy. According to a New York Times report, paperwork from one of the eight bidders — including everything from bank references to tax returns — ran more than 50,000 pages (for the sake of the trees, we hope it was submitted as a PDF). The bids also included proposals for locations across the entire city: One group backed by Mets-owner Steve Cohen wants to build a casino next to Citi Field in Queens, Bally’s has a bid for a casino at Ferry Point in the Bronx, another group wants a casino on Coney Island and Caesars is pushing for one in Times Square.

Bidders are projecting substantial winnings, regardless of location, though (unsurprisingly), Manhattan could yield the largest score. For now, bidders will be counting their chips until the Gaming Board makes a final call in December:

• One bid for a location in Manhattan’s Freedom Plaza projects $2.2 billion in revenue in its first year of operation, which would rise to $4.2 billion annually in a decade. Caesars, which promises an opportunity for “historic tax revenue,” projects $23.3 billion in gambling revenue alone over 10 years.
• A study by consultants at Spectrum Gaming Group found that a Manhattan casino could generate $2.1 billion per year in gambling revenue, higher than in other boroughs. Cohen’s group, however, projects $3.9 billion in annual revenue within three years in Queens.

Coin Flip: If the lofty projections are achieved, it would place a hypothetical New York casino among the most lucrative resorts in the world. However, Bloomberg notes that Bally’s failed to meet its lofty projections when opening its “temporary” casino in Chicago two years ago (a permanent location is under construction and is slated to open next year). Meanwhile, data from the Office of the New York State Comptroller shows that four casinos in upstate New York have similarly missed revenue projections. As seasoned poker players know, it’s best never to count your money when you’re sitting at the table.