In 2013, New York state regulators authorized seven commercial casinos and four casino resort destinations in upstate New York. Last year, the regulators made some final changes to facilitate these establishments.
In 2022, the New York State budget was passed, creating a new approach and criteria for the three remaining casino licenses. Then, in April of 2020, Governor Kathy Hochul and the State Legislature agreed to authorize up to three casino licenses for downstate New York.
In January 2023, the New York State Gaming Facility Location Board released a Request for Applications (RfA) to develop and operate a gaming venue in New York City, Long Island, and Westchester County.
It has been confirmed that two racetracks that offer slot machines, Empire City Casino in Yonkers and Resorts World New York City in Jamaica, Queens, will each receive a license.
Only one casino license is available in New York, so the question is: who will be the lucky recipient?
Eleven different companies have put forth competitive proposals to compete for one of three available New York casino licenses. The proposals, announced as of May 1, include the following locations:
There are five proposals in Manhattan, located in Midtown, Hudson Yards, Penn Station, Times Square, and adjacent to the United Nations building. Additionally, there is one proposal in the Bronx (Throgs Neck), two in Queens (Willets Point and Ozone Park), one in Brooklyn (Coney Island), one in Nassau County (Uniondale), and one in Westchester County (Yonkers). Now, let’s examine who is responsible for these proposals.
Stephen M. Ross, the owner of the Miami Dolphins, is managing Related Companies, which is in the running to open a casino in Manhattan’s Hudson Yards development.
In September of 2022, Ross formed a partnership with Wynn Resorts, a prominent gambling enterprise with locations in Las Vegas, Boston, and Macau. The company was established by Steve Wynn and is currently led by CEO Craig Billings.
Two companies were looking at the property located in the western rail yard of Manhattan, which is a part of the 28-acre Hudson Yards complex. This area, which was once a sunken train yard, has been a priority for Related Companies, as well as for New York Governor Hochul and former Governor Andrew Cuomo.
The proposed casino project, which is estimated to cost $25 billion, would include the following:
The project, which was to include a residential and office tower with high-end stories and luxury apartments, a new park between Eleventh Avenue and the Hudson River in the West 30s, and a Hudson Yards casino close to the Jacob Javits Convention Center, was delayed due to the pandemic.
Ross was one of many people who gave money to Hochul’s election campaign last year. The chief officer of Related donated $69,700, and Hochul would likely have the final say on which casino licenses are awarded.
The Hudson Yards skyscrapers viewed from the High Line are a collection of iconic structures, including Hudson’s Bay, Saks Fifth Avenue, and Manhattan. Saks Fifth Avenue’s proposal includes renovating and modernizing an existing building, allowing for a more enjoyable experience for visitors.
Hudson’s Bay Company, the owner of Saks Fifth Avenue, started a project to turn the top three floors of the Midtown store into a luxurious casino.
The company is intending to convert 200,000 square feet of their current retail space, located on the ninth, tenth and eleventh floors, into a luxury casino. This casino will provide a rooftop terrace with a view of Rockefeller Center. The floors are currently being used as temporary swing spaces.
The company intends to draw in affluent tourists from all around the world by constructing a casino modeled after Monte Carlo.
The project would not need any large-scale construction, meaning it could be ready to use within a year, according to an article from the New York Times.
Some people are not in favor of this proposal, as the local community board worries that it could negatively affect the local businesses in the vicinity. Moreover, the proposed building is situated near Saint Patrick’s Cathedral, which is a popular destination for tourists and Catholic worshippers.
Vornado Realty Trust had intended to transform the landscape around Pennsylvania Station in Manhattan with new office towers. However, CEO Steven Roth has decided to put his ambitious redevelopment plan on hold due to the current high-interest rates and the real estate market’s difficulty in rebounding from the pandemic.
Michael Franco, the president and CFO of the firm, said that due to major obstacles, the plans to redevelop the Penn Station area, which included the now-demolished Hotel Pennsylvania, could be delayed for a minimum of two years, as reported by the New York Times.
The 18 million-square-foot project, located around the transit hub, could include ten new skyscrapers with mostly office space. Additionally, the area could also have 1,800 new apartments, some of which would be available to rent at a lower than market price.
The company did not say whether it would change the composition of the whole site, but stated that the redevelopment of the two office towers at Penn 1 and Penn 2 is still ongoing.
Opponents of the project restoration hope that New York State will consider plans that focus more on the much-criticized Penn Station transit hub located beneath Madison Square Garden.
It is estimated that the plan, which would include retail and hotel space, would cost $7 billion. It is hoped that half of the amount will be funded by the federal government. Additionally, the planned casino in the Penn Station area is expected to generate $1.2 billion in taxes for the developers.
Vornado has not yet made any public announcements regarding potential partners for the project, and there has been no release of detailed plans or renderings.
Caesars Entertainment and SL Green have partnered with Roc Nation and Jay Z to develop a casino at 1515 Broadway, a skyscraper located in Times Square.
In December, the companies revealed their collaboration, which was intended to launch a new casino project estimated to create thousands of jobs. Additionally, the project is designed to provide various benefits such as: ____________.
