Broadway Stands Its Ground as Times Square Casino Gets the Boot

The Jay-Z-backed Caesars Palace casino project in Times Square has been rejected by a state-commissioned community advisory committee, marking a significant setback for the $5.4 billion redevelopment plan. The decision came after intense opposition from Broadway theater owners, producers, and neighborhood stakeholders who expressed concerns that the proposed gambling complex would negatively impact the theater district. The committee voted 4-2 against the proposal, effectively blocking its path to a state gaming license before it could proceed to further review.

Marc Holliday, CEO of SL Green and the primary developer, responded angrily to the outcome, calling the vote a “despicable display of cowardice” and accusing the committee of neglecting the broader economic benefits the casino could bring to the area. The project, which aimed to redevelop an office tower at 1515 Broadway—home to the Minskoff Theatre and long-running “The Lion King” musical—was backed by Jay-Z’s Roc Nation, Caesars Entertainment, and high-profile figures like Rev. Al Sharpton and former NYPD Commissioner Bill Bratton. Developers envisioned the Caesars-branded resort as a global entertainment destination, emphasizing its potential to generate new tourism, jobs, and economic activity for the neighborhood.

However, Broadway stakeholders argued that the casino would siphon visitors away from the theater district, which is still recovering from the economic impact of the pandemic. The Broadway League, a trade group representing the theater industry, maintained that the project would undermine the cultural and commercial vitality of the area. At public hearings, show managers and performers used music and testimony to voice their concerns, including one show manager who sang a parody of Frank Sinatra’s “New York, New York” to highlight the community’s resistance.

Jay-Z and his supporters countered that the casino would complement, not compete with, existing businesses. In a recent interview, Jay-Z emphasized that the project was designed to draw more people to the area, encouraging them to attend shows, dine, and stay in nearby hotels. The developers also pledged a $250 million community benefits package, including a civil rights museum and public safety improvements, as part of the broader appeal of the project. Despite these promises, opponents remained skeptical, pointing to concerns over congestion, displacement, and the perceived prioritization of profit over community interests.

The rejection of the Times Square plan is part of a broader competition for three downstate New York casino licenses, with other bids vying for approval in locations like the Bronx, Brooklyn, and Queens. These include a Bally’s casino near the former Trump-run golf course in the Bronx and a Hard Rock casino adjacent to Citi Field in Queens. A second Manhattan-based project, the Avenir, also faced rejection on the same day by the community board overseeing the Hudson Yards area. This decision was criticized by Avenir representatives, who claimed the committee moved forward without allowing sufficient time to respond to late requests for information.

The state Gaming Commission will ultimately determine which three proposals receive full licenses by December, but all must first secure community board approval. With the Times Square and Hudson Yards proposals now eliminated, the race for the licenses narrows to projects in other boroughs and upstate New York. Developers of the remaining bids continue to highlight economic growth, job creation, and tourism as central selling points, while critics remain wary of potential negative impacts on local communities and cultural assets.