Vornado Realty Unlikely to Chase New York Casino Permit
Vornado Realty Trust (NYSE: VNO), i of the largest real demesne investiture trusts (REITs), isn’t likely to give tail to a New York City gambling casino license.
Vornado Chairman and CEO Steve Philip Roth commented to that burden on the REIT’s third-quarter earnings group discussion phone call on Tuesday. His remarks arrived well-nigh 10 months after reports surfaced that Vornado could follow mulling a site close President Madison Square Garden and Penn Station as a potency home for a gambling casino hotel.
It’s highly likely that we testament not follow the casino license,” said Philip Milton Roth in response to a oppugn from Evercore ISI analyst Steve Sakwa.
Vornado, already I of the largest commercial real estate owners inwards the city, could pass judgment the site currently tenanted by the Hotel Pennsylvania as a potentiality discern for a casino hotel. That hotel was late demolished as piece of a massive redevelopment programme for the Penn Station area. The REIT testament likely focusing its efforts on leasing come out that infinite for other commercial purposes.
Vornado First Big Name to Depart New House of York Casino Race
To date, Vornado is the 1st of the handsome names that antecedently stated an interest group inwards summons for a New House of York City-area cassino let to stem out of that contention — ane that’s ultra-competitive and defining upward to live dear(p) and time-consuming.
Roth didn’t explain wherefore Vornado is potential throwing inward the towel on a New House of York casino bid. But the electric current macroeconomic surround isn’t contributory to large, from-the-ground-up commercial-grade real land projects. High interest group rates have plenteousness of commercial tangible acres borrowers and creditors balking at the idea of young projects.
Additionally, Vornado hadn’t declared a partner for the effort, though rumors antecedently suggested the REIT could team up with billionaire moneyman Neil Gary Bluhm, who is a partner inwards middle west Gaming & Entertainment. He cofounded Illinois-based Rush Street Gaming, which operates a pair off of casinos in the Chicago suburbs, as easily as inward Philadelphia and Pittsburgh.
Other New House of York REITs remain occupied inwards the casino competition. For example, SL William Green is workings with Caesars Entertainment on a Times Square gaming bid, piece Related Cos. is teaming up with Wynn Resorts to take a casino hotel to another component part of Manhattan.
New York Casino Competition Still Long Way from Settled
While Vornado is potential out of the downstate cassino competition, the rush for the tercet licenses is far from settled. Some analysts believe that New House of York regulators won’t determine on the winning bidders until 2025, dousing hopes that such an declaration would make it inward 2024.
Further heightening intrigue inward the fourth-largest province is conjecture that, because of a malicious gossip and federal investigating involving a former executive, MGM Resorts International and Resorts World, operators of II slots-only venues inwards the New York City area, are no more yearner shoe-ins to win 2 of the trio licenses.
Recent gabble suggests Las Vegas Sands and Wynn Resorts are among the leading contenders for New York gambling casino permits.