Every year, Times Square receives over 7 million new visits, leading to more than 600,000 overnight stays at local hotels, over seven million meals at local restaurants, more than $166 million in new retail spending, and over $65 million in new Broadway ticket sales, which supports 500 theater district jobs. Despite the fact that the casino project was supported by a coalition of stakeholders representing construction labor, it faced resistance from The Broadway League, a trade association for the commercial theatre industry, who worried that a new gaming venue would take away business from existing casinos.
The “No Times Square Casino” community coalition is strongly opposed to the project of constructing a casino at 1515 Broadway and is attempting to prevent it from being built. In addition to The Broadway League’s endorsement, the coalition has received backing from local restaurants and associations.
The website also received criticism of the proposed casino from various media outlets such as the New York Post, New York Daily News and City & State New York. Additionally, the site received statements of opposition from the Sardi’s Joe Allen Orso American Bus Association Student & Youth Travel Association, Hell’s Kitchen Black Association and West 47th-48th Streets Block Association.
The Mohegan project includes a massive Ferris wheel, four acres of green space, two residential towers, a 1,000+ room hotel, a Democracy Museum, and an underground casino with windows offering views of the water.
Stefan Soloviev is the current chairman of the family-owned Soloviev Group, which was founded by his late father, New York developer Sheldon Solow.
Soloviev, the owner of the One United Nations Park luxury residential tower at 685 First Ave., plans to construct a marina with direct ferry access near the 34th Street ferry stop, and also intends to build a bridge over the Franklin D. Roosevelt East River Drive.
Soloviev hired seventy professionals to help with the New York casino license application. These professionals included lawyers, architects, construction engineers, and financial advisors.
If the licensing and zoning processes are completed by next year, the US billionaire anticipates that the casino resort will be opened by 2026.
Freedom Plaza is a proposed resort by Bally’s Corporation located in the Bronx, New York. It would be built on public parkland at Ferry Point, a site leased from the Trump Organization. The resort would offer a high-stakes gaming experience and become part of the race for a New York casino license.
In December, Bally’s reached an agreement with the organization to acquire 17 of the 192 acres for a new casino proposal that is estimated to cost $2.5 billion, as reported by the New York Times.
The Trump Organization has almost 20 years left on its current lease with the city, so any agreement would need to be approved by the NY city parks department. Furthermore, as the site is on public parkland, a casino bid would require additional state legislation to allow for the new usage.
If Bally’s bid is approved, the company can take the Trump Links name off the venue as soon as it turns the property into a casino. The proposal should also include housing, a hotel, public parks, youth sports fields, hiking trails, and a farmer’s market, all to help make the area more attractive and enjoyable.
Bally’s was planning to lease land from the city in order to build a casino, but they have reportedly decided to withdraw from the agreement due to a disagreement. However, Bally’s may still make one last attempt to build a casino on private land at Willets Point.
Billionaire and New York Mets owner Steven Cohen is in a similar situation as Bally’s. He wants to transform the parking lots around Citi Field, the Mets’ stadium, into a casino and entertainment complex. However, he is leasing the property from the City of New York.
Cohen has declined to sign a potential agreement with New York City FC to allow them to use a 50-acre parking lot for a shared purpose, as he wishes to use it for a casino. Hard Rock International and Seminole Gaming are the proponents of this plan.
Cohen intends to construct an apartment building featuring affordable housing, in addition to a school, near the Mets’ stadium. The apartments will be available for occupancy by 2026.
Cohen hired outreach teams to poll 600 residents who supported his plan, however the project encountered resistance. A coalition of immigrants, which is becoming increasingly larger, is against the casino and is determined to prevent Cohen’s plan from going through. The coalition is concerned that the casino is targeting the Asian community and immigrants who are in vulnerable situations.
Aubry, a company representing Corona and parts of Flushing, acts as an agent for Cohen and his development firm New Green Willets LLC, which is composed of eight lobbying firms that work to influence city and state officials. Last year, New Green Willets organized multiple workshops and hired a team of lobbyists, paying them a total of $436,665.
In order to be granted a casino license in New York, Cohen must convince three key elected officials who are necessary for his casino application to be accepted. One of them is Senator Jessica Ramos, who has previously expressed her opposition to Cohen’s purchase of the franchise due to his questionable history.
In March, Assemblyman Jeffrion Aubry introduced legislation that would enable Cohen to transform the overflow parking lots surrounding Citi Field into a casino complex. As the lots and the property around the stadium are considered parkland, a change in state law is necessary for them to be used for any other purpose.
Citi Field Stadium is a multi-purpose venue located in Queens, New York. It is owned and operated by the Genting Group, a Malaysia-based gambling giant, through its Resorts World Casino. Genting has spent millions lobbying for the expansion of its Resorts World facility, making it a formidable competitor in the race for a New York casino license.
Politicians and unionized workers already employed by Genting have given the necessary support to the group in order to facilitate their operations.
