Wynn Resorts bows out of New York downtown casino race

• A highly contested bidding process for one of three new casino licenses in New York has seen Wynn Resorts withdraw
• The gaming and hospitality company announced that it had decided on more effective ways to manage its capital
• New York still has plenty of contenders, with BetMGM emerging as a favorite following Wynn Resorts’ own withdrawal

Three licenses are due to be awarded in New York, as gaming and hospitality giants, private investors, and others are trying to secure the right to build the next downtown casino in the city. There have been more than a dozen serious applicants, with Wynn Resorts now dropping out of the race.

Wynn Resorts opts out of New York casino race

Wynn Resorts has cited that it intends to use the money to repurchase stock as well as help fund future projects:

"The recent rezoning process has made it clear to us that there are uses for our capital more accretive to our shareholders, such as investment in our existing and upcoming developments and stock buybacks, than investing in an area in which we, or any casino operator, will face years of persistent opposition despite our willingness to employ 5,000 New Yorkers."

In a statement, the Nevada-based company said that it had found better ways to spend its capital to ensure business sustainability and garner economic value, building on its footprint and momentum. Originally, Wynn Resorts, having teamed up with Related Companies, was looking to build a luxury casino resort in Manhattan’s high-end area Hudson Yards.

However, the company has reconsidered, with Wynn Resorts focusing on Asia and elsewhere in North America, including its upcoming Wynn Al-Marjan Island casino resort in Ras Al Khaimah, due to open in 2027.

The withdrawal is not at all surprising, as Las Vegas Sands, another gambling major, announced that it would also be dropping out of the race during the earnings call last month.

iGaming is one of the risk factors for downtown casinos

Much like Wynn Resorts, Las Vegas Sands explained that tying itself down in an investment like that would not have been the best course of action for the firm.

Another worry that keeps creeping up in board discussions is the potential arrival of online casinos to the Empire State, known as iGaming.

Online casinos are by far the biggest driver of gambling revenue when it comes to Internet wagering, and land-based firms that are applying for a license to develop multi-billion dollar properties have cited such concerns in the past.

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