Bill to Expedite NYC Casino Licenses on Life Support

Posted on: August 11, 2024, 04:00h. 

Last updated on: August 11, 2024, 12:50h.

Todd Shriber @etfgodfather Read More
Expertise: Financial, Gaming Business, Mergers and Acquisitions.

Legislation to speed up bidding for three New York City-area casino licenses faces a bleak near-term outlook. The objective of the bill was to open the window for proposals by the end of this month, but that appears unlikely because there’s less than three weeks left in August.

New York
An aerial shot of the New York State Capitol and Empire State Plaza in Albany. A bill to speed up downstate casino approval appears to be headed to the legislative graveyard. (Image: NY.Gov)

Compounding the ominous fate of the legislation is the point that Gov. Kathy Hochul (D-NY) hasn’t publicly endorsed the bill. In May, Sen. Joseph Addabbo (D-Queens) and Assemblyman Gary Pretlow (D-Mount Vernon) proposed bills in their respective chambers that would have allowed gaming companies to submit proposals for the three downstate permits at the end of July. That date was pushed out to Aug. 31, but if approved, it could have put mid-2025 on the table for a decision on the winning bidders.

Although Hochul hasn’t publicly said she won’t sign the bill, industry experts and New York political observers believe the writing is on the wall. Even if the Addabbo/Pretlow legislation was approved imminently, there’s not enough time for gaming operators to ready proposals for what are likely to be some of the most expensive casino hotels in US history.

Ominous Outlook for Speeding Up NYC Casino Bids

Even Pretlow acknowledged to Newsday that it currently appears unlikely that Hochul is going to move on the bill before the end of this month.

Michael Hershman, CEO of the Soloviev Group, echoed a familiar refrain, telling Newsday the expedited licensing bill is now a “moot point.” The Soloviev Group is partnering with Tribal casino giant Mohegan on a proposed gaming venue near the United Nations building on Manhattan’s East Side.

For contenders, an early opening of the bidding window would likely be met with applause because as things stand today, the New York Gaming Facility Location Board is eying June 27, 2025 as the date for applications to be submitted. After that, “Community Advisory Committees (CACs) will form immediately thereafter and commence their statutory work.”

The Board expects to make decisions by December 1, 2025, followed by Commission licensure by December 31, 2025. This ensures that New York State will collect the already-booked casino license fee(s) ahead of schedule,” according to the board.

Assuming that’s the timeline that’s adhered, 2026 would be the earliest at which ground could be broken new gaming venues, meaning it could be several years before they’re fully operational.

Why Speeding Up NYC Casino Licenses Makes Senses

By not swiftly moving to speed up the licensing process, New York is delaying receipt of millions of dollars in application fees not to mention $500 million per winning bidder — a figure some experts believe could drift as high as $1 billion per license.

It’s possible that if final approval of the three downstate casino licenses arrives at the end of 2025, MGM Resorts International’s Empire City Casino in Yonkers and Genting’s Resorts World New York in Queens could establish a lead over a third rival assuming those venues are selected for two of the permits.

Those properties are already operational as slots-only venues with both ranking among the highest-grossing regional casinos in the country. The operators have promised major enhancements if they’re awarded traditional casino licenses and that is the outcome, Genting and MGM can likely add some table games and other amenities without significant disruptions to day-to-day business.