There will be no casino in Manhattan after all proposals are rejected by locals

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NEW YORK (AP) — Plans to build the Big Apple’s first full-service casino in the heart of the city have run out of luck.

A local panel on Monday rejected the last of three Manhattan proposals that had been among those vying for a new state license to operate a Las Vegas-style casino in the lucrative New York City market.

The proposal — a six-acre project near the United Nations headquarters dubbed “Freedom Plaza” and operated by Mohegan, the gaming company run by Connecticut’s Mohegan Tribe — was denied by a state-commissioned community advisory committee on a 4-2 vote.

A Jay-Z-backed plan to build a Caesars Palace casino in Times Square and another proposal for a gambling resort on Manhattan’s West Side in the Hudson Yards area were both voted down by two other local boards last week amid local opposition.

As in those votes, committee members in Monday's decision appointed by Gov. Kathy Hochul and Mayor Eric Adams were in favor of the Freedom Plaza project, but panel members representing local lawmakers said no.

“To be clear, this is not simply a rejection of a new casino in Manhattan — it is a rejection of new housing, new schools, billions of dollars in investment, and more for the borough,” said William Fowler, an Adams spokesperson.

The other local politicians, all Democrats like Hochul and Adams, said in a statement that residents voiced concerns during public hearings about the development's impact on congestion and public safety in the area.

Michael Hershman, CEO of the Soloviev Group, which was the lead developer on the more than $11 billion project, said Manhattan — the “undisputed capital of the world” — deserved the resort, which “would have attracted visitors while serving the needs of its community.”

Ray Pineault, CEO of Mohegan, argued the review process “did not allow for a recognition of the impact we could have had on the broader community of New York and the many individuals who would have benefited from new jobs, housing, and community benefits.”

Five proposals still remain in the race for up to three gaming licenses.

Among them is a proposed Bally’s casino on a Bronx public golf course once run by President Donald Trump’s company, a gambling hall envisioned for Coney Island’s iconic boardwalk in Brooklyn, and a Hard Rock casino proposed next to Citi Field in Queens, where the New York Mets play.

Two “racinos” — slot parlors built alongside horse racing tracks — that are already located in Yonkers and in Queens are also seeking a license to become full-fledged casinos with live table games such as blackjack and poker.

Local board approval is required for proposals to advance to the next stage in the competition. State gambling regulators expect to make their final decision in December.

Adams, who is running for reelection as an independent, has expressed surprise at the early demise of the some of the more high profile projects.

“Casinos can bring jobs. It can bring stability, tourism,” he said in a television interview ahead of Monday’s vote. “So, I was surprised at some of the negative votes. Let the final process make the decision. We should not be stopping them at this local level.”

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Associated Press reporter Anthony Izaguirre in Albany contributed to this story.

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Follow Philip Marcelo at https://x.com/philmarcelo