Times Square casino bid gains edge as rivals drop out, says SL Green

Manhattan-based office landlord SL Green believes its chances of securing a coveted casino license for Times Square have significantly improved following the recent withdrawal of major competitors.

Speaking at an investor event last week, SL Green Chief Financial Officer Matt DiLiberto said the company’s odds of winning one of the state’s three downstate casino licenses are now “dramatically better and pretty good.” That's according to a summary of the conversation shared by event host Bank of Montreal, as reported by Crain’s New York Business.

The company is partnering with Caesars Entertainment and Roc Nation to develop a casino and a 50-story hotel at 1515 Broadway — a 57-story, 1.7 million-square-foot tower currently anchored by Paramount Global. The proposed site is located at the intersection of Broadway and West 45th Street, in the heart of Times Square.

SL Green believes its prospects improved after Related Companies, a prominent rival, withdrew its proposal to build a casino in Hudson Yards last month amid growing community opposition. Other competitors have also exited the race in recent months, including the owner of Saks Fifth Avenue, who abandoned a plan to build atop its Midtown flagship, and Las Vegas Sands, which dropped its Nassau County project.

To move forward, SL Green needs approval from four of six members of a local board. Those members are appointed by Governor Kathy Hochul, Mayor Eric Adams, Borough President Mark Levine, State Senator Liz Krueger, Assemblymember Tony Simone, and Councilmember Erik Bottcher.

While Hochul, Adams, and Levine are seen as supportive of the Times Square proposal, Krueger remains opposed. A spokesperson for the senator confirmed she is still “not a fan” of a casino in the area. Simone and Bottcher have not publicly stated their positions on the Times Square bid, but both previously withheld support for the Hudson Yards project.

Despite the political hurdles and opposition from some Midtown business groups, SL Green is pushing ahead, buoyed by what it sees as a prime location and strong local economic indicators.

In a client note on Friday, Bank of Montreal real estate analyst John Kim said the site is already zoned for redevelopment and could be among the quickest projects to break ground. He added that the plan could serve as a catalyst for revitalizing Times Square.

The entertainment district continues to show signs of resilience. According to the Broadway League, Broadway shows grossed $1.9 billion during the most recent season — a 3% increase over the previous record set in 2018-19. Hotel occupancy in Times Square averaged 86% so far in 2024, up from 84% in 2023, though still short of the 92% average seen in 2018, according to the Times Square Alliance.

“We have always been confident that Times Square is the best place for a world-class hotel, gaming and entertainment destination, and that our bid uniquely generates benefits for the surrounding community and the entire city,” said DiLiberto.

Casino license bids are due June 27. State regulators are expected to take several months to review submissions and announce the winners. SL Green will compete with other well-financed contenders, including Mets owner Steve Cohen, MGM Resorts, and Malaysia-based gaming giant Genting.