By Eddie Tolmasov
The City Council just quietly cleared a path that could reshape Coney Island–and possibly set a precedent for the rest of New York.
With a 36–11 vote at the end of June, the city approved a major rezoning to allow “The Coney, ” a proposed $3 billion casino and entertainment complex backed by a group of developers including Thor Equities. The decision not only changes the zoning map–it literally removes a public street (Bowery Street) and grants air rights for a set of new towers and pedestrian bridges.
In other words, the city is making room, physically and politically, for a different kind of economic engine.
This isn’t just about gambling. In fact, the casino portion of the project still has to go through a separate state-level approval process. There are only three downstate casino licenses up for grabs, and eight different proposals competing for them–including bids in Times Square, Hudson Yards, and yes, Queens. But what happened in Coney Island is worth paying attention to, especially for anyone who cares about land use, real estate development, or how city priorities are shifting.
Because whether or not the Coney Island project wins a license, the signal is clear: New York is open for entertainment business. And that means developers and city officials are no longer just focused on housing, office towers, or infrastructure. They’re making room–literally–for year-round tourist attractions, nightlife anchors, and big-money hospitality. That’s a shift.
In real estate terms, the story here isn’t about roulette tables. It’s about zoning flexibility. If the city is willing to demap streets and rearrange neighborhoods for a private development tied to entertainment and retail, that opens the door to other projects pitching a similar economic vision.
We’re seeing it already: Willets Point is halfway into its own transformation, with the city approving a new stadium, thousands of residential units, and rumors of its own casino bid near Citi Field. Meanwhile, landlords across the city are watching how this trend affects everything from foot traffic to valuations.
Of course, not everyone’s on board. Coney Island locals have raised real concerns–about traffic, crime, and what this means for the smaller, seasonal businesses that give the boardwalk its identity. The developers are offering a $200 million community fund, but some residents worry that once the towers go up, the character of the area will disappear. Those kinds of cultural concerns may sound far away from spreadsheets and cap rates–but they matter. Neighborhood perception affects investment. And public backlash can slow or stop a project cold.
Still, from a market perspective, we’re in a moment where big entertainment-backed developments are being taken seriously–and even fast-tracked. The state’s Gaming Commission is expected to issue casino licenses by the end of 2025. Between now and then, developers across the city are watching how far the city and state are willing to go to accommodate these proposals. For brokers, investors, and anyone tracking long-term trends, it’s worth noting: zoning, once seen as rigid and slow, is now being bent for a new kind of asset class.
The question isn’t whether this is good or bad. The question is whether it’s a one-off–or the beginning of a broader shift. And if it is a shift, the real estate world needs to be ready to move with it.