Will NYC Mayor Eric Adams’ Indictment Impact New York’s Casino Review Process?

Posted on: September 26, 2024, 06:51h. 

Last updated on: September 26, 2024, 10:06h.

Ed Silverstein @casinoorgedsilv Read More

Expertise: Legal, Tribal Gaming.

New York City Mayor Eric Adams has been indicted by a federal grand jury as debate continues over controversial proposals to open casinos in and around America’s largest city.

Even though Adams, a Democrat, doesn’t have final say on the assignment of the highly-coveted casino licenses, he does play a key formal role — as well as informal roles — in the review process.

For each casino application submitted, the New York City mayor is a member of a Community Advisory Committee (CAC) that reviews the application, gauges local support, and reports whether there’s adequate backing for the project. The report is then sent to the state’s Gaming Facility Location Board, which has final say.

The state plans to approve three downstate locations for commercial gaming properties by the end of next year. There are a dozen proposals so far.

Some of the potential locations include Citi Field in Queens, Coney Island in Brooklyn, as well as several Manhattan locations, such as Hudson Yards, Times Square, and Fifth Avenue.

The Citi Field proposal comes from Steve Cohen, owner of the New York Mets and CEO of Point72 Asset Management, a Connecticut-based hedge fund.

In 2021, Cohen contributed “millions to a pro-Adams super PAC,” the New York Post reported.

As mayor, Adams also has informal influence over the process. For instance, he backed a proposal that would streamline zoning reviews. In April, New York’s City Council approved Adams’ proposal of having gaming properties be located in the city’s manufacturing districts and within nearly all commercial areas, with no barriers as to their size.

Indictment to Be Released

Details on the recent federal allegations against Adams are expected to be released on Thursday by US Attorney Damian Williams. There’s no indication so far that the indictment includes any references to casinos.

It’s been widely reported the indictment relates to improper campaign contributions, such as how the government of Turkey allegedly sent money to Adams’ campaign.

The indictment doesn’t come as a major surprise given how the feds had seized Adams’ phone and iPad, and recently searched the home of several of his aides and top city officials.

Soon after news broke of the indictment on Wednesday evening, Adams released a video proclaiming his innocence.

I always knew that if I stood my ground for New Yorkers that I would be a target — and a target I became. If I am charged, I am innocent and I will fight this with every ounce of my strength and spirit,” Adams declared.

Supporters argue Adams has been singled out because he’s been opposed to much of the Biden administration’s migrant policy.

Replacement for Adams

If Adams resigns from office before a special election is held, Public Advocate Jumaane Williams would be given the post of acting mayor. He’s considered a political progressive, and it’s unclear where he stands on casinos in New York City.

If Williams can’t take over, next in line is Comptroller Brad Lander, who has already announced he will run for mayor next year. Adams plans to run for re-election in 2025.

Prior Gambling Controversy

This week’s news brings to mind how Adams allegedly tipped off his now-former buildings commissioner, Eric Ulrich, about a probe from the Manhattan district attorney’s office regarding a gambling investigation, according to the New York Daily News.

Ulrich resigned in November 2022 after the office of Manhattan District Attorney Alvin Bragg searched Ulrich’s Queens home.

Ulrich reportedly told prosecutors that Adams told him to “watch your back and watch your phones” in May 2022.

A probe was reportedly focused on a Queens businessman, Joseph Livreri, whose Ozone Park pizzeria, Aldo’s, allegedly served as a front for an illegal gambling operation. Livreri also allegedly ran unlicensed card games and gambling machines out of his 101 Café in Ozone Park.