Saks Fifth Avenue Drops Bid for Casino at New York Flagship Store

Saks Fifth Avenue Drops Bid for Casino at New York Flagship Store

Saks Fifth Avenue is said to be abandoning its plans to compete for one of the unawarded downstate casino licenses in New York City. 

A report emerged Thursday indicating that the retailer will withdraw a proposal for constructing a gaming venue at its main store on Fifth Avenue. The retailer had aimed to transform the ninth to eleventh floors of the Manhattan department store into a gaming space influenced by the James Bond film "Casino Royale" featuring Daniel Craig. The shop has existed for over eighty years. 

The retailer informed at least one source that it is exiting the New York casino contest, but did not provide further details on the reason. Saks revealed the casino project over two years ago, yet the company has not disclosed a gaming partner. 

Additional Indicators That Saks' Casino Proposal Was at a Standstill 

Besides failing to reveal a gaming partner — a crucial aspect of the downstate casino proposals — there were further indications that the Saks plan was not among the top candidates. 

For instance, there was some resistance from the community regarding the proposal, while the anticipated backing from the theater community did not emerge openly. The location would have also been without a hotel and numerous amenities typical of Las Vegas-style casinos, implying it wouldn't have generated as many jobs as competing proposals. 

This would also have been accurate regarding construction. Saks anticipated that avoiding the need to develop a gaming venue from scratch might offer a benefit, and although it would have saved time, merely refurbishing several floors at its flagship store wouldn’t have supported construction job growth comparable to the other casino proposals downstate. 

Saks teams up with real estate developer Vornado, among others, as major names that previously showed interest in vying for downstate casino licenses but later withdrew those pursuits. 

Saks Casino Encountered Tough Challenges 

Limited advancement has occurred regarding the granting of the three downstate casino licenses in New York, and more than three months into 2025, it’s likely this process will extend into the next year, but it has been evident from the beginning that the Saks proposal encountered significant challenges. 

It is commonly thought that MG Resorts International’s Empire City Casino in Yonkers and Resorts World New York in Queens, major tax contributors for the state, are expected to secure two of the three licenses, suggesting other applicants are competing for only one permit. 

Rumors suggest that proposals from Caesars/SL Green, Hard Rock International/Steve Cohen, Las Vegas Sands, and Related Cos./Wynn Resorts, among others, are more likely to succeed than the Saks proposal.