With New York Governor Kathy Hochul yet to make a move endorsing or condemning Senate Bill S9673A, which would speed up the casino license bidding process in downstate New York, the legislation brought forth by Senator Joseph Addabbo and Assemblyman Gary Pretlow now appears defunct.
The legislation, which aims to accelerate the submission deadline to Aug. 31, conflicts with the timeline set by New York’s Gaming Facility Location Board (GFLB) last month.
If the legislation does not pass, the original timeline set by the GFLB remains in place.
The existing timeline
According to the current schedule, the 11 companies bidding for one of three new casino licenses will have until June 2025 to submit their plans. The board will then publish its decision by December of the same year. If this schedule remains, the operators who win one of the coveted licenses won’t be able to break ground until 2026 at the earliest, opening their doors months or years later.
The GFLB’s June deadline considered numerous complexities, such as ongoing zoning issues in the city. The New York State Gaming Commission has cited these zoning issues and more as its primary concern for setting a firm bidding deadline.
Criticism from industry experts
Government law professor and former New York State Racing and Wagering Commission member Bennet Liebman highlighted the impracticality of expecting casino operators to submit multi-billion-dollar project proposals in such a reduced time frame. As Newsday reports, Liebman also believes the governor’s silence is indicative of her decision.
“It’s obvious — it’s the middle of August!” says Liebman. “Sorry, but you’re not going to say to these casino developers: ‘You have two weeks to put in your application for a $10 billion casino.’ That’s just not going to happen.”
Liebman isn’t the only critic of the bill to invoke Gov. Hochul’s silence on the matter. “Practically speaking, the bill is moot,” said Michael Hershman, CEO of the Soloviev Group. “The governor hasn’t spoken out for or against the bill. But her lack of action speaks volumes.”
Economic considerations
The economic impact of a later deadline was the driving force behind the legislation put forth by Sen. Addabbo and Assemb. Pretlow.
The bill argues that the expedited timeline would provide a huge economic boost for the state, particularly the $500 million to $1 billion license fees that would be attached to each of the three casinos.
The bill continues to argue that beyond the licensing fees, an earlier closing date for bids - and subsequently an earlier opening date for the casinos - would boost tourism, job creation, and overall state revenue.
Delaying the bids could also impact the fairness of the whole operation.
Existing operators in New York that already have casinos with a large collection of slots, such as Genting’s Resorts World in Queens and MGM’s Empire City in Yonkers, may gain an unfair advantage upon securing a license. These operators can procure a full casino quicker than others and get a headstart on the competition.
