SL Green Keeps Door Open for Times Square Casino Despite Setbacks

SL Green Realty Corp. is refusing to give up on its dream of bringing a casino to Times Square, even after its high-profile proposal was rejected earlier this month. The plan,  a $5.4 billion partnership with Caesars Entertainment and Jay-Z’s Roc Nation, would have turned the 1515 Broadway office tower into a resort-style casino and hotel branded as Caesars Palace Times Square.

Although the project failed to win community support and was eliminated from the state’s ongoing downstate casino licensing process, SL Green says the idea still has life. Company CEO Marc Holliday told investors last week that the future of New York’s casino race remains uncertain and that the door could reopen for Manhattan if regulators decide to revisit unawarded licenses later this year.

About the Companies Involved

The Caesars Palace Times Square bid united real estate and gaming heavyweights. SL Green Realty Corp., Manhattan’s largest office landlord, led the development plan for 1515 Broadway, while Caesars Entertainment brought its decades of casino experience to the table. Caesars operates resorts across the country and runs one of the leading platforms for US online casinos, offering slots, table games, and live dealer titles to players nationwide. The partnership aimed to merge New York’s real estate strength with Caesars’ growing online presence, creating a modern entertainment destination that blended physical and digital gaming.

A Bid Meant to Transform Times Square

SL Green’s proposal aimed to do more than add slot machines to Midtown. The company,  Manhattan’s largest office landlord, pitched the casino as a way to boost tourism, generate union jobs, and fund safety and transportation improvements in the Times Square area.

The development plan called for repurposing the 54-story tower at 1515 Broadway, home to Paramount Global, into a multi-level entertainment hub with a luxury hotel, performance venues, and gaming floors. But when the Community Advisory Committee (CAC) reviewed the project in September, opposition from local politicians, Broadway representatives, and neighborhood groups was overwhelming.

Concerns centered on traffic congestion, the impact on Broadway’s theater scene, and the potential for gambling to alter the character of one of the city’s busiest tourist districts. When the CAC voted to reject the proposal, SL Green’s bid became the first officially eliminated from the competition for a state gaming license.

Where the Process Stands Now

The New York State Gaming Facility Location Board is expected to award up to three downstate casino licenses by December 1, but it is not obligated to issue all three. The decision-making process has stretched for more than a year as regulators weigh economic projections, community input, and zoning issues.

Out of the original eight applicants, only a few remain active. Resorts World in Queens, Steve Cohen and Hard Rock’s Metropolitan Park project near Citi Field, and Bally’s in the Bronx are still in the running. The race narrowed further this month when MGM Resorts withdrew its $2.3 billion bid to expand Empire City Casino in Yonkers, citing reduced expected returns.

That exit leaves three bidders for three potential licenses,  an outcome that some analysts say undermines the state’s goal of fostering competition. If regulators or lawmakers decide to reopen the process to encourage new contenders, Manhattan’s exclusion could be reconsidered, giving SL Green a second chance.

Manhattan Left Out of the Game

A 2021 study commissioned by the state suggested that at least one casino in Manhattan could maximize tax revenue and tourism benefits. Yet every Manhattan bid, including SL Green’s, was rejected by local committees.

Aside from the Times Square plan, proposals for The Avenir in Hell’s Kitchen and Freedom Plaza near the United Nations also failed to gain approval. With no remaining bids in the borough, the city’s most visited area could end up without a casino presence at all, a prospect that Holliday and others see as a missed economic opportunity.

SL Green’s Strategy Going Forward

For now, SL Green is keeping its options open. The 1515 Broadway property remains fully leased until 2031, providing steady income from Paramount Global, now part of Skydance Media. Holliday said the building’s location and structure make it adaptable for entertainment or hospitality use, should gaming opportunities return.

The company spent an estimated $13 million developing its casino proposal, but that expense hasn’t slowed its overall momentum. In the third quarter, SL Green reported funds from operations of $1.58 per share, up 39 percent from a year earlier and above analyst expectations. Leasing activity was intense, with more than 650,000 square feet of new Manhattan leases signed, pushing occupancy past 92 percent.

These results give SL Green the financial flexibility to wait for the right opportunity,  whether that’s a revived casino bid or a different form of redevelopment.

A Divisive Vision for Times Square

The proposed Caesars Palace Times Square wasn’t just a real estate project; it was pitched as a cultural collaboration. By partnering with Roc Nation, the company hoped to link gaming with live entertainment, framing the casino as a modern addition rather than a rival to Broadway.

Supporters,  including several unions and local business owners, believed the development would stimulate the economy and increase safety in the area. Opponents countered that it would overwhelm the neighborhood and threaten the very theater industry it claimed to complement.

The clash over the proposal illustrated New York’s broader tension between economic development and community preservation,  a debate likely to resurface if the state reopens bidding.

Not Ready to Fold

While SL Green’s chances of securing a casino license this year appear slim, Holliday has made it clear that the company isn’t walking away from the idea. He described the 1515 Broadway tower as “perfectly suited” for future transformation, whether into a casino, hotel, or immersive entertainment complex.

The state’s final decision on casino licenses is expected within weeks, but the possibility remains that one or more licenses could go unissued,  or that lawmakers may revisit the process in 2026. If that happens, SL Green plans to be ready.

For now, the company’s casino ambitions rest on hold, not abandoned, just waiting for the next shuffle of the deck.