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Barely days after Manhantan was confirmed out of the race for casino licenses, hopes for Brooklyn’s Coney Island project are dimming. This week, community advisory committees (CACs) voted against all three Manhattan proposals, Caesars Times Square, Avenir, and Freedom Plaza, each receiving 2-4 votes without much discussion.
Now, the spotlight shifts to Brooklyn, where the Coney Island bid, backed by Thor Equities and other partners, is in jeopardy. On Monday, two members of the CAC evaluating this proposal announced their intention to vote against it.
Although an official vote has not yet been scheduled, the looming deadline of September 30 adds urgency to the situation.
“The Coney has failed to prove itself as a public good”
Brooklyn Borough President Antonio Reynoso and state Senator Jessica Scarcella-Spanton, both members of The Coney Island community advisory committee, have publicly announced their plans to vote against the casino project when the time comes.
Their opposition aligns with concerns voiced by another committee member. “The Coney has failed to prove itself as a public good,” Reynoso stated in an interview with the Brooklyn Eagle. “The proposal is deeply unimpressive and unresponsive to the needs, desires and rich history of the Coney Island community. Quite simply, it will not improve conditions for the Brooklynites who call Coney Island home.”
Adding to the criticism, Scarcella-Spanton remarked that the project “would not be suitable for the proposed location.”
The Coney is one of five bids still in the running for the three downstate casino licenses, which are set to be awarded by the end of the year. However, all proposals, including The Coney, must first gain approval from their local CACs to move forward for state consideration.
Potential rejection not surprising
The proposal for The Coney, backed by Thor, the Chickasaw Nation, Saratoga Casino Holdings, and Legends Hospitality, aimed to create a $3.4 billion development intended to transform Coney Island into a year-round destination.
The ambitious plans included a mixed-use complex featuring a casino, hotel, entertainment venue, and more, designed to shift the area away from its seasonal focus.
However, even before local officials expressed their rejections, the Coney faced significant challenges in gaining approval. Each CAC is responsible for determining the level of public support for a project, which involves evaluating feedback from public hearings and an online comment portal. Unfortunately for The Coney, it received the least favorable reception among the eight proposals considered at this stage.
The initial public hearings were marked by chaos, with residents expressing their discontent vocally. The atmosphere was so contentious that shouting matches broke out, forcing police interventions and high-level opposition. It also showed how almost impossible it was for an independent board to vote for the proposal.
Tough from the start for Coney Island
The challenges for The Coney began well before any formal votes were cast. The CAC appeared to lack neutrality, which was evident from the outset. Marissa Solomon, a local resident and outspoken opponent of the proposal, was appointed to the CAC by Assemblymember Alec Brook-Krasny, who also opposed the project.
During The Coney’s initial presentation, Solomon did not hold back any criticism, and many local residents rallied around her, urging the rest of the committee to express their disapproval as well.
With the recent announcements from Reynoso and Scarcella-Spanton regarding their opposition, the outlook for The Coney grew even dimmer. In a statement shared on X, Brook-Krasny hinted that the proposal would fail since 4 votes out of six were needed.
“Today’s news indicates three ‘NO’ determinations on the proposed Coney Island casino development,” he said. “From the outset, my office maintained that this project was not a fit for our neighborhood.”
MGM Empire City and Resorts World still frontrunners
Now that The Coney is likely out of the running, today marks a crucial day in the CAC process. Both MGM Empire City and Resorts World NYC, the two ‘racino’ proposals, are scheduled for votes.
From the beginning, these two projects have stood out as frontrunners. Their advantage lies in their quick market entry compared to new ground-up developments, as well as their significant tax contributions and established ties with the community.
Despite the recent rejections faced by others, Resorts World has a strong reason to be optimistic. Its public hearings received unanimous support, and it aims to launch its casino by July 2026, which is a full year earlier than MGM’s timeline.
MGM also maintains a hopeful outlook, although it encountered some pushback from local residents during its hearings. As the only proposal outside New York City, MGM’s CAC consists of just five members, meaning it must secure four votes in favor to move without facing opposition.
The stakes are high for MGM, which has indicated that without a full casino license, it could face closure, unable to compete with three other commercial licensees nearby.
Source: iGaming Business
