Soloviev Group To Offer IPO To NYC Residents Tied To Casino Bid

The Soloviev Group, which is proposing to build a casino along the East River in New York City, announced plans to offer New York City residents the opportunity to become shareholders via initial public offering in the $11 billion project if the bid is selected for a gaming license.

Freedom Plaza — which will have Mohegan as its casino operator — is one of four Manhattan-based bids expected to be submitted to the New York State Gaming Commission for the three downstate casino licenses available.

The Soloviev Group is designating up to 12% of any initial public equity raised for Freedom Plaza for New York City residents, putting the raise between $150 million and $180 million. It also plans to provide investment allocations to eligible state and city employee-related pension funds on a preferential basis as a means of “ensuring broad community participation and benefit.”

“Soloviev, in partnership with Mohegan, is committed to fostering prosperous long-term relationships with residents, community organizations, and businesses both locally and throughout New York,” said Michael Hershman, CEO of the Soloviev Group. “Our visionary Freedom Plaza project exemplifies these goals, and we would be thrilled to offer a financial interest to these stakeholders.”

Should the group be awarded a casino license, the capital raise would begin no earlier than 2027.

Finalizing details before bid deadline

The Soloviev Group is not the first company to offer a casino-based IPO. Bally’s released details last month for a $195 million IPO as it tries to reach a state-mandated 25% minority investment target for its Chicago casino targeted for a September 2026 opening.

The deadline for bids to be considered for the downstate licenses is June 27. It is expected two of those licenses will go to existing racinos at Yonkers (Empire City by MGM Resorts) and Aqueduct in Queens (Resorts World NYC), and as many as nine bids are expected in what will undoubtedly be a fierce competition for the remaining license.

The Soloviev Group is proposing a casino to be built on nearly seven acres spanning 38th Street to 41st Street east of First Avenue in Manhattan. In addition to the casino, the multibillion dollar proposal includes two world-class resort hotels to be operated by Mohegan and Banyan Tree Group, approximately 4.7 acres of publicly accessible green space, a museum, and an array of retail shopping and dining options.

A formidable field of contenders

There are three other Manhattan-based bids expected to be submitted to the NYSGC:

• The Avenir, which is proposing a casino on the West Side at 41st Street and 11th Avenue and recently added Rush Street Gaming to its bid.
• Hudson Yards, which is also proposing to build on the West Side and reportedly modified its $12 billion project recently to increase the number of housing units from 1,500 to 4,000.
• One from Jay-Z’s Roc Nation and Caesars, which want to bring a gambling venue to Times Square.

Saks, which had proposed a gaming venue on Fifth Avenue in midtown, dropped plans to submit a bid last month.

There are other casinos being proposed in other boroughs, most notably the $8 billion Metropolitan Park bid fronted by New York Mets owner Steve Cohen and Hard Rock, which proposes a gaming venue in Queens next to Citi Field.