New Casinos in Downstate New York: Legislative Battles and Development Prospects

Downstate New York is on the verge of a significant transformation, as the introduction of three new casino facilities could reshape its entertainment and economic landscape. The New York State Gaming Facility Location Board has set a new bid deadline for these casinos to June 27, 2025, in a crucial decision that could define the future of gaming in the region.

However, this decision may soon be overridden by a bill pending Governor Kathy Hochul's signature, which proposes an earlier bid deadline of August 31, 2024. Authored by Senator Joe Addabbo and known as S9673A, the bill passed through both the House and Senate in early June. This timeline has raised concerns among board members who view the bill's stipulations as overly ambitious.

Concerns Over Ambitious Timeline

The facility location board's primary concern revolves around the preconditions that must be met before any bid can be reviewed, including the approval of all 'entitlements and zoning.' Environmental impact studies and necessary zoning changes are critical hurdles that bidders need to clear. "Politicians may want a quicker deadline, but that would be impractical," remarked Vicki Been, reflecting the board's skepticism about meeting the proposed timeline.

"Because bids cannot be reviewed until all ‘entitlements and zoning’ are approved, the board views the current deadline as unreasonable," stated the New York State Gaming Facility Location Board. This sentiment underscores the board's cautionary approach, as they hope their reasoning will be helpful to the governor.

Proposals and Requirements

Among the current proposals, the Bally’s Bronx and Steve Cohen’s Queens projects require rezoning from their parkland designations to accommodate the new casino facilities. These zoning changes are just one part of the complex process that bidders must navigate. Presently, there are 11 bidders vying to develop casinos in various prime locations, ranging from Times Square to Brooklyn. These proposals encompass not just gaming facilities but also resorts, housing units, and neighborhood improvements, bringing together both commercial and tribal operators.

The array of proposals includes significant names and partnerships:

  • 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.

The Road Ahead

As the board members continue to voice their concerns during meetings, they also maintain a sense of optimism. Despite the potential clash between their own set deadline and the stipulations of S9673A, they believe that obtaining bids by the new deadline will not hinder the overarching goal of issuing licenses by the end of 2025. This optimism is rooted in their belief in thorough planning and due diligence, as they aim to balance the rapid pace of legislative demands with the practicalities of large-scale development projects.

The outcome of this legislative and procedural tug-of-war could usher in a new era for downstate New York. If successfully navigated, the integration of gaming and broader development projects in some of the state’s most iconic areas could herald a period of economic rejuvenation and expanded entertainment options.

In summary, while the journey to realizing these casino developments in downstate New York is fraught with legislative hurdles and logistical complexities, the path forward is paved with possibilities. The decisions made in the coming months will be crucial in shaping a vibrant future for the region’s gaming, hospitality, and economic landscapes.