Owner of the New York Mets, Steve Cohen is looking to launch a casino next to Citi Field in Queens. For the project, the billionaire has partnered up with Hard Rock International, and the two will submit a proposal for one of the available downstate casino licenses. The project is estimated to be worth US$8 billion and it would replace a 50-acre parking lot.
Mr. Cohen’s net worth is estimated to be over US$19.8 billion and he will be competing with more than 10 other applicants for a full-scale commercial license in downstate New York. Initially, the licenses were on schedule to be issued by the end of 2023 or early 2024. However, experts are worried that the state could slow down the process to 2025.
Presenting Metropolitan Park
On top of severe competition, Mr. Cohen and Hard Rock would have to overcome several other challenges to acquire a license to develop and launch the US$8-billion casino plan titled the Metropolitan Park. One of those would be to acquire the approval for the annexation of its land due to its proposed site being state-owned property.
However, in order for that to occur Empire State legislature would be required to pass a bill for the land to be relinquished. It should be mentioned that in 2022, a similar legislation was presented but it is yet to receive approval from lawmakers. The billionaire would also need approval from local elected officials to move along with the project, as well as a Yes from the New York gaming board.
Another obstacle for the project is the state’s requirement of a background disclosure form, as with it, applicants demonstrate integrity, honesty, good character and reputation. However, it was previously reported that the billionaire’s hedge fund SAC Capital had to pay a U$1.8 billion penalty after pleading guilty to wire fraud and securities fraud.
According to Mr. Cohen, Metropolitan Park would generate around US$130 billion in economic impact on the state in the next 30 years. It would also create over 10,000 jobs. Meanwhile, reports from Spectrum Gaming claim that if it comes to fruition, the resort would provide approximately US$1.9 billion in revenue for the state every year.
Latest on the Downstate Candidates
As mentioned, there are plenty of other candidates, including Las Vegas Sands, Caesars Entertainment which partnered with Roc Nation and SL Green, Thor Equities, Soloviev Group and others. The latter recently announced that if selected for a license it would build 1,325 apartments with around 40% of them below market-rent rates, as a way of gaining local backing.
Meanwhile, there are also others who are most likely out of the race for a casino license in southern New York. It was reported that Varnado Trust has decided not to pursue a license. In a recent earnings call, Steven Roth said it is unlikely that the company will proceed and said that one of the reasons was that these days financing is becoming increasingly difficult to find.
Source: Byers, Justin “New York Mets Owner Partners with Hard Rock for $8B Casino” Covers, November 7, 2023
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