- Saks Global has dropped its proposal to build a casino atop its 611 Fifth Avenue department store, citing a shift toward other strategic priorities.
- The project faced multiple hurdles, including landmark status, local opposition, and lack of a gaming operator partner.
- Saks is the first major player to formally exit the race for one of three downstate gaming licenses in NYC.
- Competitors like Steve Cohen/Hard Rock and Related/Wynn continue advancing their casino proposals, some with growing political support.
The Backstory
Saks Global, the parent company of Saks Fifth Avenue, has officially scrapped its plan to develop a casino at its Midtown Manhattan flagship, as reported by Commercial Observer.
The move comes more than a year after first announcing the concept in early 2023 and amid rising competition for the limited number of downstate gaming licenses.
The Vision That Wasn’t
Saks had proposed transforming about 200K SF on the top three floors of its iconic 10-story store at 611 Fifth Avenue into a high-end gaming facility. The project, however, never gained serious traction, facing pushback from community boards and complications tied to the building’s landmark status.
Missing Pieces
Unlike other bidders, Saks never named a casino operator partner—an expected requirement for state consideration. In addition, the property would’ve needed complex rezoning and community advisory committee approval, which proved formidable in an already competitive and politically sensitive landscape.
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Corporate Complications
The decision follows financial turbulence at HBC, the former parent of Saks, which began liquidation proceedings for parts of its business in March. The company’s Saks Off 5th discount stores will remain open, but the broader financial restructuring signals a shift in focus away from speculative ventures like casino development.
Still in the Game
With Saks bowing out, the field narrows slightly, but momentum continues elsewhere. Steve Cohen’s Queens proposal near Citi Field gained recent support from State Senator John Liu, while Related Companies and Wynn secured a major win with zoning approval for their Hudson Yards casino proposal—despite neighborhood resistance.
Why It Matters
The departure of Saks underscores how complex the licensing race has become in New York City. As political dynamics and community involvement play critical roles, developers must offer more than flashy plans—housing, transit improvements, and labor commitments are all now table stakes.
What’s Next
The New York State Gaming Commission is expected to award the three downstate casino licenses later this year. With at least 11 major bids still in play, competition remains fierce—and the spotlight is now on proposals that blend entertainment, real estate, and civic value.
