Posted on: September 17, 2024, 10:26h.
Last updated on: September 17, 2024, 10:38h.
A powerful Democrat in the New York State Senate said this week that Gov. Kathy Hochul (D) remains evasive to legislation that would expedite issuing the three downstate casino licenses the legislature authorized in 2013.
The 2013 gaming bill created four upstate and three downstate licenses for slot machines and live dealer table games. Sports betting has since been included in the gaming privileges.
The casino package came with a 10-year moratorium on the downstate licenses being issued. The delay was designed to give the upstate properties time to solidify their customer bases without downstate competition.
The three downstate licenses are coveted opportunities, with the largest casino operators prepping bids. The resort developments, each with an upfront $500 million licensing fee, are expected to provide the state with critical tax revenue amid a shrinking taxpayer base and a desperate need to provide funding for major public transportation infrastructure upgrades.
Governor Dragging Process
State Sen. Joe Addabbo (D-Queens), who chairs his chamber’s Racing, Gaming, and Wagering Committee, sponsored legislation earlier this year to speed up the downstate casino licensing process. The measure, which he championed with Assemblyman Gary Pretlow (D-Mount Vernon), sought to require that bids be submitted to the New York Gaming Facility Location Board by August 31 — far sooner than the board’s current deadline of June 27, 2025.
August 31 has come and gone, and Addabbo and Pretlow’s bill, which passed the Assembly and Senate in June, remains stalled. The lawmakers haven’t forwarded the gaming measure to Hochul because it’s believed the governor will veto it.
Addabbo told Spectrum News this week that he remains hopeful that Hochul will change her mind and realize that speeding up the process is in the state’s best interest. Along with generating an immediate influx of $1.5 billion for the state, critical money that could come in the aftermath of Hochul folding on the “congestion toll” that would have jacked up tolls into Manhattan, Addabbo says the casinos will create thousands of jobs.
These are great union jobs. We’re talking about each site having at least a thousand construction jobs. Post-construction, each of them [will have] 2,500,” Addabbo said.
Eleven bids remain for the three licenses. Though nothing is set in stone, it’s widely believed that two licenses are already spoken for with MGM Resorts’ Empire City Casino in Yonkers and Genting’s Resorts World New York City in Queens. Those racinos currently offer slot-like video lottery terminals and electronic table games.
Current Timeline
Unless Hochul reverses course to get on Addabbo and Pretlow’s timeline for the downstate casinos, the Gaming Facility Location Board expects to render its winners by Dec. 1, 2025.
Along with MGM and Genting, notable casino companies preparing submissions include Caesars Entertainment in Times Square, Wynn Resorts in Hudson Yards, and Las Vegas Sands on Long Island.
Hard Rock is partnered with billionaire Steve Cohen on a proposal for an integrated resort at the New York Mets’ Citi Field in Queens. Mohegan is developing a scheme on the East Side near the United Nations Headquarters. Bally’s is pitching a casino at its golf course in the Bronx and a consortium led by the Chickasaw Nation has developed a bid for Coney Island.
