The comprehensive and lengthy process that will see New York award a total of three new downstate licenses continues. While lawmakers pushed for speeding of the process, their efforts have so far failed to pick up speed. Now, a proposal that sought to expedite the process was vetoed in another move that reaffirmed the initial timeline for awarding new casino licenses.
A Change in the Timeline May Help Some Casino Bidders
As announced by the New York Post, Gov. Kathy Hochul recently vetoed a bill that proposed to push the deadline for the casino license bidding. The proposal called to expedite the process, enabling bidders to file license proposals even if they are still clearing up specific zoning or other relevant approvals.
But Gov. Hochul disagreed with the bill, revealing that a change in the initially proposed timeline may have a negative impact on certain bidders while helping other casino applicants. “I cannot support a bill that aims to change the rules in the middle of the process,” the Governor wrote in her veto announcement.
Additionally, Gov. Hochul pointed to the importance of the bidding process, outlining that it requires the casino bidders to cooperate with local authorities and governments, securing the necessary approvals. “Potential applicants have been continuously working toward ensuring that their projects are compliant,” she added.
“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,“
wrote Gov. Kathy Hochul
Licenses to Be Awarded by the End of 2025
The existing casino bidding process requires applicants to submit their proposal before June 27, 2025. Once this happens, the state’s Community Advisory Committees will analyze the proposals and reject or approve them. Then, the casino licenses are expected to be awarded before the end of 2025.
Earlier this year, we reported that the Metropolitan Transportation Authority (MTA) is expected to benefit from proceeds from the state’s three new casinos. An estimated $500 million is expected to be paid by each bidder, bringing a total of $1.5 billion.
However, according to Sen. Joe Addabbo, the proceeds per casino license may hit $750 million. If that happens, a whopping sum of $2.25 billion may be generated from the three new downstate casino licensees.
Many recognizable hospitality and gaming companies have shown interest in securing a casino license in New York. The list includes Wynn Resorts, the Mets’ billionaire owner, Steve Cohen, as well as Las Vegas Sands, among others.
