The New York State Gaming Facility Location Board has approved a new bid deadline of June 27, 2025, for three downstate casinos. Despite the passing of Sen. Joseph Addabbo’s bill (S9673A) which carries with it an August 31, 2024 deadline and is awaiting Governor Kathy Hochul’s signature, the board made this decision.
The New York Gaming Facility Location Board is responsible for overseeing commercial casino licensing in downstate New York.
Board members, including the new Chair Vicki Been, expressed concerns that the August 2024 deadline would create undue pressure for potential applicants and could favor some over others. In contrast, the June 2025 deadline allows ample time for applicants to prepare, while still ensuring thorough consideration by the board before their approval deadline of December 31, 2025.
Senator Addabbo’s bill passed through the House and Senate in early June.
11 Bidders Vying for Three Licenses
Under New York law, three downstate casinos—brick-and-mortar facilities located in and around New York City—are permitted. Currently, 11 bidders are vying to establish casinos, with proposed locations ranging from Times Square to Brooklyn. These bidders are enticing support by offering resorts, housing units, and neighborhood enhancements.
But the process has been long and slow. It started in January 2023, when the New York State Gaming Commission opened the bidding process.
Applicants seeking casino licenses must adhere to environmental standards mandated by the State/City Environmental Quality Review Act (SEQR).
The Commission, while addressing land use concerns, is conducting extensive reviews of the environmental impact associated with the new properties. Executive Director Robert Williams is already on record as saying these reviews are unlikely to conclude before the first quarter of next year, or possibly even longer.
Applicants Preparing Their Proposals for Commission
Applicants have been encouraged (by the commission) to use the remainder of this year to ensure their proposals comply with all regulatory requirements, thus avoiding additional delays.
Notable operators, including MGM Resorts International, Wynn Resorts, Las Vegas Sands, and Caesars Entertainment, have already outlined their initial plans.
The list of proposals for the casino licenses includes both commercial and tribal operators.
The deadline extension is viewed as a way to give bidding entities ample time to meet the requirements and ensure a thorough and effective selection process.
Downstate Casinos Expected To Bring in Big Bucks
In addition to meeting all requirements, aspiring license holders must be prepared to pay up.
The New York Gaming Facility Location Board will allow companies with downstate casino licenses to include a retail sportsbook on their properties.
To secure such a license, companies must pay an initial fee of at least $500 million and invest a minimum of $500 million in capital expenditures for facility construction (excluding consultation and lobbying fees). Senator Addabbo estimates that bidders could earn up to $1 billion per license, potentially generating a total of $3 billion in license fees from the three new casinos.
The bottom line is, that as long as this process has been taking, things seem to be picking up. Although the deadline is a little deeper than some had hoped, at least everyone can see a light at the end of the tunnel, even if it ends up being a little further away.
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