At Coney Island, Madame Giry reminisces about Phantasma, the former "City of Wonders" ("Prologue"). Among the performers mentioned on posters are Meg Giry, the "Ooh La La Girl", and Christine Daa?, "the soprano of the century". Fleck, Squelch and Gangle, the freaks of Phantasma, goad Giry to "remember how it was". Giry goes into a reverie about Coney in its heyday ("The Coney Island Waltz"). Fleck blames Madame Giry for "what happened back then".
Ten years after the events at the Paris Opera, a group of vacationers arrive at Phantasma speculating about its reclusive, masked owner, Mr. Y. Meg Giry, Christine Daa?'s friend from the Paris Opera, is a performer with Madame Giry at her side. She and the performers of Phantasma win the crowd over with their performance of "Only for You". Giry tells Meg how wonderfully she performed.
The Phantom is Mr. Y, the creator and owner of Phantasma ("The Aerie"). In a tower above the park he has an automaton that resembles Christine. He still longs to be reunited with her ("Til I Hear You Sing"). Meg presses the Phantom for feedback on her performance, but he dismisses her. Madame Giry is irritated by the Phantom's continued obsession with Christine after all the help she has given him over the years ("Giry Confronts the Phantom/Til I Hear You Sing" (reprise)). She and Meg smuggled him from Paris. He was hired by a sideshow and made it what it is now with money raised by Giry and Meg. When Giry exclaims how Christine betrayed the Phantom, he orders her to leave. He considers how he will get Christine back.
Three months later, Christine, Raoul and their ten-year-old son Gustave arrive in New York and are met by crowds of paparazzi. They are greeted by the freaks, who arrive by horse and carriage to take them to Coney Island (?Are you ready to begin??). Raoul is angry at the reception and upsets Gustave by not playing with him. As Raoul leaves to go drinking, Christine tells Gustave to ?Look with your heart? to try and help him understand. Gustave goes to bed, and the Phantom arrives to recount a night of passion they shared the night before her wedding (?Beneath a Moonless Sky?). They recall that ?Once upon another time? they thought their love had a chance of succeeding. Gustave wakes up screaming from a nightmare and meets the Phantom for the first time as Mr. Y ("Mother Please, I'm Scared!"). The Phantom promises to show Gustave more of Phantasma.
In the rehearsal studio for Phantasma, Meg is surprised and jealous to learn that Christine will be singing. Raoul encounters Giry and discovers that the Phantom invited Christine to sing ("Dear Old Friend"). The freaks bring Gustave to the Aerie where he is greeted by the Phantom. Gustave plays a melody on the piano that leads the Phantom to suspect he is Gustave's father ("Beautiful"). The Phantom questions Gustave and finds they are kindred spirits. He unmasks himself, believing Gustave will accept him ("The Beauty Underneath"), but Gustave is horrified and screams. Christine comforts Gustave and, when pressed by the Phantom, confesses that Gustave is his son ("The Phantom Confronts Christine"). The Phantom declares that everything he owns will go to him. Having overheard everything, a furious Giry fears all her work over the years has been for nothing.
In a dingy bar, Raoul contemplates his relationship with Christine ("Why Does She Love Me?"). He is joined by Meg who tells him he is in "Suicide Hall", the place "where people end up when they don't know where else to go." Meg swims each day to wash away the stress of working. She tells Raoul that he must leave with Christine and Gustave. Raoul says he is not afraid of the Phantom, who has been behind the bar. As soon as Meg leaves, the Phantom reveals himself and they make a bet: if Christine does not sing, Raoul may leave with Christine and Gustave. Otherwise, Raoul must leave alone. The Phantom leads Raoul to question Gustave's paternity ("Devil Take the Hindmost").
The holiday makers are enjoying the last day of the season ("Heaven By the Sea" reprise) when a hot air balloon lands on the beach. Fleck, Squelch and Gangle appear to advertise Christine's appearance at Phantasma ("Ladies ... Gents!/The Coney Island Waltz" (reprise)). That night, Meg performs a strip-tease about her choice of swimming costumes, going topless at one point ("Bathing Beauty"). The audience goes crazy for Meg, but Giry tells Meg that the Phantom did not watch the performance and it was for nothing ("Mother, Did You Watch?").
"Before the Performance", Gustave explores backstage, while Raoul asks Christine to leave with him if she loves him. As Raoul leaves, the Phantom enters and tells Christine that Raoul's love is not enough and that she must sing for him. In her dressing room, Christine recalls the Opera where she had to decide between Raoul and the Phantom. Giry, Raoul and the Phantom wonder whether Christine will sing ("Devil Take The Hindmost" (reprise)). Christine performs an aria for the crowd, as Raoul and the Phantom watch ("Love Never Dies"). Raoul leaves as Christine finishes to thunderous applause. Christine is greeted by the Phantom and a letter from Raoul informing her of his departure ("Ah Christine"). Gustave is missing, and she becomes worried ("Gustave, Gustave"). The Phantom suspects Giry and threatens her. Fleck notes that she was passing Meg's dressing room when she noticed the mirror had been smashed and saw Meg dragging a small figure away. The Phantom believes he knows where Meg took him.
At Suicide Hall, Meg prepares to drown Gustave, when the others confront her. She holds up a gun so the Phantom will listen as she reveals that the resources Giry has afforded him came from Meg's working as a prostitute to influential men. The Phantom tries to get the gun, but in the confusion Meg accidentally shoots Christine. Christine reveals to Gustave that the Phantom is his father. She tells the Phantom that her love for him will never die. They have one final kiss, and she dies in his arms. The Phantom hands the body of Christine to Meg and comforts Gustave, who unmasks him. The show ends with Meg cradling Christine in her arms and Gustave accepting the Phantom as his father.
Check back soon when libretto and/or lyrics for Love Never Dies becomes available.