New York State Moves Forward with Downstate Casino Bids Amid Legislative Uncertainty
The landscape of downstate New York may soon undergo significant changes with the introduction of three new casino facilities. On Thursday, the New York State Gaming Facility Location Board made a crucial decision by setting a new bid deadline for these casinos to June 27, 2025. This decision comes amid legislative complexities and a backdrop of pressing timelines.
Legislative Moves and the Governor's Role
A bill with a deadline of August 31, 2024, is currently awaiting Governor Kathy Hochul’s signature. If signed, this legislation would override the facility location board’s decision and require bidders to submit their proposals by the end of summer 2024. This has led to a contention between board members and legislators over what is deemed a practical timeline. Board chair Vicki Been expressed her concerns succinctly, saying, “Politicians may want a quicker deadline, but that would be impractical.”
The bill, known as S9673A and authored by Senator Joe Addabbo, had previously passed through both the house and senate in early June. However, Governor Hochul has yet to provide her endorsement.
Concerns Over Tight Deadlines
The facility location board has voiced its concerns about the ambitious timeline dictated by the bill. “Because bids cannot be reviewed until all ‘entitlements and zoning’ are approved, the board views the current deadline as unreasonable,” the board noted. Environmental impact studies and necessary zoning changes are preconditions that must be met before any bid can be reviewed. For instance, the Bally’s Bronx proposal and Steve Cohen’s Queens proposal currently require rezoning from their parkland designations to accommodate casino facilities.
Board chair Vicki Been elaborated on the board’s stance, saying, “The hope would be that our reasoning will be helpful to the governor.”
Array of Proposals
The race to secure one of the three licenses has attracted considerable interest, with 11 bidders competing to develop casinos in various prime locations, from Times Square to Brooklyn. These bidders are putting forth comprehensive proposals that include not only casino facilities but also resorts, housing units, and neighborhood improvements in a bid to garner support from local communities and officials.
The proposals feature a mix of commercial and tribal operators. Highlights include:
- Avenir: Silverstein Properties and Greenwood Gaming in Manhattan.
- Bally’s Links at Ferry Point: Bally’s Corporation in The Bronx.
- Caesars Palace Times Square: Caesars Entertainment, SL Green, and Roc Nation in Manhattan.
- Coney Project: Thor Equities, Legends Entertainment, the Chickasaw Nation, Saratoga Casino Holdings in Brooklyn.
- Freedom Plaza: Soloviev Group and Mohegan Gaming in Manhattan.
- Metropolitan Park: Steven Cohen and Hard Rock International in Queens.
- MGM Empire City: MGM Resorts International in Yonkers.
- Resorts World New York City: Genting Group in Queens.
- Sands New York: Las Vegas Sands in Nassau County, Long Island.
- Saks Fifth Avenue: Hudson’s Bay Company, with the operator to be determined, in Manhattan.
- Wynn New York City: Related Companies, Oxford Properties Group, and Wynn Resorts in Manhattan.
Awaiting Official Moves
The board members recognized the potential conflict between their decision and the stipulations of S9673A during their meeting on Thursday. Should Hochul sign the bill, it would effectively usurp the facility location board’s decision, as pointed out by board member Stuart Rabinowitz.
Nonetheless, the board remains optimistic that obtaining bids by the new deadline will not hamper the overarching goal of issuing licenses by the end of 2025.
As the deadline debates continue, the future of these proposed casino facilities hangs in the balance, awaiting Governor Hochul's pivotal decision. The outcome could reshape the entertainment and economic landscape of downstate New York, bringing gaming and broader development projects into some of the state's most iconic areas.