Saks Fifth Avenue drops New York City casino proposal

Saks Fifth Avenue has officially withdrawn its bid for one of New York City's downstate casino licenses, stepping away from an increasingly competitive field of contenders vying to bring full casino-style gaming to the city.

A spokesperson for Saks Global, parent company of Saks Fifth Avenue, Neiman Marcus, and Bergdorf Goodman, confirmed to CoStar News that the luxury retail conglomerate is no longer pursuing the high-profile gaming opportunity. The company cited a shift in focus to “other strategic priorities” but declined to elaborate further.

The company has recently acquired Neiman Marcus for $2.7 billion and is closing that brand's downtown Dallas flagship after the 2025 holiday season, along with a Saks Fifth Avenue store in Palm Beach, Florida.

Saks’ retreat also follows headwinds facing the global luxury market. According to Bain & Company, the personal luxury goods sector saw a 2% decline in 2024 — its first annual drop in 15 years, excluding pandemic-related disruptions — driven in part by waning enthusiasm for high-end brands among Gen Z consumers. Traditional department stores have also seen decreased foot traffic as online shopping continues to rise.

“Saks has announced a few closures in recent months as part of its cost-cutting initiatives,” said Sarah Helwig, Vice President at Morningstar Credit. “The failed casino bid doesn’t come as a major shock given the obstacles to get a license.” 

Initial plans called for a casino occupying the top three floors of the landmarked Saks building at 611 Fifth Avenue, complete with a glamorous, 1920s-inspired ambiance.

However, the proposal faced significant hurdles, including the constraints of the building’s protected landmark status and limited space, which could have impacted its viability.

Community opposition also played a role. Manhattan’s Community Board 5, which covers the Saks location near St. Patrick’s Cathedral and Rockefeller Center, has expressed firm resistance to any casino development in the district. Local support is a key factor in the evaluation process led by the state Gaming Facility Location Board.

Saks’ exit narrows the field of contenders still in the race for the coveted licenses, capped at three. Remaining bids include Related Companies and Wynn Resorts, proposing a resort at Hudson Yards; SL Green Realty and Caesars Entertainment, aiming for a Times Square location; Silverstein Properties, planning the Avenir, a large complex near Hudson Yards; The Soloviev Group and Mohegan, with a mixed-use casino near the UN; and Steve Cohen and Hard Rock International, seeking to redevelop 50 acres around Citi Field in Queens with a casino and affordable housing.

Hudson’s Bay claimed it could open within a year, faster than other proposals, except for the existing Resorts World and Empire City racetrack casinos, which are considered front-runners. However, its smaller size may have worked against it, as the state will prioritize the economic potential of each project.

Hudson’s Bay hired Cozen O’Connor lobbyists to promote the casino, but ended that contract in July 2024. Unlike most other bidders, Hudson’s Bay did not partner with a gambling company for operations.

Casino bids are due by June 27, followed by votes from neighborhood officials and a final decision from a state board by December 1. Hudson’s Bay is the first to drop out of the process since Vornado Realty Trust ended its bid for the Hotel Pennsylvania site in 2023. 

Each casino license is expected to generate up to $2 billion annually, but winning bidders must pay a $500 million license fee, invest at least $500 million in capital, and pay annual taxes that will direct $231 million to the state.