Bloomberg Business of Sports: Progress on NYC Casinos (Podcast)

Bidders for three New York City-area casino licenses are projecting significant revenues, with Manhattan's Freedom Plaza forecasting $2.2 billion in annual revenue in its first year, rising to $4.2 billion by year 10, and Steve Cohen's Queens project near Citi Field expecting $3.9 billion annually by year three. These projections, submitted to the New York State Gaming Facility Location Board, position the proposed resorts among the most lucrative globally, signaling substantial investment opportunities and progress in the region's gaming sector.

Analysis

Projections submitted by bidders for three New York City-area casino licenses indicate the potential for a new, highly lucrative gaming market. The proposals detail significant revenue forecasts, with the Freedom Plaza project in Manhattan projecting $2.2 billion in its first year and growing to $4.2 billion by year ten, while Steve Cohen's Queens-based project anticipates reaching $3.9 billion in annual revenue by its third year. These figures, filed with the New York State Gaming Facility Location Board, suggest that if realized, these resorts would rank among the most profitable globally. This development signals a major expansion of the US gaming and leisure industry into a dense, high-income metropolitan area, representing a substantial potential windfall for the eventual license holders and a significant shift in the regional entertainment landscape.

Key Decisions for Investors

• Investors should closely monitor the New York State Gaming Facility Location Board's proceedings, as the final selection of license winners will be the primary catalyst determining which entities will capitalize on this opportunity.
• Consider identifying potential exposure through publicly traded gaming operators, real estate investment trusts (REITs), and construction firms that are either bidding directly or are likely to be involved as partners or suppliers.
• While the revenue forecasts are strong, these are bidder-supplied projections and should be discounted for execution risk, potential regulatory delays, and the competitive landscape that will emerge once the casinos are operational.