A proposed Bally's casino in the Bronx received an unexpected blow as the New York City Council voted against the required amendments of zoning to build the $4-billion facility. The Council voted against the approval of necessary ground use changes 29-9, with four abstentions, effectively putting project development on hold pending any challenges.
Key Takeaways
- The NYC Council has blocked Bally’s Bronx casino plan by rejecting essential zoning change approvals
- Council member Marmorato opposed the project, citing strong community resistance and member deference tradition
- Bally’s has gone all in on its land-based operations after selling its global online operations to Intralot
At the core of this decision was the long-time member deference doctrine, under which substantial power in land use resides in the district's local elected officials. Council member Kristy Marmorato, responsible for the district where this casino will be located, moved against this project in light of adamant opposition in her district.
Her argument convinced most of her Councilmembers, including Speaker Adrienne Adams.
The zoning changes Bally's sought included removing the parkland designation from the existing golf course at Ferry Point and reclassifying the land to allow for mixed-use development. These steps were necessary for Bally's to compete for one of three downstate casino licenses offered by New York State.
Bally's Chair Soo Kim criticized the decision, attributing it to shifting expectations and a lack of appreciation for the company's efforts. Technically, with the Council's rejection, Bally's project is shelved as seven other contenders proceed further in the process.
Bally's and Intralot reach agreement on tech business merger
Earlier this month, Greece-based gaming operator Intralot and Bally's finalized a strategic deal that will reshape both groups' global operations. In a reverse acquisition meant to shorten Bally's commitment to U.S. projects, Intralot will acquire Bally's International Interactive business for $3.17 billion, making a global lottery and iGaming entity.
With this deal, Bally's would buy a controlling percentage in Intralot in exchange for cash and parent company stocks. It's being contemplated to bolster Bally's liquidity position as it invests in casinos with a ground presence in Australia and the U.S.
Upon completion of the deal, Bally's CEO Robeson Reeves will succeed Nikolaos Nikolakopoulos as CEO of Intralot. Nikolakopoulos will oversee the company's lottery business. The CEO switch ensures continuity of the board, with Intralot board chairman Sokratis Kokkalis and Bally chairman Soo Kim serving in office.
The deal will close before the end of the year, provided regulators give it clearance. It's among the largest restructurings of a world gaming company, with the resulting company set to compete favorably in an increasingly dynamic market while providing a solid foundation in the aftermath of disappointment, such as with its ill-fated Bronx casino project.
