Saks Fifth Avenue Parent No Longer Interested in New York Casino
Saks Fifth Avenue's parent company, Hudson's Bay Company, has officially withdrawn its proposal to develop a casino atop its iconic Midtown Manhattan department store. This marks the first official exit from the competitive race for one of three downstate New York casino licenses to be issued later this year.
LISTEN TO THIS ARTICLE:Hudson's Bay's decision to pull out comes after months of limited communication with officials involved in the casino bidding process. The company's plan had proposed transforming the top three floors of its 10-story landmark building into a high-end casino facility.
Related: Casino Next to New York's Citi Field Gets Local ApprovalThe proposed gaming space, estimated at approximately 200,000 square feet, was envisioned as a stylish, retro-themed venue that would include a rooftop terrace and an upscale design. The flagship building, located directly across from St. Patrick's Cathedral, presents architectural and regulatory challenges due to its landmark status, making any significant renovations potentially difficult to approve and execute.
The company's withdrawal is likely a recognition of the substantial obstacles it faced, both politically and logistically. Local opposition in the Midtown district has been consistent, with the area's community board opposing casino development and elected officials expressing skepticism. These factors, coupled with the complexities of altering a protected historic structure, cast doubt on the feasibility of the project from the outset.
While Hudson's Bay had argued that its casino could be operational within a year — significantly faster than most other proposals except for the two existing racetrack casinos in Queens and Yonkers — the relatively small scale of the project may have placed it at a disadvantage. The state's evaluation process includes consideration of each bid's potential economic impact, and larger proposals with more expansive development plans are expected to hold an edge in that category.
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Hudson's Bay Interest Wanes Quickly Before Exit
Hudson's Bay had enlisted lobbyists from the law firm Cozen O'Connor to advocate for the project among local and state officials. However, the company terminated its contract with the lobbying firm in July 2024. Unlike many of the other applicants vying for a license, Hudson's Bay had not announced a partnership with an established gaming operator, which may have further limited the perceived viability of its proposal.
The official bidding process is approaching a key milestone, as applicants must submit their proposals by June 27. Each application will be subject to binding votes from six-member community advisory committees composed of local representatives. Following that step, a final decision will be made by a five-person state board, with final license awards expected before December 1.
Hudson's Bay is the first serious contender to withdraw since Vornado Realty Trust ended its pursuit of a casino project at the former Hotel Pennsylvania site in 2023. Vornado's concept had not advanced beyond preliminary discussions and showed limited public activity before being shelved. With Hudson's Bay exiting the race, ten known contenders remain for the three available licenses.
These contenders span several boroughs and surrounding areas, including proposals in Manhattan, Queens, Brooklyn, the Bronx, Westchester County and Nassau County. The licenses are anticipated to generate significant revenue due to the scale of the New York City gaming market.
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