The Future of Casinos in Downstate New York

The evolving landscape of downstate New York could soon witness the debut of three new casino facilities, marking a transformative chapter in the region's entertainment and economic narrative.

The New York State Gaming Facility Location Board recently announced a pivotal decision to set a new bid deadline for prospective casino developments to June 27, 2025. This decision stands at the crossroads of legislative action and local governance, as a bill currently awaits Governor Kathy Hochul’s signature that could significantly alter this timeline.

A Legislative Tug-of-War

Authored by Senator Joe Addabbo, the bill S9673A proposes an earlier deadline of August 31, 2024, effectively curtailing the board’s extended timeline by nearly a year. Having sailed through both the house and senate earlier in June, the bill positions itself as a counterpoint to the board's carefully considered schedule.

Should Governor Hochul sign this legislation, it would supersede the facility location board's decision, compelling bidders to expedite their proposals by the end of summer 2024.

Voices of Concern

The New York State Gaming Facility Location Board, however, has expressed trepidation over the accelerated timeline dictated by the bill. As noted by the board, “Bids cannot be reviewed until all ‘entitlements and zoning’ are approved,” a process that includes extensive environmental impact studies and critical zoning changes. These prerequisites must be meticulously navigated before any bid can be formally assessed.

Vicki Been, a notable voice in the discussion, highlighted this sentiment, stating, “Politicians may want a quicker deadline, but that would be impractical.” She further added, “The hope would be that our reasoning will be helpful to the governor.”

Rezoning Challenges and Proposals

Among the 11 contenders vying for the opportunity to bring casino facilities to prime locations from Times Square to Brooklyn, several proposals hinge on significant zoning reevaluations. For instance, the Bally’s Bronx proposal and Steve Cohen’s Queens proposal necessitate a transition from their current parkland designations to areas accommodating casino operations. These zoning hurdles underscore the board's view that the current legislative push may impose an unreasonable burden on the timeline.

Diverse Aspirations

The proposals themselves display a rich tapestry of ambitions, encompassing not just gaming establishments but also resorts, housing complexes, and neighborhood enhancements. The array of complications is matched only by the host of commercial and tribal operators involved, each bringing a unique vision to the table:

  • 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.

A Path Forward

Despite the potential legislative clash, the facility location board remains optimistic. During their recent meeting, board members acknowledged the conflict between their extended deadline and the stipulations set forth by S9673A. Nevertheless, they believe that their established deadline will not impede the broader objective of issuing licenses by the close of 2025.

The incorporation of new casinos promises to redefine downstate New York, weaving gaming into the fabric of some of the state's most storied locales. As the process unfolds, stakeholders and observers alike will be keenly watching whether the legislative or procedural timelines will ultimately steer this ambitious endeavor.