Saks Fifth Avenue has officially pulled out of the race for one of New York’s three downstate gaming licenses, marking a high-profile withdrawal from the increasingly competitive bidding process. The department store confirmed to Crain’s New York Business that it had withdrawn its application, stating it was now “focused on other strategic priorities.”

Saks abandons casino plan for Fifth Avenue flagship:

The upscale retailer first unveiled its proposal in January 2023, envisioning a 200,000-square-foot casino atop its flagship store at 611 Fifth Avenue. The planned venue would have occupied the ninth floor of the 12-story building, currently home to sections for discounted clothing, seasonal décor, and children’s books. Just a week after announcing the idea, Saks released glitzy renderings showcasing a red-carpet entrance, luxurious interiors, and a rooftop space offering views of Rockefeller Center.

Despite the promising concept, progress quickly stalled. According to The Real Deal, the project faced strong resistance from the local community board, which opposed the introduction of any casino to the district. The location’s proximity to the landmarked St. Patrick’s Cathedral also raised concerns.

A critical missing piece in Saks’ proposal was a confirmed gaming operator. Unlike competing bids that partnered with major casino brands, Saks never disclosed a collaboration with a licensed operator, a key element required for serious consideration.

Although lobbyists from Cozen O’Connor continued promoting the idea as late as July 2024, signs of disengagement had already begun to emerge. Hudson’s Bay Company, the parent company of Saks Fifth Avenue, reportedly stopped active participation in the licensing process in the months leading up to the announcement.

The proposal, inspired in part by the aesthetics of James Bond’s Casino Royale, aimed to repurpose existing upper floors of the historic retail building instead of constructing a new facility. This approach might have offered efficiency in terms of time, with completion estimated at under a year, but it would have resulted in significantly fewer construction jobs compared to the more ambitious, ground-up projects being put forward by other bidders.

Casino competition moves ahead without Saks:

With Saks’ withdrawal, ten major proposals remain in contention for the three licenses. Notable bids include Steve Cohen’s $8 billion “Metropolitan Park” near Citi Field, the Freedom Plaza casino concept near the United Nations by the Soloviev Group, and a Caesars Palace Times Square plan backed by Jay-Z’s Roc Nation.

Cohen’s proposal recently gained momentum after the New York City Council approved zoning changes in March. His team also introduced plans for a 100% affordable housing development nearby in Corona to enhance community appeal. Meanwhile, the Soloviev Group revealed updated renderings of a nearly 5-acre waterfront park surrounding its Freedom Plaza proposal, complete with a central lawn, play areas, and an amphitheater.

Industry insiders widely expect two of the three available licenses to go to existing venues—Empire City Casino in Yonkers and Resorts World New York in Queens—both of which have already generated significant tax revenue for the state. This has left most remaining bidders competing for just one available slot.

Applications for the licenses are due by June 27. Each proposal must pass a local review by six-member community boards before advancing to a five-person state panel, which is expected to announce final decisions by December 1, 2025.