The landscape of downstate New York is on the brink of a significant transformation with the introduction of three new casino facilities. This initiative is expected to bring not only gaming but also broader development projects to some of the state's most iconic areas, spanning from Times Square to Brooklyn.
Critical Decisions and Timelines
The New York State Gaming Facility Location Board recently set a new bid submission deadline for these casinos to June 27, 2025. However, a piece of legislation that could potentially accelerate this process is now awaiting Governor Kathy Hochul’s signature. Authored by Senator Joe Addabbo, the bill, known as S9673A, stipulates an earlier bid deadline of August 31, 2024.
If signed into law, Addabbo's bill would override the facility location board’s decision, forcing bidders to submit their proposals by the end of summer 2024. Both the state house and senate passed the bill in early June, but it has raised concerns from the facility location board. The board has explicitly voiced reservations about the ambitious timeline the bill dictates.
"Politicians may want a quicker deadline, but that would be impractical,” said Vicki Been, conveying the board’s apprehension. The board believes the current deadline is unrealistic, given that bids cannot be reviewed until all 'entitlements and zoning' are approved. These preconditions include comprehensive environmental impact studies and necessary zoning changes essential for the proposed casino developments.
The Competitive Landscape
A total of 11 bidders are vying to develop casinos in prime locations across downstate New York. These proposals include not only casino facilities but also resorts, housing units, and neighborhood improvements, showcasing a mix of commercial and tribal operators.
Among the notable proposals are:
- 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 Challenges Ahead
Two standout proposals, Bally’s Bronx project and Steve Cohen’s Queens project, currently require rezonings from their parkland designations to accommodate the casino facilities. This indicates that these developments are not just about business expansion but also about fundamentally altering local landscapes and land use.
The facility location board has emphasized that environmental impact studies and the approval of necessary zoning changes are preconditions that must be met before any bid can be reviewed. This is a substantial undertaking that involves detailed scrutiny and cooperation between various state and local agencies.
"Because bids cannot be reviewed until all ‘entitlements and zoning’ are approved, the board views the current deadline as unreasonable,” noted the New York State Gaming Facility Location Board. The board members highlighted these concerns during their recent meeting, indicating that extending the deadline to June 2025 would allow for a more thorough review process.
Despite the board's reservations, they maintain optimism that the new deadline can still align with the overarching goal of issuing licenses by the end of 2025. "The hope would be that our reasoning will be helpful to the governor," Vicki Been added, referencing the board’s perspective that a careful and considered approach is essential for the successful implementation of these projects.
The outcome of this legislative and administrative wrangling will likely reshape not only the entertainment sector but also the economic landscape of downstate New York. The integration of gaming and broader development projects into some of New York's most iconic areas promises to be a game-changer, merging entertainment with urban development in a way that could set a precedent for other states to follow.