Hedge fund billionaire Steve Cohen has secured approval for one of New York City’s pioneering casinos, marking the conclusion of a lengthy campaign for a coveted gambling license despite historical resistance to gaming establishments. The New York State Gaming Commission approved Cohen’s Metropolitan Park project, alongside two other casino proposals, in a decision made public recently.
The ambitious $8 billion casino complex, which will be situated adjacent to Citi Field—home of the New York Mets—aims to revitalize a rundown section of Queens characterized by junkyards and auto repair shops. Construction is slated to commence in January, with expectations for the casino’s opening in 2030. In a statement, Cohen emphasized his commitment to enhancing the community surrounding the ballpark since acquiring the Mets in 2020. He noted the calls from local residents and fans for improvement in the area.
While the project is backed by Cohen’s hedge fund, Point72, which manages $42 billion, it has raised alarms among local activists, particularly regarding potential adverse effects related to gambling, such as addiction and economic drain from the community. The casino complex is projected to generate significant revenue, with forecasts estimating $3.2 billion in gross income in its debut year; a substantial portion of this is expected to come from slot machine operations.
In addition to Cohen’s venture, the commission also green-lighted proposals from Bally’s Corporation and Genting Group’s Resorts World, which will expand its gaming operations in Queens. Each operator is required to pay a $500 million licensing fee, contributing to projected tax revenues for the state. Collectively, these three casinos are estimated to yield $5.5 billion in revenue by 2033.
The licensing process for these casinos originates from a 2022 state budget initiative aimed at bolstering tax revenue through expanded gambling options in the city and its surrounds. Cohen, projecting cumulative revenues of $38 billion by the tenth year of operation, garnered support from several politicians by pledging to create tens of thousands of jobs within the community.
However, Cohen’s involvement has drawn skepticism due to his past legal issues. In 2013, his previous hedge fund, SAC Capital, faced serious allegations of insider trading, resulting in a historic $1.8 billion settlement. While Cohen himself was not charged, his reputation has been a point of contention among critics, with some residents feeling uneasy about his influence in their community.
Activist group the Fed-Up Coalition has emerged as a prominent voice against the casino project, expressing concerns about the broader implications for families in the area. They recently organized a protest where over 100 attendees braved harsh weather conditions to voice their opposition. Democratic state senator Jessica Ramos, speaking at the rally, highlighted that the decision to permit a casino nearby could have long-lasting effects on local families and their future.
