Soloviev’s Next Play for Gaming License: Equity

14 May 2025

As the application process for downstate gaming licenses nears, Stefan Soloviev is throwing another wrench into the bidding.

The Soloviev Group is offering equity access to New York City residents in connection with the Freedom Plaza proposal in Midtown East, the company announced on Tuesday. It’s the latest gambit as a handful of developers jockey for a license from the state.

Up to 12 percent of any initial public equity raised for the development will be earmarked for residents of the city, allowing those eligible to share in the financial returns of the casino. Soloviev and its partner, Mohegan, will also provide investment allocations to state and city employee-related pension funds on a preferential basis.

A capital raise wouldn’t begin before 2027 and is contingent on Soloviev securing a gaming license.

“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,” Soloviev CEO Michael Hershman said in a statement.

Soloviev’s proposal is sited for the vacant seven-acre land on First Avenue between East 38th and East 41st streets. It features nearly five acres of public parkland, 1,047 apartments — roughly half of which would be affordable — 1,250 hotel rooms, a food hall, a spa, an art gallery and a gaming facility that would span nearly 300,000 square feet.

The developer has said the affordable housing can’t be a reality without the casino license. Residents have not been shy about their opposition to the proposal, one describing gambling as “blood money” that residents may soon be able to share in.

A person involved with Soloviev’s bid recently expressed concern about being disqualified if the state’s Gaming Commission fails to initiate required environmental reviews on time; Soloviev did not comment on that report.

Meanwhile, other casino bids are continuing to make progress. The New York State Assembly approved a measure this week that paves the way for Steve Cohen’s project at Citi Field to go forward, the New York Post reported.

Applications for the licenses are due on June 27.