Saks Fifth Avenue Takes a Gamble on NYC Casino

The iconic New York City department store would see its top three floors converted into a Monte Carlo-style casino.

Saks Fifth Avenue is feeling lucky. 

The iconic New York City department store, which opened its doors on September 15, 1924, is looking to get into the casino business.

Hudson’s Bay Company, the owner of the Saks Fifth Avenue department store chain, said it would bid with the state to convert the top three floors of its flagship store in Midtown Manhattan into a Monte Carlo-style casino, according to the New York Times.

The project, starting on the ninth floor of the luxury department store, will cover about 200,000 square feet, including a new lobby with a separate red-carpet-lined entrance for the casino.

New York voters first approved the legalization of Las Vegas-style casinos in the state in 2013.

In April, New York State authorized up to three casino licenses for downstate New York, which includes New York City, Long Island and Westchester County.

The state’s gaming commission issued its request for applications (RFA) for three available license on Jan. 4. The New York Gaming Facility Location Board has a Feb. 3 deadline to gather the first set of answers from the RFA.

Long List of Competitors

Hudson Bay will be competing with the likes Steve Cohen, the owner of the New York Mets, and Related Companies, the developer behind Hudson Yards real estate development. 

The list also includes a partnership between Thor Equities and other companies to erect a casino in Coney Island in Brooklyn; and an SL Green partnership with Caesars Entertainment and others to convert a Times Square high-rise into a casino.

In-person sports betting became legal in New York State in 2019, while online sports betting became legal in the Empire State in January 2022.

Online sports betting in New York set industry benchmarks for its first year, with a 12-month handle of $16.2 billion, total gross gaming revenue at $1.36 billion and tax revenue totaling $693 million, according to Legal Sports Report.

The Saks Fifth Avenue Building was planned in the early 20th century by Horace Saks, head of Saks & Company, which then had a flagship store at Herald Square. 

The building was constructed from 1922 to 1924 as "Saks-Fifth Avenue", a joint venture between Saks and his cousin Bernard Gimbel. Saks Fifth Avenue later became a department store chain in its own right, and the Fifth Avenue store became a flagship location.

Across the Street from St. Patrick's Cathedral

The building is also located across the street from Saint Patrick’s Cathedral.

Reaction on social media to the idea leaned toward the negative.

One person tweeted a video clip of Staler and Waldorf, the cranky audience members from "The Muppet Show" laughing uproariously.

"Saks Fifth Avenue wants to turn their flagship store in midtown, beside St. Patrick's Cathedral, into a casino. Scuse me?" the tweet read.

"Great," one person tweeted. "Gamblers can pop across the street to St Patrick’s to pray they’ll hit the big one or for consolation after losing everything. NYC is a helluva town."

"I thought all the casinos were down on Wall St," another person said.

"Give teachers a raise? Naaaah. Build casinos? Oh hell yeah!" another tweet read,

But one person seemed enthusiastic about the casino conversion.

"You can imagine some fabulous movie from the '30s or '40s where Nick & Nora Charles or the chorus girls from "42nd Street" stop in at the Saks Casino ...", the tweet read.