Coney Island Casino Will Sell Shares to Locals if Approved

Locals will be able to own shares in The Coney, a $3 billion project that aims to build a casino hotel on Coney Island, New York.

Thor Equities, Saratoga Casino Holdings, Legends, and Global Gaming Solutions, the Chickasaw Nation's commercial organization, announced Thursday that if their bid for a downstate casino license is accepted, they will begin selling shares to Coney Island residents so that investors can share in the gaming establishment's profits.

"Shares in the program will only be sold to families in Coney Island to ensure that the project’s benefits stay local. In order to make the program accessible to Coney Island families, the minimum investment amount will be $100,” according to a statement.

Compared to what some other municipal casino initiatives across the nation have proposed, that minimal investment amount is far lower.  According to the Coney's supporters, the plan complies with Securities and Exchange Commission (SEC) rules.

Coney Offers Share Sales Alongside Other Casino Bidders

In New York, there are eight proposals for three downstate casino permits, indicating that there is intense competition and that bidders must find ways to differentiate themselves.

One method to achieve that goal is through localized share sales, like the one The Coney is proposing.  Bally's used that strategy in Chicago and New York, and it is anticipated that the operator will try it once more with its proposal for the Bronx.  Similarly, Roc Nation, the entertainment company owned by hip-hop tycoon Jay-Z, Caesars Entertainment, and real estate developer SL Green are anticipated to offer shares to New Yorkers in their Times Square casino if it is permitted.  It is anticipated that the minimum investment in Times Square will be $500.

“The community is our most important stakeholder, so it just makes sense that Coney Island’s working-class families, who have been neglected for decades, and whose unemployment rate is amongst the highest in the City, get an opportunity to buy into this project in a way that is affordable so that even more of the positive economic impact stays local,” said Thor Equities Executive Vice President Peter McEneaney in the press release.

Additional  Benefits of Coney Casino

The Coney reaffirmed its commitment to a $200 million community trust, which would be used for community grants, workforce development, economic mobility, and improvements to the Coney Island Boardwalk.

Additionally, $75 million in public safety monies were mentioned in the statement, which would support New York's police and fire departments as well as emergency medical services.