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Sunday, May 19, 2024

NEW YORK: Legislators Urge for the Acceleration of Casino Licensing Process



New York state legislators are eager to push forward the process of awarding casino licenses in the New York City vicinity, throwing support behind legislation that would expedite the current casino licensing schedule.

Sen. Joseph Addabbo (D-Queens) and Assemblyman Gary Pretlow (D-Mount Vernon) have advocated for a bill during the closing period of the legislative session that would require the submission of bids for the three gaming licenses to be due by July 31 of this year. Additionally, the proposal demands that the state gaming commission grant these licenses by March 31 of the following year.

Contrarily, the state gaming commission had previously disclosed that the licenses wouldn’t be granted until Dec. 31, 2025. This announcement has incited criticism from high-ranking casino executives, including those from Sands who aspire to construct a casino at the Nassau Coliseum hub on Long Island.

There are suggestions from certain sources within the industry that this protracted timeline potentially favors bidders who are grappling with political opposition or ongoing issues related to zoning or land-use.

Candidates such as Mets owner Steve Cohen, who envisions creating an $8 billion casino and entertainment complex next to Queens’ Citi Field, and the Related Companies/Caesars, which proposes a $12 billion casino/office tower combination in Manhattan’s Hudson Yards, may find such a timeline advantageous.

The proposed expedited timeline tends to be more beneficial for pre-existing slot parlors like Resorts World at the Aqueduct race track and MGM Empire City at Yonkers raceway, who are striving to convert their current operations by adding live card table games.

Addabbo and Pretlow assert that they are not attempting to skew the process in anyone’s favor.

They claim their motivation is to expedite job creation and to bolster the state’s revenue stream significantly.

“Delays and inefficiencies plague the current process,” declared Addabbo, whose electoral district encompasses Genting’s Resorts World betting parlor at Aqueduct.

“Prompt action is necessary and at least 5,000 jobs are tied up in the approval process,” he added.

Each candidate for a license would be required to pay the state an upfront fee of at least $500 million.

Addabbo highlighted that the new legislation would allow a two-year window for the resolution of any legal or land-use matters. Nevertheless, it remains uncertain whether local siting boards would recommend any bids with unresolved issues to the gaming commission.

For instance, Cohen’s bid would necessitate the New York state legislature to pass a law reclassifying the vacant property surrounding Citi Field from parkland to commercial use to accommodate his casino development.

As of yet, State Sen. Jessica Ramos (D-Queens), who governs over Willets Point where Cohen’s proposed casino would be located, has not introduced the necessary bill nor expressed support for the initiative.

“Efforts have been made to accelerate this endeavor, but the protracted process means we’re foregoing $2 billion,” stated Pretlow, whose district includes the Yonkers racino.

“The drawn-out timeline feels counterproductive. Let’s stop treading water here,” he continued.

Governor Kathy Hochul’s stance remains tentative regarding fast-tracking the casino licensing process.

“Governor Hochul will take into consideration any legislation that gains approval by both houses of the legislature,” a representative relayed to The Post.

The governor is slated for re-election in 2026.

Other notable casino proposals comprise those by SL Green/Caesars/Roc Nation for Times Square, Bally’s at Ferry Point in The Bronx, Silverstein Properties in Hell’s Kitchen, and the Thor Equity consortium, which hopes to establish a gaming resort on the Coney Island boardwalk.

FAQ Section

Why are New York state legislators pushing for faster casino licensing?

Sen. Joseph Addabbo and Assemblyman Gary Pretlow argue that the current timeline is inefficient, and by expediting the licensing process, the state could benefit from thousands of additional jobs and billions in revenue sooner.

What is the current timetable for casino licensing in New York?

The state gaming commission has stated that licenses won’t be awarded until December 31, 2025. The proposed bill aims to move this forward, with bids due by July 31 this year and licenses awarded by March 31 the next year.

What businesses could benefit from a faster timeline?

Current slot parlors like Resorts World and MGM Empire City looking to add live table games could benefit, as they already have facilities and would only need expansion. Traditional bidders facing political or zoning issues may find a longer timeline more beneficial.

Are any officials opposing the accelerated process?

It’s not clear if there’s outright opposition, but Gov. Kathy Hochul has not yet committed to speeding up the process, and State Sen. Jessica Ramos has not introduced the required bill for the casino near Citi Field.

What are the financial implications of delaying casino licenses?

Sen. Addabbo and Assemblyman Pretlow believe that the delay in licensing is costing the state an opportunity to gain an estimated $2 billion in revenue. Companies vying for the licenses would each pay a minimum of $500 million upfront.

Conclusion

The discussion to accelerate the casino licensing process in New York reflects the desire of state legislators to capitalize on significant economic opportunities. While the expedited timeline is driven by the potential creation of jobs and additional state revenue, the outcome will hinge on the balance between swift action and careful consideration of the complexities involved in such large-scale developments. With multiple high-profile proposals on the table and significant financial stakes, the debate over the timing of licensing decisions is set to be a critical issue for New York’s economic future.

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