The Downstate Casino Licensing Conundrum: A Suspenseful Standoff in New York Politics
Legislation intended to fast-track the bidding process for downstate casino licenses in New York has seemingly hit a brick wall. Insiders and political analysts unanimously concur that the bill is essentially a dead duck. Conceived to accelerate the submission of bids by late August 2024, the bill now languishes in legislative purgatory, with Gov. Kathy Hochul standing resolutely idle. As the clock runs out, the bill finds itself in a precarious situation, likely to expire silently.
Governor’s Inaction Casts a Shadow Over the Casino License Bill
Crafted by the dynamic duo of Senator Joseph Addabbo (D-Queens) and Assemblyman Gary Pretlow (D-Mount Vernon), the bill set an ambitious deadline of August 31 for potential casino operators to throw their hats in the ring for three coveted licenses in the New York City area. But with August nearing its end and no signal from the governor’s office, it’s become painfully clear that the bill is circling the drain.
A seasoned voice in the gambling realm, Bennet Liebman, a government law professor and former member of the New York State Racing and Wagering Commission, remarked on the sheer implausibility of expecting developers to concoct multi-billion-dollar proposals in a mere matter of weeks. “It’s like asking a poker player to go all in with a hand they haven’t even seen,” Liebman reportedly quipped. His words echoed throughout the industry, reported on Newsday, highlighting the impracticality of such a tight deadline.
Meanwhile, the governor’s silence speaks volumes. Many speculate that her administration favors the schedule set by the state’s Gaming Facility Location Board, granting companies until June 2025 to polish their bids to a high shine.
The sentiment was shared by Michael Hershman, CEO of the Soloviev Group, a major player planning to vie for a casino license. Hershman indicated that the bill’s inactivity signals a clear preference for the 2025 deadline, deemed more reasonable for both applicants and regulators. “Rushing to the table only sets you up for a bad hand,” he implied, highlighting the need for meticulous preparation.
Extended Timeline: A Double-Edged Sword for New York State’s Revenue Pot
The protracted timeline has left some lawmakers, particularly Pretlow, venting their frustrations. Extending the process until the tail end of 2025 feels like a drawn-out rerun of a bad poker game. Yet, the bill may have served a purpose by nudging the Gaming Facility Location Board into setting definitive deadlines. Prior to the bill’s introduction, the Board’s hesitation was chalked up to unresolved zoning issues in New York City.
If the current roadmap holds, casino companies have until June 2025 to stake their claims, with final decisions anticipated by December 2025. Breaking ground on new casinos wouldn’t happen until 2026 at the earliest, pushing the grand openings further down the road.
This delay spells potential trouble for New York State’s coffers. By holding off on bids, the state not only postpones receiving hefty application fees but also delays the colossal licensing fees, estimated to range from $500 million to a staggering $1 billion per casino.
Ironically, this drawn-out process could be an ace in the hole for established venues that already host slot machines. Casinos like MGM’s Empire City Casino in Yonkers and Genting’s Resorts World in Queens might find themselves with a head start if they secure bids, transitioning swiftly to full-fledged casinos and stealing the march on new entrants.
In a high-stakes game where every move counts, the downstate casino licensing saga continues to unfurl, with drama, disappointment, and anticipation all woven into the fabric of New York’s political and gambling landscape. How this hand plays out remains anyone’s guess, but one thing is certain: the stakes have never been higher.
