NYC Casino Bidders Face Challenges

The chips are falling in New York’s high-stakes casino license competition — but not the way some developers hoped.

This week, Related Companies and Wynn Resorts folded on their $12 billion bid to bring a casino to Hudson Yards, opting instead for a mixed-use project with 4,000 housing units, an office tower and a hotel. The pivot marks one of the most high-profile exits in the race for three coveted downstate gaming licenses.

Wynn blamed the city’s rezoning process and entrenched opposition, despite promises of jobs and capital. Related, for its part, reached a “historic agreement” with City Council member Erik Bottcher, ditching the casino in exchange for rezoning support and community goodwill. The new plan looks more like the site’s 2009 vision — less glitz, more green space and housing.

Related isn’t alone in backing off. Saks Fifth Avenue quietly walked away from its casino vision that was originally planned for the top floors of its Midtown flagship. Despite an aggressive lobbying push, the retailer never even announced a gaming operator and faced firm resistance from the local community board.

And then there’s Las Vegas Sands, which scrapped its $6 billion Long Island bid at the Nassau Coliseum site. The company pointed to economic uncertainty, online gambling competition and slow political progress as reasons for ditching the project. Ironically, Sands’ CEO also happens to co-own the Dallas Mavericks — whose planned resort complex in Irving, Texas, was stripped of its casino and nightlife elements after public outcry.

In Coney Island, developer Joe Sitt’s $3 billion proposal took a hit after the local community board voted against necessary land use changes. The vote is non-binding, but in this game, community opposition could be a dealbreaker.

Some are still all-in. Steve Cohen sweetened his Citi Field bid by adding 450 affordable units two miles away in Corona. SL Green, Silverstein and Soloviev are still angling for Manhattan-based bids, but they’re hampered by slow-moving environmental reviews that may blow past the September deadline unless the state steps in.

While the casino license sweepstakes promised glamour, tax revenue and a burst of post-pandemic development, the political and community realities are proving harder to game.

And as the application deadline nears, more bets could crap out.

It was a busy week in real estate news but an even busier one for the courts. New York City had its first billion-dollar office sale in years, Mark Nussbaum, Elie Schwartz and Nir Meir all got updates in their legal cases and Anywhere Real Estate approached Douglas Elliman with a merger offer.

RXR buying 590 Madison for close to $1.1B

After intense competition for 590 Madison Avenue, Scott Rechler’s RXR emerged with a letter of intent to buy the 1 million-square-foot tower for just under $1.1 billion. The firm’s deal to buy the Plaza District tower from the State Teachers Retirement System of Ohio marks the most expensive office deal in New York in several years.

Douglas Elliman, which has seen its stock plummet following a turbulent year marked by financial losses, executive turnover, lawsuits and allegations of toxic company culture, has been offered an out. Anywhere Real Estate, the parent company for brokerages like Corcoran and Sotheby’s International Realty, approached the firm with a merger offer that would value Elliman at more than $4 per share — nearly double its current price.

Manhattan DA charges dealmaker Mark Nussbaum with grand larceny

Mark Nussbaum, once a top attorney for Lakewood and Brooklyn machers, has been charged with first-degree grand larceny. The Manhattan District Attorney’s office alleged Nussbaum stole over $15 million that was supposed to be held in escrow accounts from two victims between September 2024 and March 2025.

Elie Schwartz sentenced to 7 years in CrowdStreet scandal fallout

Nightingale Properties CEO Elie Schwartz has been sentenced to more than seven years in prison for his role in a $62.8 million crowdfunding fraud tied to real estate platform CrowdStreet. Schwartz pleaded guilty to wire fraud earlier this year after diverting investor funds meant for office projects in Atlanta and Miami Beach to finance his personal spending.

Even in ritzy Palm Beach, aging condos struggle under pressure of new laws and rising insurance

Palm Beach’s older condos are feeling the squeeze from a perfect storm of Florida’s new condo safety laws, rising insurance costs and competition from flashier developments across the water in West Palm Beach. Vlad Doronin’s OKO Group and Cain International recently unveiled plans for an ultra-luxury condo development — the island’s first oceanfront condo project proposal in over 20 years.

Inside a $14M fix-and-flip meltdown fueled by lender Renovo Financial

Chris Urban, a South Side real estate developer, faces foreclosure on 80 properties due to $13.7 million in loans from Renovo Financial and additional debts from private lenders, leading to accusations of a Ponzi-like scheme and financial mismanagement.

Mystery enshrouds Nir Meir hearing after former HFZ exec ordered back to Rikers

Nir Meir’s criminal fraud case left more questions than answers as to why the former HFZ Capital executive was ordered back to Rikers Island. At his court data Friday morning, Judge Ann Thompson cleared the courtroom for a closed-door conference — fueling speculation as to why he was ordered back to America’s most notorious jail last week.