New York State Extends Downstate Casino Bid Deadline to June 27, 2025
July 2, 2024 Nina Davidovic
The New York State Gaming Facility Location Board has decided to extend the deadline for casino bids to June 27, 2025, a move that diverges from a legislative proposal awaiting Governor Kathy Hochul’s approval, which sets an earlier deadline of August 31, 2024.
The Current State of Casino Licensing
New York’s legal framework allows for the establishment of three downstate casinos, aiming to bring brick-and-mortar gaming facilities to commercial locations within and around New York City. At the moment, there are 11 bidders interested in these licenses, proposing sites ranging from Times Square to Brooklyn. These bidders are not only offering casino resorts but also housing units and neighborhood enhancements to bolster their proposals.
In early June, Senator Joe Addabbo’s bill (S9673A) successfully ed through both the Senate and Assembly. This bill mandates that all casino bid proposals be submitted by the end of summer 2024. However, Governor Hochul has not yet signed the bill into law. The Gaming Facility Location Board’s recent decision to extend the deadline indicates their belief that the proposed timeline in the bill is too restrictive.
During their meeting on June 27, the board highlighted several concerns about the feasibility of the August 2024 deadline. They pointed out that bids cannot be properly evaluated until all necessary zoning approvals and environmental impact studies are completed. Board Chair Vicki Been articulated that extending the deadline to June 2025 provides a more realistic timeframe for bidders to meet all requirements.
Board member Stuart Rabinowitz noted that if Governor Hochul signs the bill, the new law would supersede the board’s decision. However, the board is hopeful that their reasoning will help inform the governor’s decision, emphasizing the impracticality of a rushed deadline.
A significant hurdle for many bidders is obtaining the necessary zoning changes and completing environmental impact assessments. For instance, Bally’s proposal for a Bronx casino and Steve Cohen’s plan for a Queens casino both require rezoning of parkland to permit casino construction. These rezoning efforts are currently in progress, but neither has been finalized, illustrating the lengthy and complex process involved.
Interested Bidders and Their Proposals
The competition for the three downstate casino licenses is intense, with major players in the gaming industry such as MGM Resorts International, Wynn Resorts, Las Vegas Sands, and Caesars Entertainment among the 11 bidders. These companies have outlined ambitious plans that include not only gaming facilities but also various amenities and community benefits, aiming to strengthen their bids.
While the Gaming Facility Location Board has extended the deadline to June 27, 2025, the ultimate decision lies with Governor Hochul. Should she sign the bill, the deadline would revert to August 31, 2024, imposing a tighter schedule on the bidders. The legislation ed by the Senate and Assembly requires the board to make recommendations on the casino licenses by December 31, 2025, providing a timeline for the selection process.
The extension of the bid deadline underscores the board’s intention to allow adequate time for bidders to complete all necessary preparations, including zoning and environmental clearances. This decision aims to ensure that the proposals submitted are comprehensive and viable, ultimately benefiting the state’s objectives for downstate casino development.
As the process unfolds, the focus will be on balancing the need for thorough evaluation with the desire to expedite the introduction of new casino facilities. The coming months will be crucial as Governor Hochul’s decision on the bill will determine whether the extended deadline will stand or if the expedited timeline will be enforced.
The New York State Gaming Facility Location Board’s decision to extend the deadline for casino bid submissions to June 27, 2025, reflects a cautious approach aimed at ensuring that all necessary preparations are in place. This move, although in conflict with the pending legislation, highlights the complexities involved in the casino licensing process. With major gaming operators in the running and significant zoning and environmental challenges to address, the extended timeline seeks to facilitate a thorough and effective selection process for the new downstate casinos.
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