New York State Sen. Joseph Addabbo Jr., a longtime proponent of gambling expansion in the state, issued a statement Friday applauding the launch of the downstate casino licensing process. Sen. Addabbo also commended Gov. Kathy Hochul and the New York State Gaming Commission for sticking to the expected timetable and gaining momentum with this endeavor.
Key Takeaways
- Sen. Addabbo has praised the New York State Gaming Commission on its progress for the Downstate casino licenses.
- There are currently eight contenders for a license.
- The deadline is Dec. 1, with the Gaming Facilities Location Board granting three licenses to operators.
Approved as part of the FY2023 state budget, the initiative allows for a maximum of three new full-sized casinos in the downstate region. It has the potential for billions of dollars in private investment, helping to spur economic recovery and generate jobs across the New York City region. The process includes a $1 million non-refundable application fee, and if licensed, operators must pay the state at least $500 million in licensing fees.
The Gaming Facilities Location Board will review the bids, judging their economic value, how ready the site is, and whether there is evidence of community support. Prerequisites include zoning approval and Community Advisory Committee approval from a six-member committee of state and local representatives.
The committees have the power to veto any bid not supported by the community. The members need to cast their votes by Sept. 30.
The licensing process would generate a forecasted one-off income of $1.5 billion, with continuing taxation income devoted to education and problem gambling programs.
“The downstate casino gaming expansion brings substantial economic development opportunities with job creation, better entertainment choices for our communities and improved programs to address problem gambling,” Addabbo said. “The selection of licensees must be conducted with absolute integrity.”
Eight companies compete for NYC casino licenses
Eight companies have officially entered the race for one of three downstate casino licenses, each of which paid the necessary application fee to be in the running. One of the first contenders was MGM Resorts, whose bid is for a renovated Empire City Casino in Yonkers for $2.3 billion, including additions such as a sportsbook, live entertainment area, and environmental sustainability features.
The remaining proposals are dispersed throughout the five boroughs, with three proposals in Midtown Manhattan and one each for Queens, Brooklyn, and the Bronx. Two early frontrunners are Resorts World in Queens and MGM Yonkers because they already have racino operations in place. Wynn Resorts and Las Vegas Sands have already ruled out consideration, citing a bad regulatory environment and local opposition.
Developers have attempted to win political and public support through promises of economic investment, housing construction, and thousands of union jobs. While some have generated controversy regarding objections to congestion and safety problems, reception has been generally favorable otherwise.
The Gaming Facilities Location Board has to finalize its decisions by Dec. 1, and the licenses will be formally granted by the end of the year.
