Jay-Z, Roc Nation Offering $250M to Support Times Square Casino Bid

Music mogul Jay-Z has been putting his money towards community improvements and is offering up funds tied to the success of a Times Square casino to give the Hell's Kitchen area of New York a boost. (Image: Richard Shotwell / AP)

One of the biggest hurdles facing nearly every project bidding for a downstate New York casino license is overcoming local opposition. Jay-Z is hoping to overcome this issue for his Times Square casino proposal the old-fashioned way: with millions of dollars in cash.

Ceasars Palace Times Square announced a commitment of $250 million in community benefits developed by Jay Z’s Roc Nation to the Hell’s Kitchen community on Monday, including the affordable housing development of Manhattan Plaza.

Grant Money Tied to Casino Performance

Roc Nation is partnering with Caesars Entertainment and SL Green to develop the casino, which would be located at 1515 Broadway, converting what is currently a 54-story office building into a full-scale casino resort. 

Under the program announced on Monday, the surrounding community would initially receive a $15 million grant from Caesars Palace Times Square when the casino’s bid was approved. Future grants would be regularly dispersed based on 0.5 percent of the casino’s performance.

“We are New Yorkers. Supporting and providing opportunities for our neighborhoods and community isn’t just a part of Roc Nation’s ethos; it’s our collective responsibility,” Jay-Z said in a statement. “Any proposal that wins a gaming license will undoubtedly profit. Our vision is to give back to New York and ensure that the Broadway community, Hell’s Kitchen, and the surrounding businesses and areas all benefit…not just for a minute, but for the long-term.”

According to the press release, the money from these grants would be distributed through a trust that would be controlled by community residents, who would in turn make distributions based on community priorities. In total, the Caesars Palace Times Square bid has promised $250 million in community funding, including improvements to local sanitation, security, and congestion management. 

Times Square Residents Opposed to Casino Development

While the outlay of funds sounds impressive, it may not be enough to overcome the significant opposition to the Times Square casino project from local residents.

In May, the No Times Square Casino Coalition released a poll finding that 71 percent of registered voters in or near Times Square were against the proposal, with only 23 percent coming out in favor of the Caesars Palace Times Square project. 

Residents in the polling were strongly concerned that a casino could make traffic worse, attract more crime to the area, and generally “make the area less pleasant for those who live and work there.” 

That’s not to say that there’s no support in the area for the project. In August, a group of 17 labor unions signed off on a letter to local elected officials supporting the Times Square casino, noting that both SL Green and Caesars have a history of good relations with organized labor groups. 

The Caesars Palace Times Square project is among nearly a dozen major proposals that are fighting for a maximum of three casino licenses available in New York City, Long Island, and Westchester County. Some of the top contenders include two existing racinos – Empire City Casino on Yonkers, which is operated by MGM Resorts, as well as Resorts World Casino in Queens, owned by the Genting Group – as well as a Las Vegas Sands proposal at the Nassau Veterans Memorial Coliseum in Uniondale, Long Island and New York Mets owner Steve Cohen’s proposal to build a casino with Hard Rock International in the parking lots adjacent to Citi Field.