Vornado Realty Seems Unlikely to Pursue New York Casino License
Vornado Realty Trust, a well-known real estate investment trust (REIT) on the NYSE, isn't expected to join the race for a New York City casino license. Steve Roth, Vornado's Chairman and CEO, made this clear on the REIT's third-quarter earnings call on Tuesday. This statement came about 10 months after Vornado was rumored to be considering a site near Madison Square Garden and Penn Station as a possible location for a casino hotel.
"It's highly likely that we will not pursue the casino license," Roth replied when asked by Evercore ISI analyst Steve Sakwa.
As a significant commercial real estate owner in the city, Vornado might think about the space previously occupied by the Hotel Pennsylvania as a potential site for a casino hotel. This hotel was recently demolished as part of a significant redevelopment plan for the Penn Station district. The REIT is likely to focus on leasing out this space for other commercial purposes.
Big Players Drop Out of New York Casino Bid
So far, Vornado is the first major player to pull out of the highly competitive and anticipated casino bidding war. Previously, many big names had expressed interest in this competition.
Roth didn't provide any reasons for Vornado's decision to step back from a New York casino bid. However, the current economic climate isn't suitable for large-scale, from-the-ground-up commercial real estate projects. High interest rates have left many business owners and lenders hesitant about starting new ventures.
Furthermore, Vornado hadn't announced a partner for the casino project. Earlier, rumors suggested Vornado could collaborate with billionaire financier Neil Gary Bluhm, who has a partnership in Midwest Gaming & Entertainment. He co-founded Rush Street Gaming, which manages casinos in the Chicago suburbs, Philadelphia, and Pittsburgh.
Other REITs Stay Involved in NY Casino Race
Despite Vornado's withdrawal, other New York REITs are holding on to their dreams of winning a casino permit. For instance, SL Green is working with Caesars Entertainment on a Times Square gaming proposal, while Related Cos. is partnering with Wynn Resorts to bring a casino hotel somewhere else in Manhattan.
Though Vornado may have left the New York casino competition, the contest for the three licenses is far from being decided. A few analysts think that the state's regulators won't announce the winning bidders until 2025, contrary to hopes that the announcement would arrive in 2024.
The situation is further complicated by speculation that MGM Resorts International and Resorts World, operators of two slots-only facilities in the New York City area, are no longer guaranteed to win two of the three licenses. Some experts suggest Las Vegas Sands and Wynn Resorts as leading contenders for New York casino permits.
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Source: www.casino.org
