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PoliticsA community panel has rejected a proposed Mohegan Sun casino resort in Manhattan, marking a significant decision in the ongoing debate over new gambling establishments in New York City. The project, which included various community benefits, was denied despite the developers' efforts to win local support. This decision leaves fewer options for state gambling licenses in the area.

Community Panel Rejects Casino Proposal in Manhattan

A proposed Mohegan Sun resort intended to be built near the United Nations headquarters in Manhattan was rejected by a state-appointed community advisory committee, effectively ending hopes for a casino in the area.

Source: AP2 min read

In brief

The Freedom Plaza development, which included plans for hotels, retail, and affordable housing, was denied by a community advisory committee on a 4-2 vote. The developers had aimed to make over 1,000 residential units permanently affordable, but local support proved insufficient. Other proposals for casinos in Manhattan have also faced rejection.

NEW YORK (AP) — There will be no casino in Manhattan after a community panel rejected a proposed Mohegan Sun resort near the United Nations headquarters.

The Freedom Plaza development, which also called for hotels, retail, dining, entertainment and housing, was denied by a state-commissioned community advisory committee on a 4-2 vote Monday.

Committee members, who were appointed by Gov. Kathy Hochul, Mayor Eric Adams and other local politicians, cast their votes with barely any discussion, other than to thank the applicants for their time and responsiveness.

In a last minute bid to gain local support, the developers announced over the weekend they would commit to making the more than 1,000 residential units proposed for the project permanently affordable. They had earlier proposed other community investments, such as a museum dedicated to democracy, a community center, a daycare and acres of public open space.

Michael Hershman, CEO of the Soloviev Group that was the lead developer on the more than $11 billion project, said their vision would have “revitalized” Midtown East.

“Manhattan is the undisputed capital of the world, and it deserved a fully integrated resort that would have attracted visitors while serving the needs of its community,” he said in a statement.

Spokespersons for Mohegan Sun, the tribe-owned casino company based in Connecticut, didn’t immediately respond to emails seeking comment.

The project, spanning more than six acres from 38th Street to 41st Street east of First Avenue, had been the last remaining proposal under consideration for Manhattan.

A Jay-Z-backed plan to build a Caesars Palace casino in Times Square and another proposal to build a gambling resort on Manhattan’s West Side were both voted down by two other community boards last week. Five proposals remain in the race for up to three lucrative state gambling licenses for the New York City area.

Among them is a proposed Bally’s casino on a Bronx public golf course, a gambling hall envisioned for Coney Island, and a Hard Rock casino proposed next to Citi Field in Queens. 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, expressing surprise at the negative votes during a television interview ahead of Monday’s meeting, emphasized that casinos could bring jobs, stability, and tourism to the area.

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