Proposed Casino in NYC's Midtown East is Torpedoed by Advisory Committee

The future of a potential Manhattan casino is now in doubt following the rejection of a plan near the United Nations in Midtown East.

On Tuesday, a community advisory committee sunk a proposed plan for the so-called Freedom Plaza Casino project, which was backed by Mohegan, a major developer of gaming facilities in the United States.

With this latest rejection, there are no more proposals in the works for a casino in New York City. Earlier this month, separate committees rejected plans for a casino in Times Square and the Hell's Kitchen neighborhood.

City seeking tax revenue from casinos

In spite of the prospects for many jobs in the city, civic organizations have lined up in opposition to legal gaming in Manhattan. The state has as many as two licenses it can grant to casino gaming facilities in the boroughs.

Leaders in Brooklyn and Coney Island have also been unable to come together on plans for casinos in those sections of New York city. Supporters are excited at the prospects of the thousands of possible jobs and millions that a NYC-based casino could attract.

New York City has been in a financial bind in recent years, which is one reason lawmakers at the state and city levels approved gaming licenses and called for proposals. But even with much-needed tax dollars at stake, outspoken community leaders and citizens have blocked new gaming there.

The proposal was backed by the Soloviev Group, others

In addition to Mohegan, which would have operated the Freedom Plaza Casino, the project was supported by Soloviev Group and Banyan Group, two large development and property firms with a history of resort and gaming ventures.

"We are proud of our partnership with Mohegan and the vision that informed this project that would have revitalized Midtown East and delivered for workers, residents, and organizations across this city," said Michael Hershman, Soloviev Group Chief Executive Officer. "Manhattan is the undisputed capital of the world, and it deserves a fully integrated resort that would have attracted visitors while serving the needs of its community," he added.

Later this week, a project for a casino in Queens will be presented to a planning committee. Another gaming facility proposed in Yonkers will also be placed before an advisory panel.

Even with New York having the possibility of granting licenses to gaming operators, the search for a location that pleases developers, lawmakers, planners, and the community seems daunting.

New York's sports betting market is one of the most burgeoning in the country, thanks in large part to the high tax rate the state places on operators. But, no commercial casinos are within a convenient distance of New York City. Currently, the state does not have retail sports betting locations in the city. New York has also not yet legalized online casinos.