New York is gearing up for a significant expansion in its gaming landscape, with three lucrative downstate casino licenses up for grabs.
This move marks a major step toward boosting economic development and providing new entertainment options in the region.
There are eight contenders, but a lot still has to happen before the three licenses are granted. Here's a detailed look at what’s happening, including why these licenses are up for bidding and what the process involves.
Why Are Downstate Casino Licenses Available in New York?
The availability of these casino licenses is the result of a strategic legislative and regulatory initiative that has been in the making for a decade.
The goal is to capitalize on New York’s massive population base and tourist influx by expanding full-scale commercial casino operations in the downstate area, which includes New York City and its surroundings.
The decision reflects the state’s intention to promote economic development, create jobs, and generate substantial tax revenues from the gaming industry. Additionally, the move seeks to diversify entertainment options while fundraising for public services, given the financial benefits casinos have historically brought to different regions.
Key Dates and Current Status of New York Casino License Process
The process for awarding these licenses is structured and rigorous, designed to ensure that the winning bids offer the optimal benefits for local communities and the state. Here's what you need to know:
- Application Deadline:Applications were turned in on June 27. All bids for the three downstate casino licenses had to be submitted to the New York State Gaming Commission by then.
- Community Advisory Committees (CACs): Each of the eight remaining proposals now has an assigned CAC, comprising local and state officials. These committees are reviewing applications, holding public meetings, and are expected to issue a binding vote by a two-thirds majority by September 30, 2025.
- Final Licensing Decisions: The Gaming Facility Location Board anticipates recommending winners by December 1, 2025, with the Commission issuing the licenses by the end of 2025.
Who’s Bidding for the New York Downstate Casino Licenses?
A total of eight major proposals are now in contention, following the withdrawal of several original applicants. Noteworthy contenders include:
- Caesars (Times Square)
- Empire City (MGM, Yonkers)
- Resorts World (Queens)
- The Coney (Coney Island)
- Freedom Plaza (Manhattan's East Side)
- Silverstein Properties & Greenwood Gaming (Midtown Manhattan)
- Bally’s (Bronx)
These proposals are vying for a stake in a highly competitive market. Interestingly, two of the contenders, Empire City and Resorts World, are looking to expand their existing "racino" operations, giving them a potential edge due to established operations and local support.
Review and Approval Process
Each proposal undergoes a meticulous review and approval procedure, designed to assess the benefits and impacts of each project rigorously:
- CAC Review: Proposals advance only with a two-thirds "yes" vote from their CAC. Each committee must hold at least two meetings and public hearings to gauge community input.
- Entitlements and Zoning: Projects must complete local zoning and environmental reviews by September 30, 2025. Failure at this stage could derail a project, irrespective of other merits.
- Evaluation Criteria: The Gaming Facility Location Board looks at economic development (70%), local siting impact (10%), workforce enhancement (10%), and diversity plans (10%).
Financial Requirements
The financial stakes are high, with significant investments required from bidders:
- License Fee: $500 million per license.
- Minimum Capital Investment: $500 million per project.
- Other Fees: A non-refundable application fee of $1 million for CAC-approved bids.
- Tax Rates: Minimum tax rates are set at 25% for slot gross gaming revenue and 10% for other revenue streams.
Major lobbying and media campaigns are underway.
Some proposals face strong community resistance, especially in Manhattan and Brooklyn, where public hearings have drawn large crowds. Despite these challenges, front-runners like Empire City and Resorts World remain strong contenders due to their readiness for rapid expansion, though there is pressure for the state to consider new entrants for diversity.
What’s Next in the Race for New York's Casino Licenses?
The upcoming months are critical. CAC hearings, zoning, and environmental approvals continue throughout the summer of 2025.
By September 30, 2025, all reviews and votes will conclude. Finally, by December 2025, the Gaming Facility Location Board will formally recommend up to three licensees, with the Gaming Commission granting final approvals by year-end.
This complex process highlights New York’s strategic efforts to bolster its economy through gambling expansion, ensuring that new casinos bring maximum benefit to both the state and its residents.
