The landscape of downstate New York is on the cusp of a transformative shift with the potential introduction of three new casino facilities. This development has been driven by the New York State Gaming Facility Location Board, which recently set a new bid deadline for June 27, 2025.
However, a new bill is awaiting the signature of Governor Kathy Hochul that could accelerate this timeline significantly. Crafted by Senator Joe Addabbo and designated as S9673A, the bill stipulates that all proposals must be submitted by August 31, 2024, potentially overriding the facility location board's current deadline.
The proposed legislation, which passed both the house and senate in early June, has raised eyebrows and concerns within the board. "Politicians may want a quicker deadline, but that would be impractical," noted Vicki Been, expressing the board's reservations about the ambitious timeline.
A Balancing Act
The facility location board's decision to push the bid deadline to mid-2025 was grounded in procedural and regulatory needs. Bids cannot be reviewed until all 'entitlements and zoning' are approved, a process that includes critical steps such as environmental impact studies and necessary zoning changes.
The Bally’s Bronx proposal and Steve Cohen’s Queens proposal, for instance, require rezoning from their current parkland designations to accommodate casino facilities. This adds another layer of complexity and time to the already intricate approval process.
The board articulated its concerns clearly, stating, "Because bids cannot be reviewed until all 'entitlements and zoning' are approved, the board views the current deadline as unreasonable." Vicki Been reiterated this perspective, adding, "The hope would be that our reasoning will be helpful to the governor."
High Stakes Bidding War
Despite these procedural hurdles, there is no shortage of competing interests eager to stake their claim on what could be some of the most lucrative real estate in New York. A total of 11 bidders are vying to develop casinos in prime locations, from Times Square to Brooklyn, featuring a mix of commercial and tribal operators.
The proposals are as diverse as they are ambitious, each aiming to bring more than just gambling facilities to the table. They include resorts, housing units, and various neighborhood improvements. Notable bids 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.
Looking Forward
The board remains optimistic that the decision to set a later bid deadline will not impede the broader goal of issuing licenses by the end of 2025. However, if Governor Hochul signs S9673A, bidders will be under pressure to navigate the complicated approval and zoning processes much more quickly.
Whichever timeline prevails, the stakes remain incredibly high. The successful bids will not only reshape the entertainment and economic landscape of downstate New York but will also bring considerable development projects to some of the state's most iconic areas.
As the debate unfolds, one thing is clear: whether by mid-2024 or mid-2025, the introduction of new casino facilities in downstate New York is a game-changer, poised to leave a lasting impact on the region.