The newly approved legislation establishes a definite deadline for awarding casino licenses in New York. This bill has successfully navigated both the Senate and Assembly, and now awaits the final endorsement from Governor Kathy Hochul.
The state senators cast their votes, with a decisive majority of 51-4 approving SB 9673 on June 7. This was followed by the Assembly's endorsement, which saw the bill passed with a 51-9 margin. The measure, championed by Sen. Joe Addabbo, aims to set a deadline for the selection of three casino locations in the downstate region of New York. The New York legislature had initially planned to conclude its session on June 6, but extended its stay to ensure the bill's consideration and passage.
The New York Gaming Facility Location Board has been tasked with advising on the selection of downstate casinos by the end of 2025, as per an amendment introduced by Addabbo. This final deadline for issuing the licenses is set for March 31, 2026. Addabbo's initial proposal, presented just two weeks before the legislative session concluded, had aimed for a much earlier timeline, with a deadline a full year sooner.
The proposed legislation, SB9673, provides a pathway for developers to apply for casino licenses even as they work through land-related matters. This could potentially accelerate the timeline, as the application deadline is set for August 31st of the current year, well before the March 2026 target date. This expedited process gives developers an opportunity to make progress on their projects sooner than the originally established deadline.
Analysts predict that the construction of three new casinos could generate substantial revenue through licensing fees. They estimate that developers might be willing to invest up to $1 billion for each casino license, potentially resulting in a total of $3 billion in license fees.
Hochul will probably approve the legislation without much scrutiny, as she has previously voiced support for expanding retail casino operations.
Let's Move New York Casinos
Talks about granting up to three casino licenses in the downstate area have been going on for three years, but the process has been at a standstill since October. That's when the New York Gaming Facility Location Board reviewed a second round of questions from potential bidders interested in one of the licenses.
The first round of inquiries was presented in February 2023 and subsequently addressed in August. The board provided insights into significant factors, including the ability of any company awarded one of the downstate casino licenses to incorporate a retail sportsbook as part of the property.
The initial license fee is set at a minimum of $500 million, approximately half of the anticipated final value, as per Addabbo's estimation. Additionally, there is a minimum capital investment requirement of $500 million for the construction of the facility, excluding expenses related to consultation and lobbying.
New York recently initiated the bidding procedure for three commercial gambling establishments last year. Well-known entities such as MGM Resorts International, Caesars Entertainment, and Hard Rock International have presented preliminary proposals for a casino in the downstate region.
The journey towards progress has been incredibly slow. Alongside the concerns around land usage, the in-depth examinations into the environmental impact of the new developments are not expected to be completed until the early stages of the upcoming year, as stated by Robert Williams in March, the executive director of the New York State Gaming Commission. Should the findings of these reviews necessitate alterations from the applicants, it will only serve to prolong the process even further.
The Commission encourages applicants to use the rest of 2024 to verify their proposals comply with all the necessary criteria, preventing future changes and postponements.
