New York Prepares to Decide Fate of Long-Standing Casino License Contest
State Approaches Critical Decision in Lengthy Casino License Competition
New York City is on the verge of concluding its prolonged competition to award casino licenses. On Monday, state regulators are scheduled to cast their votes to determine the outcome, a decision that has garnered considerable public interest.
Contest Narrows to Three Final Applicants Amid Financial Pressures
Over the years, the casino license competition has been marked by neighborhood opposition, shifts in political climate, and numerous bidders entering and exiting the race. Currently, only three contenders remain, though none have secured a definitive win as the decision approaches.
The Gaming Facility Location Board, a five-member panel, holds the responsibility of selecting up to three license recipients for casinos downstate. They are not obligated to award all available licenses, but given the state’s pressing budget challenges, there is motivation to do so. Each license comes with a required payment of $500 million plus a similar amount in development costs, funds critical to Albany’s financial needs.
Distinct Proposals Representing Key City Areas
The final applications come from three separate locations within New York City. In Queens, Mets owner Steve Cohen is partnering with Hard Rock to develop an ambitious project that would transform the extensive parking lots around Citi Field into a resort complex. The highlight of this plan is a casino, complemented by a live entertainment venue and a food hall. This proposal has drawn strong interest from business stakeholders but has also faced resistance from local residents worried about traffic and congestion.
Tax and Zoning Issues Shape the Race’s Climax
Queens also hosts Resorts World, which currently operates electronic gaming at Aqueduct Racetrack. Lately, the company has highlighted concerns over its tax arrangement, which is substantially higher than those faced by competitors. Sources indicate Resorts World is advocating for a more equitable tax framework, either through reductions for itself or increases for others. The company has committed to significant improvements at its site, including the introduction of table games and expanded facilities.
Meanwhile, Bally’s, the third finalist, is planning a large casino and hotel adjacent to its Ferry Point golf course in the Bronx. The project successfully navigated a rigorous zoning approval process earlier in the year with assistance from city officials. Bally’s chairman, Soo Kim, has privately expressed optimism about their proposal, believing their plan is strong. If awarded a license, Bally’s will be required to pay additional sums to former golf course owners, based on a previous agreement made two years prior.
Next Steps and Ongoing Uncertainty
Following the Monday vote, the state Gaming Commission will undertake a thorough review of the financial backgrounds and legal standing of the successful applicants before issuing their licenses. This process could finally bring an end to the decade-long contest. However, given New York’s history with casino developments, unexpected developments and last-minute surprises remain possible.
