Jay-Z Faces Stiff Opposition from Broadway League in the Times Square Casino Bid

Jay Z and Broadway League actors are all performers. But, they greatly differ in the casino bid for Times Square. Jay Z’s collaboration with Caesars Entertainment might end if he loses to the community’s opposition and the New York State Gaming Commission reviews it in January.

The Broadway League retweeted about this a few weeks ago, claiming that the state legislator, who is the Racing and Gaming Commission’s co-chair, believes this would be disastrous. They stated that a minority-led enterprise needs an opportunity to thrive in New York’s gambling industry.

State Assemblyman J. Gary Pretlow stated on Wednesday in an interview at Mount Vernon that Jay Z brings star power but it doesn’t affect Broadway. He has always advocated for minority groups’ involvement in the gaming sector.

The Current State of New York’s Casino Industry

Any investor interested in a downstate casino license can place a bid up to mid-January. The Gaming Commission will close the application window as each application has a $1 million fee that covers the applicant’s background checks.

Each proposed casino development region has a community board that has to approve an application before a gaming license is issued. Even so, this is a major hurdle for Steve Cohen (Met’s owner), Jay Z, and other celebrities with little influence on the community boards’ votes.

Even so, it is likely that over four individuals or organizations will pass each stage of the license application review process. It might cause another bidding round for one or all three licenses. Rumors claim that MGM Resort’s Empire City Casino in Yonkers and Genting Inc.’s Aqueduct Racetrack might bet two licenses

Empire City has harness racing and video lottery terminals (VLTs), while Aqueduct Racetrack has horse racing and VLTs. Thus, other interested parties will compete for the remaining license.

Are Other Entrepreneurs Interested in the Casino Bid?

The application period is active and more people are expressing their interest in building a casino at Times Square. Five more applications are likely to be submitted soon. But, Pretlow stated that they might increase to a dozen.

He added that each proposed site will undergo a time-consuming environmental review. Pretlow’s statement indicated that a bidding war might occur if someone claims they will pay 38 percent tax on gross revenue and an $800 million fee.

Still, each entity has to add the percentage of the gross revenue they will pay in taxes. One of the upstate gaming operators pays a 31 percent tax to New York.

The state’s law allows casinos to decide the amount of tax they will pay, unlike sportsbooks which must pay a 51 percent tax on their gross revenues. It includes bonus funds that new players get, thus making it the highest sports betting tax rate in the country.

Steven Ross, the Miami Dolphins owner, collaborated with Wynn Resorts and is seeking a casino license in Hudson Yards on the West Side. That are might have different community opposition despite being near Times Square as it is easily accessible on foot or through a subway.

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