The gaming operator explained that this is due to the recent rezoning process, which made it clear that there were better uses for its capital
Wynn Resorts has taken a step back, deciding to give up on its plans for a New York casino. The casino and hospitality giant will therefore drop from the race for one of the three downstate New York gaming licenses.
Wynn’s Project Had Recently Secured a Major Approval
A few weeks ago, Wynn Resorts secured an important approval from the City Planning Commission, allowing it to proceed with its Hudson Yards West project. The project, which is the brainchild of Wynn and Related Companies, would have redeveloped the Hudson Yards West property, adding a casino and thousands of housing units.
Supporters of the project claimed that it would be an important economic stimulus to the area and that it would generate thousands of jobs. There were also those who disagreed with the project, arguing that it would harm the area, depriving the High Line of sunlight, hurting smaller businesses and potentially exposing locals to harm.
Despite the opposition, it seemed that the project was gaining momentum, at least until Wynn Resorts decided to exit the race for one of the three licenses.
Wynn Exits the License Race
On May 19, Wynn Resorts released an official statement on the matter, confirming that it will no longer seek a gaming license in New York City. The gaming operator explained that this is due to the recent rezoning process, which made it clear that there were better uses for its capital.
According to Wynn Resorts, better initiatives include investment in existing and upcoming developments and share buybacks, both of which would generate significant shareholder value.
The statement also cited the fierce opposition from the locals, which could hurt the operation of a casino in the area, despite Wynn’s willingness to employ thousands of locals. For context, the project would have created some 5,000 jobs.
Wynn Resorts concluded:
We sincerely thank those who have supported our efforts, including our partners at Related Companies, and continue to believe that their proposed Hudson Yards West development is an outstanding opportunity for New York City.
Wynn Resorts statement
Las Vegas Sale Could Bolster Wynn’s Presence
In other news, Wynn Resorts could potentially boost its presence elsewhere. According to Dan Wasiolek, a Morningstar analyst, Wynn should consider selling an unused plot of land on the Las Vegas Strip. According to Wasiolek, the proceeds of the sale would allow the company to explore lucrative opportunities abroad.
Wasiolek argued that Las Vegas casinos face tough competition and do not always generate sufficient returns. On the contrary, investing in a foreign market could set Wynn up for success.