The other recipient of a surety is Empire City Casino located in Yonkers. Both of these properties are Class II gaming facilities. With a New York casino license, these casinos will be able to become Class III facilities.
MGM Resorts’ Empire City Casino in Yonkers has applied for a casino license in order to extend its services and offer table games.
Earlier this year, the casino announced major upgrades to its gaming floor. Approximately 20% of its existing games – equating to 5,000 slot machines and electronic table games – are being replaced with more up-to-date options. Additionally, 1,000 new casino games are being added.
Obtaining a commercial casino license would enable the casino to expand from its current setup, which includes video lottery terminals and electronic table games, to a much more comprehensive facility. This upgrade would include:
The gaming facility is the sixth largest in the US, welcoming 9 million guests annually. It offers a variety of live dealer table games, retail sports betting, slots, new amenities, and exceptional entertainment options for its guests.
MGM’s spokesperson said earlier this year that the casino project was intended to create an environment where people could have an enjoyable experience.
The construction of a full-scale casino in Yonkers, providing a world-class gaming experience, is a revolutionary move that will dramatically improve the community. It will create 13,000 jobs, with thousands of direct hires, and generate an estimated $1 billion in economic activity for the region.
MGM Resorts, the largest operator on the Las Vegas Strip, has unparalleled experience in running full-scale casinos and gaming operations. We are excited to present the best that our company and industry can offer at Empire City. This iconic establishment is an integral part of Yonkers and the surrounding area, and will be a key driver of economic growth for New York State.
Empire City Casino was established in 1899 as a racetrack in Yonkers, New York. In 2006, slot machines were introduced to the facility. In addition to slot machines, the casino provides automated table games; however, the offerings are not as comprehensive as those at casinos in the upstate area.
Thor Equities, a consortium of investors, is pushing for a casino, hotel, and entertainment proposal at Coney Island in Brooklyn. The group aims to stimulate the local economy by creating permanent jobs for residents.
The consortium is composed of: to make understanding easier.
Thor Equities, owned by Joe Sitt, part-owner of the Coney Island amusement district, joined forces with Saratoga Casino Holdings and The Chickasaw Nation to form the development company Legends.
In their proposal, the group proposed that the property be named “The Coney” and that it be located near the shore of the island.
The residents of Coney Island, although quieter than in Manhattan, are not in agreement with the potential of building a casino in their neighborhood. They are concerned that there would not be enough transportation services to support the new attraction, as well as a decrease in police force and program funding resources.
The Office of Brooklyn Borough President Antonio Reynoso has recently released a 40-page report summarizing feedback from two public forums on the proposed Coney Island casino. Three responses were opposed to the project, and more than 200 people gave their opinions.
Earlier this year, Las Vegas Sands Co. revealed a $4-billion proposal to redevelop 80 acres of vacant land next to the Nassau Veterans Memorial Coliseum in Uniondale, Long Island. The project would include a casino and entertainment complex featuring: a hotel, retail, restaurants, a waterfront park and a concert venue.
Las Vegas Sands purchased the property in August 2020 and entered an agreement to purchase the long-term lease of Nassau Coliseum in order to provide hotel guests with outdoor spaces for private events and major gatherings, restaurants, convention space, a spa, and a live entertainment venue.
Hofstra University is located close to the proposed casino project at the Nassau Hub, and so they have strongly opposed it. As a result, Hofstra University filed a lawsuit against the Nassau County Planning Commission in April.
Hofstra claims that the commission broke state open meeting laws when they talked about the potential land for the casino, as they were worried that it would lead to more traffic, crime, and economic damage to local businesses.
The Board of Garden City Village voted in conjunction with Hofstra to officially oppose the project proposal.
The Gaming Facility Location Board began their review of applications for downstate casinos in January. This was the start of the official process, which included the Board’s Request for Applications (RFA) and a period for potential applicants to ask questions.
Since March 2, the Board has received hundreds of questions and is currently working to answer them. Once the responses have been published, the Board will provide another opportunity for questions and answers as the process progresses.
The second set of questions and responses is expected to be published this summer or fall. The application deadline will be 30 days after they are published.
The Gaming Commission will have the final say on who receives a license, no matter who the board selects. Three members of the New York Gaming Facility Location Board will work together to pick the winning bid for the license. These members are:
Qualifying bids for Quenia Abreu, CEO of the NY Women’s Chamber of Commerce, Vicki Been, NYU Boxer School of Law Family Professor of Law, and Stuart Rabinowitz, former Hofstra University President and senior counsel at Meltzer, Lippe, Goldstein & Breitstone, LLP require facilitation for reading.
Operators will be required to pay a minimum of $500 million in capital investment, plus an additional $500 million for the gambling license fee, in order to facilitate the process.
Developers of slot machines must pay a 25% tax, while developers of table games must pay a 10% tax. In addition, all developers must pay a non-refundable application fee of $1 million.
Other factors that must be considered when evaluating bidding parties include job creation, local community support, and the amount of tax revenue to be generated.
Several studies have found that the total gross gaming revenue of three casinos in New York could reach up to $4.8 billion each year, depending on where they are located.
