New York Gaming Facility Location Board Provides Update on Downstate Casinos
On Thursday, the New York State Gaming Facility Location Board released a revised schedule for the release of the three concessions from the downstate casinos.
2013 saw a referendum by the people of New York in favor of changing the state constitution to allow for commercial casinos modeled after Las Vegas. Four upstate and three downstate casinos were approved by the vote; however, the downstate concessions were postponed for ten years in order to give the upstate establishments more time to build their clientele.
Now that the downstate licensing freeze has ended, numerous potential developers have prepared multibillion-dollar offers. The licenses were initially supposed to be issued this year, but the state agency acknowledged in March that the process would probably take until late 2025. As a result, numerous state politicians have encouraged the State Gaming Facility Location Board and Gov. Kathy Hochul (D) to speed the process.
Regarding the anticipated grant date for the sought downstate licenses, the board amended its guidelines. The announcement won't be well received by those who want to open the resorts as soon as possible.
Details in the Downstate
The downstate license applications must be submitted by June 27, 2025, according to the New York State Gaming Facility Location Board. A six-member Community Advisory Committee (CAC) including Hochul, New York City Mayor Eric Adams (D), the borough president, and the relevant state senator, assemblymember, and city councilor will be assigned to each qualified bid.
All casino proposals need to get the CAC's approval before September 30, 2025. After receiving support from the CAC, the Gaming Facility Location Board said it will evaluate the bids received in October and November and announce the winners by December 1, 2025.
By December 31, 2025, winning casino proposals must pay the state their $500 million license fees.
"This timeline encompasses all legal requirements that potential bidders must meet before we may evaluate applications,” said Board Chair Vicki Been. “This roadmap also gives communities ample opportunity to have their voices heard, establishes a level playing field among multiple competitors, and affords serious applicants the opportunity to participate in a lucrative and transformational process.”
The Gaming Facility Location Board stated that in addition to receiving a CAC endorsement, each casino applicant needs to finish all entitlement procedures, including getting zoning signoffs and land-use permits. The Board claims that by delaying the application deadline to June 27, 2025, many bidders who are still working to obtain local permissions for their gaming resort projects will have an even playing field.
“At least four publicly known potential applicants are not currently able to avail themselves of the zoning change due to specific requirements not covered by the amendment, including mapping changes, grading, or revocable consent to construct over streets. The New York City Department of City Planning has advised the Board that the four impacted entities expect to emerge from the zoning (ULURP) process by the end of June 2025,” the Board explained.
Environmental Assessment Difficult
The State Environmental Quality Review is another requirement the Board imposed to bids.
"SEQR process is lengthy, with the purpose to identify any potential adverse environmental effects of proposed actions, assesses their significance, and propose measures to eliminate or mitigate significant impacts,” the Board release explained. “Applicants are expected to be substantially complete with the environmental reviews by the end of June 2025.”
The leading candidates for two of the licenses that would enable their respective video lottery racinos, Resorts World in Queens and Empire City in Yonkers, to transform into full-fledged casinos including live dealer table games, sportsbooks, and slots akin to those in Las Vegas are MGM Resorts and Genting. Other businesses like Hard Rock International, Wynn Resorts, Las Vegas Sands, Bally's, Mohegan, and Caesars Entertainment are all working on downstate proposals.