The Impact of New Casino Facilities on Downstate New York

The landscape of downstate New York may soon face transformation, not from the efforts of athletes but from the establishment of three new casino facilities, altering the economic and entertainment dynamics of the region.

A Complex Bidding Process

The New York State Gaming Facility Location Board has set a significant milestone by establishing June 27, 2025, as the deadline for bids on these casinos. This decision came amidst rising debates and legislative challenges. Currently, a bill is awaiting Governor Kathy Hochul's signature, which proposes an earlier deadline of August 31, 2024. This bill, authored by Senator Joe Addabbo and referred to as S9673A, has already navigated the legislative waters, passing through both the house and senate in early June.

If Gov. Hochul signs the bill into law, it would effectively override the facility location board’s decision, accelerating the bidding process by nearly a year. The facility location board, however, has expressed concern over this accelerated timeline. As Vicki Been articulated, “Politicians may want a quicker deadline, but that would be impractical.”

Zoning and Environmental Hurdles

One of the major obstacles cited by the board is the need for all 'entitlements and zoning' to be approved before any bid can be reviewed, a process that is far from simple. Environmental impact studies and zoning changes are preconditions that must be met to give the green light for review.

Two of the most high-profile proposals, Bally’s Bronx proposal and Steve Cohen’s Queens proposal, currently require rezoning from their parkland designations to accommodate the envisioned casino facilities. The board's sentiment was clear: “Because bids cannot be reviewed until all ‘entitlements and zoning’ are approved, the board views the current deadline as unreasonable.”

A Competitive Field

The competition to develop these new casino facilities is fierce, with 11 bidders vying for prime locations across downstate New York, from Times Square to Brooklyn. The bids are diverse, promising not only casino facilities but also resorts, housing units, and neighborhood improvements.

The proposals cover a gamut of major commercial and tribal operators:

  • 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.

Future Considerations

The facility location board acknowledged the clash between their set deadline and the stipulations of S9673A. Nevertheless, they remain optimistic that obtaining bids by the new deadline of June 2025 won't derail the overarching goal of issuing licenses by the end of that year. Vicki Been reiterated the board's position by stating, “The hope would be that our reasoning will be helpful to the governor.”

The outcome of this bidding process has the potential to reshape downstate New York's entertainment and economic landscape, introducing not only gaming but also broader development initiatives into some of the state's most iconic areas. Whether the deadline will be moved up as the bill proposes, or whether it will remain at the board’s original timeline, what is clear is that the competitive and regulatory stakes are at an all-time high.

For now, all eyes are on Governor Hochul as she contemplates signing the bill, a decision that will dictate the pace and possibly the direction of one of New York's most significant development undertakings in recent history.