Caesars Entertainment’s (NASDAQ:CZR) effort to build a casino in New York’s Time Square has been shot down by the Community Advisory Committee, failing to achieve the required two-thirds vote necessary to advance the proposal to the state level.
The $5.4B Times Square casino project was a joint venture between Caesars Entertainment (NASDAQ:CZR), SL Green (NYSE:SLG), and Jay-Z’s Roc Nation, a subsidiary of Live Nation Entertainment (LYV).
While the developers promised jobs and a “significant” economic boost to New York City, concerns about increased crime, congestion, and changing the character of Times Square led the Broadway community, labor unions, and residents to launch a campaign against the proposal.
And although a Times Square casino has been rejected, Albany will still offer three licenses for a casino in the city. The project proposed at 1515 Broadway was one of eight candidates for a Manhattan casino.
Shares of Caesars Entertainment (NASDAQ:CZR) were whip-sawed in the wake of the vote, currently holding onto a fractional gain. SL Green (NYSE:SLG), however, took a dive and last traded nearly 5% lower, although currently respecting support at its 200-day moving average.