The push to get casinos up and running in downstate New York took a big step forward.
The New York State Legislature has passed a bill setting a firm deadline for the downstate casino licensing process. The Senate voted 51-4 in favor of SB 9673 on June 7, followed by a 51-9 Assembly approval. The bill now awaits Governor Kathy Hochul’s signature.
Lawmakers even extended its session to ensure the bill’s passage. It was supposed to end June 6th. This move underscores the importance of the casino licensing process to the state’s economic and regulatory agenda.
Upcoming Deadlines and Provisions for New York Casino Licenses
Introduced by Senator Joe Addabbo, the bill mandates the New York Gaming Facility Location Board to recommend locations for three downstate casinos by December 31, 2025.
This timeline is a year later than Addabbo’s original proposal, which sought a deadline at some point this year.
That being said, developers hoping to secure a casino license in downstate New York must submit their applications by August 31st of this year. The final date for the issuance of licenses is set for March 31, 2026.
SB9673 also provides a provision that permits developers to apply for licenses even if they are still addressing land use concerns. This ensures that the licensing process remains uninterrupted while land-related negotiations are underway.
Environmental Standards and Contenders for Casino Licenses
The bidding process for the three commercial casino licenses opened in January of 2023.
The progress has crawled since then. The New York State Gaming Commission, along with addressing the land use question, is conducting prolonged reviews on the environmental implications of the new properties.
Executive Director Robert Williams stated in March that these reviews are unlikely to conclude before the first quarter of next year. Should the review results necessitate changes from the applicants, it will cause further delays.
Applicants seeking casino licenses must comply with environmental standards mandated by the State/City Environmental Quality Review Act (SEQR). Currently, 11 contenders are vying for the licenses. Notable operators such as MGM Resorts International, Wynn Resorts, Las Vegas Sands, and Caesars Entertainment have already outlined their initial plans.
The New York State Gaming Commission urges applicants to use the remainder of 2024 to ensure their proposals comply with all regulatory requirements, thereby avoiding further delays.
Licensing Fees Expected To Be High
In addition to meeting all of the requirements, anyone hoping to secure a license better bring their wallet.
That’s because the New York Gaming Facility Location Board clarified that companies receiving a downstate casino license may include a retail sportsbook from top sportsbooks in their properties. They must pay an initial license fee of at least $500 million and spend a minimum of $500 million on capital expenditures to construct the facility, not including consultation and lobbying fees.
Senator Addabbo estimates that bidders could fetch up to $1 billion for each license, potentially generating up to $3 billion in license fees from the three new casinos.
Calculators
