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By: Hadassa Kalatizadeh
New York State Gov. Kathy Hochul vetoed a bill that would have pushed up a deadline for bidders applying for a casino license in or around New York City. As reported by the NY Post, the legislation, which was passed by lawmakers in June, would have forced the bidders to submit their proposals for review by this August, even if they had not yet obtained the necessary local zoning or other approvals. “Changing the timeline …. would likely have the impact of helping certain bidders and hurting others,” Hochul said in her veto message. “I cannot support a bill that aims to change the rules in the middle of the process.
The state’s Gaming Commission is expected to approve up to three downstate casino licenses by the end of 2025. Per the Post, some industry sources say that expediting the application process would have benefited the bidders who don’t require special zoning changes, while a more lax time table would benefit the bidders that face political hurdles or need local zoning or land-use permits. For example, an expedited deadline would potentially hurt Mets billionaire owner Steve Cohen’s plan to build an $8 billion casino-entertainment complex near to CitiField in Queens. It would also hurt Related Companies, partnered with Wynn, in their proposal to build a $12 billion gaming complex in Hudson Yards.
In her veto message, Hochul said the casino selection process was agreed to with lawmakers as part of the 2022 state budget. “As part of the process, applicants are required to work with local governments so that their projects fall within the respective zoning laws of the municipalities,” she said. “Potential applicants have been continuously working toward ensuring that their projects are compliant.”
State Sen. Joe Addabbo (D-Queens), who had sponsored the bill to speed the process along with Assemblyman Gary Pretlow (D-Mount Vernon), called out Hochul for accusing lawmakers of making changes midway. Per the Post, he noted that over the summer Hochul herself put a “pause” on the controversial $15 toll to enter Midtown Manhattan just when it was ready to implement.
She then resurrected the plan, adjusting it to $9 just days after the elections, after her fellow Democrats were done campaigning. “The governor changed congestion pricing in the middle of the process,” said Addabbo, chairman of the Senate Committee on Racing, Gaming and Wagering. “I was trying to improve the process.” He said potential bidders with serious legal or land use issues should be eliminated sooner rather than dragging it out for them. “If you can’t figure out the land use issues in two years maybe a casino shouldn’t be there,” Addabbo said.
The state will get a minimum of $500 million from each of the three bidders awarded a casino license, with the proceeds benefitting the ailing Metropolitan Transportation Authority. Addabbo estimated that figure could actually be closer to $750 million per license.
Addabbo noted that it would take most of the bidding developers about three years to build new casinos. Whereas, the existing slots parlors, Resorts World at Aqueduct raceway and MGM Empire City at Yonkers raceway, could easily expand within months to offer live table games, if awarded a full casino license.
Per the Post, currently, the state’s Gaming Facility Location Board timeline says that applications for casino bids are due June 27, 2025.
