Entrepreneur
New York City is called the city that never sleeps for a reason. Nightlife is one of its largest economic engines for the city, generating tens of billions of dollars and hundreds of millions of dollars in tax revenue each year.
But for all its world-class bars, clubs and theaters, one element has always been missing: a casino. That will soon change, as the city prepares to issue three new gaming licenses to prospective bidders, paving the way for the first casinos in NYC.
There are 8 total bids for the three licenses. Just two of those bids would be located within the city. And only one of them is backed by Jay-Z.
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Upping the ante
The idea for a Times Square casino didn’t originate in a boardroom — it started courtside at a Nets game. That’s where Jay-Z ran into Marc Holliday, chairman and CEO of SL Green Realty Corp., the real estate investment trust that owns 1515 Broadway, a building in the heart of Times Square slated for renovation.
When Holliday floated the idea of a casino in collaboration with Caesars Palace, Jay’s interest was immediately piqued. His entertainment company, Roc Nation, has experience in the gambling space, from operating a casino inside its Las Vegas 40/40 Club in 2008 to holding a partial stake in Fanatics Betting.
Image credit: Roc Nation
He quickly looped in Roc Nation CEO Desiree Perez, who happened to be receiving an award alongside Holiday at the Gridiron Dinner later that week. After the event, Perez and Holliday met up to explore the concept further — and the partnership began to take shape.
“It’s something we can do really well because it lives squarely in the world of entertainment,” Perez says. “And with everything we do, every business we run, there’s always a community component.”
Related: Jay-Z Invests Big Money in a Robo Pizza Truck That’s Solving a Major Food Industry Problem
Play the hand you’re dealt
The decision to bring casinos to New York City is not without controversy. Some polls indicate that as many as 71% of Times Square residents oppose the move. But Roc Nation CEO Desiree Perez frames it differently: the licenses are inevitable — it’s just a matter of who secures them.
Perez emphasizes that Roc Nation has made a concerted effort to ensure the casino benefits residents as much as it does developers.
“I spent five years talking to communities around the area, listening to feedback from locals,” Perez shares. “Some people would tell me they just don’t like casinos. I would say, ‘I understand, but if one were to come anyway, what would you want them to help you with?'”
According to Perez, residents’ primary concerns were security and traffic.
As part of their bid, the consortium has committed $250 million over 10 years in community benefits for Broadway, public health and safety in Times Square and surrounding neighborhoods. Additionally, they have pledged 0.5% of revenue in perpetuity to the West Side Community Fund to provide long-term support to local residents.
The breakdown of these funds is outlined below.
Roc Nation, SL Green and Caesars Palace have also partnered with Cadre founder Ryan Williams on an initiative that allows local households to invest in the casino with a minimum of $500.
“Sometimes we agree with leaders, sometimes we don’t — but at the end of the day, it’s the citizen who’s left standing,” Perez says. “If the city is going to issue 30-year licenses worth billions, shouldn’t those companies be held accountable? Shouldn’t they be giving back to the community, offering the best possible package for New Yorkers?”
If Roc Nation’s bid is successful, payments to the community will commence right away. But residents will have to wait at least 3 years for the actual renovations to be completed.
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New York City is called the city that never sleeps for a reason. Nightlife is one of its largest economic engines for the city, generating tens of billions of dollars and hundreds of millions of dollars in tax revenue each year.
But for all its world-class bars, clubs and theaters, one element has always been missing: a casino. That will soon change, as the city prepares to issue three new gaming licenses to prospective bidders, paving the way for the first casinos in NYC.
There are 8 total bids for the three licenses. Just two of those bids would be located within the city. And only one of them is backed by Jay-Z.
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