January of the previous year was a significant milestone for New York’s gaming industry as the state officially opened the bidding process for three coveted downstate commercial casino licenses. The launch followed an amendment to the 2013 New York State Constitution, which authorized seven casinos to be built in two phases: initially, four in upstate locations, all of which are already operational, and subsequently, three additional sites in or near New York City.
This opportunity has already sparked interest from top-tier casino operators. Casino giants such as MGM Resorts International, Wynn Resorts, Las Vegas Sands, and Caesars Entertainment have all shown their eagerness to expand their empires, unveiling early blueprints for potential casino projects.
However, for those eagerly anticipating a swift outcome, the recent update suggests a longer wait. At a New York State Gaming Commission meeting held March 25, Executive Director Robert Williams outlined the anticipated timeline for the licensing process. He highlighted that comprehensive environmental reviews, a crucial step for approval of the new facilities, will extend the timeline, with a final decision on the sites not expected before the latter half of 2025.
Prospective applicants are facing an arduous journey before they can obtain a license. All bidders must satisfy stringent environmental guidelines, in accordance with the State/City Environmental Quality Review Act (SEQR), which is pivotal given the significant implications new casino establishments can have on the environment.
Robert Williams forecasted that the SEQR assessments alone are unlikely to wrap up until at least the first quarter of 2025. Subsequent modifications to application proposals may be necessary, with these adjustments subject to additional green lights. Advancing the licensing journey without completing these reports, Williams pointed out, would pose an “administrative nightmare.”
Further hindrances could arise from the Uniform Land Use Review Procedures (ULURPs), which too are mandatory for all candidates to complete. This particular protocol is not anticipated to reach completion until early next year, similar to the SEQR timeline.
Moreover, applicants must demonstrate the capability to fully fund their projects before the Commission takes matters further. Miscalculations here could precipitate more waiting, Williams cautioned, potentially inflating capital market costs which could in turn diminish the scale of the proposed casinos.
With these extensive processes in mind, the Commission has encouraged potential bidders to proactively utilize 2024 to align their proposals to all requirements. This proactive stance includes finalizing the mandated environmental evaluations and facilitating New York’s analysis of accompanying ULURP submissions.
This preparatory stage is vital for applicants to be thoroughly ready for the broader review process. The Commission envisions the formation of Community Advisory Committees by mid-2025, which will be ready to analyze the license applications, and it hopes to wrap up additional inspections concerning zoning and environmental consequences by the end of summer 2025.
Provided these milestones are achieved on time, late 2025 could then mark the period for awarding the casino licenses. Successful candidates would be required to submit their license fees, with the prospect of inaugurating their new casino establishments approximately a year thereafter.
“The timeline accommodates the statutory requirements for SEQR and allows sufficient time for local zoning approvals – all to bring forth the best, most comprehensive plans for commercial casino development,” noted the Commission, emphasizing the importance of a thorough process to ensure optimal outcomes.
The race is intensifying among hopeful operators. Last November, MGM revealed intentions to evolve its Empire City Casino into a full-fledged commercial gaming floor. Under MGM’s ambitious plans, the current Yonkers video lottery racino would be transformed, featuring live dealer games, slots, and a high-limit area, along with a BetMGM Sportsbook and Lounge, eclectic dining options, and a 5,000-seat entertainment space.
In the same month, another notable proposal surfaced from Steve Cohen, owner of the New York Mets, and Hard Rock International. They proposed an $8 billion casino resort adjacent to Citi Field ballpark, complete with a Hard Rock hotel and casino and distinct sportsbook, contingent on licensure. Additional offerings would include a live music venue, tailgate park, food hall, and 20 acres of revitalized park space.
Caesars Entertainment announced in October of the prior year its desire to venture into the New York casino scene. In partnership with SL Green Realty, Caesars aims to transform Times Square’s 1515 Broadway into the magnificent Caesars Palace Times Square, with support from Jay-Z’s Roc Nation.
Las Vegas Sands disclosed its bid with plans for a development on Long Island, securing the long-term lease for the Nassau Veterans Memorial Coliseum. Not to be outdone, Wynn Resorts is pursuing a site within Manhattan’s prestigious Hudson Yards development.
As the process unfolds, applicants are strategizing to meet the outlined criteria, in the hopes of making their mark on New York City’s upcoming casino landscape. The Gaming Commission’s announcement sets the stage for what promises to be a competitive and carefully scrutinized selection process, with expectations set for a conclusion by late 2025.
