New York casino license process and key challenges

Since launching online sports betting more than three years ago on January 8, 2022, New York has become the largest betting market in the United States. In addition to online and retail sports betting, the state has nearly three dozen commercial and tribal casinos which according to data from the American Gaming Association support close to 70,000 jobs and have an economic impact of $16.26bn.

While there are plenty of casinos across the state, in 2022, the New York State budget greenlighted a process that is ultimately expected to bring three New York casino licenses.

An estimate by Sen. Joseph Addabbo suggested the three new downstate casino licenses would generate $1.5bn in revenue to the state, providing vital "educational funding and improvements to problem gambling programs," Vixio reported in 2022.

While several years have passed since the process of awarding the three new licenses is complex and time-consuming. A current timeline suggests that the three new licenses are expected to be secured by successful bidders by the end of this year.

Each New York casino license is expected to bring benefits, economic stimulus

With only three new NY downstate casino licenses up for grabs, nearly a dozen operators and coalitions have shown interest in winning one. There are several proposed locations that may be affected by a new casino development, including Manhattan, Queens, Bronx, Brooklyn, Westchester and Long Island.

With applications due near the end of June this year, bidders have a long road ahead of them before winning one of the coveted casino licenses.

As noted, the New York casino license decision is expected to be granted by the end of the year and so far, efforts to speed up that process have failed. Notably, last summer, lawmakers greenlighted a bill proposing to expedite the process, permitting interested bidders to file their casino proposals in August even without securing the required zoning and other relevant approvals.

However, as announced by the New York Post, Gov. Kathy Hochul vetoed the proposal that would have expedited the process. In her decision, the Governor explained that changes to the timeline for NY downstate casino license applications "would likely have the impact of helping certain bidders and hurting others."

Despite the lengthy process, each New York casino license is expected to generate significant proceeds for the state. Besides an upfront licensing fee of $500 million, casino licensees would also be subject to taxes on their gambling revenue.

But it's not only taxes and license fees that are expected to benefit the state and areas where the casinos are located. This is because the projects also focus on the positive economic development of the areas where they are located. Supporters of the projects argue that large-scale casino resorts can revitalize the regions where they are being built, helping local businesses and communities flourish.

NY downstate casino license bidding competition grows

A number of recognizable gaming and hospitality companies have demonstrated interest in securing one of the coveted casino licenses in New York. While some have announced a preliminary estimated cost for their future proposal, others prefer to keep this information confidential, at least until filing officially a bid with the New York State Gaming Facility Location Board, the agency responsible for reviewing the casino applications.

Interest in Times Square, Manhattan casino was demonstrated by Caesars Entertainment, the recognizable hospitality and gaming company, which joined forces with SL Green and Roc Nation, an entertainment agency founded by the iconic singer, Jay-Z. Planning to bring a casino to Times Square, the initial estimate of the project is $4bn.

Other notable bidders for a casino license are Wynn Resorts and Related Companies. The duo joined forces with the goal of establishing a mixed-use complex at Hudson Yards in Manhattan. As a mixed-use development, the complex would feature a casino, along with other amenities and has a price tag of the mind-blowing sum of $12bn.

Billionaire Stefan Soloviev, in collaboration with Mohegan Sun, also eyes one of the much-wanted casino licenses. Their proposal is called Freedom Plaza and its proposed site is Midtown East River in Manhattan. Besides luxury hotel accommodation and apartment buildings, the project is expected to offer a casino, as well as a "Freedom Museum."

On the other hand, Las Vegas Sands also eyes potential presence in Long Island with a development called Sands New York. The project proposes using the site at Nassau Coliseum, which would be converted to a hotel and casino resort. Further amenities are likely to include meeting and convention spaces, as well as dining outlets.

A number of recognizable hospitality and gaming giants are interested in securing a NY downstate casino license.

Besides new development, some of the likely bidders are considering redeveloping existing properties. That applies to MGM Resorts International. The company anticipates overhauling its Empire City Casino located in Yonkers, Westchester. If MGM Resorts secures NY downstate casino license, it would effectively have a full gaming license.

Similarly to MGM Resorts, Genting also anticipates overhauling its existing Resorts World Casino. Should the company win one of the three NY downstate casino licenses, it plans to improve its casino in Aqueduct, Queens, with the addition of table games.

Currently, Resorts World Casino offers slots only but if Genting wins one of the licenses, it would be able to bring live table games. The company's project is estimated at $5bn, and besides expanding its casino floor offering, the project proposes the development of a new facility that can be used for events, including concerts and other gatherings.

Another recognizable company that will likely participate in the race for one New York casino license is Bally's Corporation. The company acquired the former Trump Golf Links, a golf course at Ferry Point back in 2023.

This was seen as a major step in its plan to use the site for a massive project that would feature a casino, luxury hotel accommodation, meeting and convention space, new and improved golf amenities, as well as a range of bars, restaurants and other outlets. While Bally's will likely be one of the bidders, the company hasn't disclosed an estimated cost for its project.

New York casino license decision is expected by the end of the year

Despite the strong interest in the new downstate casino licenses, the selection process has been rather slow. A casino application deadline was set by the New York State Gaming Facility Location Board, the body in charge of reviewing the casino bids, for June 27, 2025.

Ahead of submitting a casino license bid, each applicant needs to secure all relevant approvals, including zoning, environmental and other permissions. Once the deadline is reached, the Community Advisory Committees (CACs) will immediately start reviewing the applications and vote by September 30, 2025.

Successful bidders who secure approval from the CACs will then be asked to file additional details, including a proposal for a suitable tax rate for their respective venue. Then, the NYS Gaming Facility Location Board will have to make a decision by December 1, 2025. After that, the New York State Gambling Commission will issue the three downstate casino licenses no later than December 31, 2025.

NY downstate casino licenses will fuel the growth of successful bidders

The aforementioned companies do not exhaust the long list of likely bidders who are anticipating securing one of the coveted licenses in New York. Still, the high interest alone is a testament to the importance of each license. Undoubtedly, whichever companies secure the downstate casino licenses, will be able to leverage this to their advantage and benefit from exponential growth in the near future.

Image credit: Pixabay.com