Finish line in sight
As expected, the five-person New York Gaming Facility Location Board has recommended that each of the three remaining applicants for full, resort-style casinos in New York City be granted licenses. The board advanced all three – Bally’s, Hard Rock Hotel & Casino, and Resorts World New York City – to the New York State Gaming Commission on Monday.
The process has been over a decade in the making. In 2013, New York residents voted to allow up to seven casinos in the state, with three of the licenses saved for downstate, aka New York City. Eight potential bidders began the race for the three licenses, and now just the above three remain after MGM Yonkers surprisingly bowed out in October.
The Gaming Commission does not have to issue any licenses, but barring a shocker, it is expected to follow the board’s recommendations.
“The downstate market is among the strongest in the nation, supported by population density, income levels, and tourism,” board member Greg Reimers said. “Each proposal provides a strong competitive positioning.”
Naturally, the applicants expect loads of gaming revenue, and, in turn, tax revenue, to flood in. Board chairwoman Vicki L. Been, while herself optimistic, said that each applicant was too optimistic about revenues, a common occurrence with casinos around the country.
Been said that the board told its consultants to err on the conservative side in their projections; those consultants calculated that the three downstate casinos could generate $7 billion in tax revenue over the first decade, a much-needed cash injection for the state. As large as that number is, it is less than what the applicants estimated.
Three for three
Of the three applicants, the one that has long been considered a shoo-in for a license is Genting’s Resorts World New York City, which already exists as an electronic gambling emporium in Queens. Since it is an established venue, transitioning to a full-fledged casino would be a reasonable next step.
MGM Yonkers was similar and thus also believed to be an obvious eventual winner until it decided to withdraw from the competition.
The other two contenders come with their fair share of controversy. Steve Cohen, hedge fund manager and owner of the New York Mets, aims to build a casino resort next to the Mets’ Citi Field in Queens, in partnership with Hard Rock International. His company pleaded guilty to insider trading charges in 2013 and paid a whopping $1.8 billion fine. While character is something the Gaming Commission is supposed to consider, it is unlikely that this will stop the Cohen/Hard Rock team from receiving a license.
The Bally’s casino would be on the site of Bally’s Golf Links at Ferry Point, which the company bought from the Trump Organization (the golf course was formerly named after the famous game show host) for $60 million in 2023. The land is public and would need to be rezoned to make way for the casino, but the City Council voted against the land use changes in April.
New York City Mayor Eric Adams, though, vetoed the vote, keeping the proposal alive. Though he is a Democrat, Adams has allied in the past with President Donald Trump, trading immigration concessions for the Trump admin’s dropping of federal corruption and fraud charges.
As part of the deal to acquire the land, Bally’s promised to give the Trump Organization $115 million should Bally’s be granted a casino license.
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