Intense Competition for Casino Licenses in New York
Ten prominent bidders are competing for three coveted full casino licenses in downstate New York, transforming what began as a quick contest into a lengthy endeavor. The state legislators approved the introduction of three downstate casinos in 2023, which will each offer full gaming tables for games such as roulette, blackjack, and poker. The announcement regarding the awarding of these licenses is expected at the end of 2025, and the most ambitious bidders are making substantial investments in hopes of being among the three chosen.
The contenders represent some of the wealthiest entities in the state, frequently collaborating with major gaming companies nationwide, from Connecticut to Las Vegas. Their proposals encompass more than just gaming tables; they include significant urban development projects—skyscrapers, public parks, retail spaces, hotels, and even affordable housing initiatives.
Winning one of these licenses could dramatically alter the socio-economic environment of the New York City metropolitan area. Presently, the region only offers video lottery terminal (VLT) betting through facilities like Resorts World New York City Casino at Aqueduct Racetrack and MGM Empire City at Yonkers Raceway, both of which contribute to the overall health of New York’s horse racing industry.
The aforementioned racinos at Aqueduct and Yonkers Raceway are seen as frontrunners to secure two of the three licenses, given their decade-long operational history and substantial VLT revenue. However, the competition for the three licenses remains fierce, with no guarantees in this high-stakes race filled with lofty ambitions and multi-billion dollar investments.
Requirements for Bidders
The selection process for these lucrative licenses resembles a high-stakes poker game, exclusively for the ultra-wealthy, where applicants must demonstrate over $1 billion in resources to be considered. A $1 million non-refundable application fee is required, as well as an upfront payment of $500 million for the license and a considerably funded development plan, with licenses granted for a duration between 10 to 30 years. The final winners will be determined by a three-member state Gaming Facility Location Board, which will make recommendations to the Gaming Commission following community support for each development proposal.
Each project will undergo evaluation by a Community Advisory Committee comprised of representatives appointed by various local officials, including the governor and the mayor. To proceed, at least four out of six committee members must endorse the proposal. Additionally, compliance with all environmental and zoning regulations is necessary before being reviewed by the Gaming Facility Location Board, with a decision on the licenses anticipated by late 2025.
While Resorts World and MGM Empire City seem well-positioned to transition into full casino operations with minimal community pushback and existing infrastructure, there are numerous proposals throughout the region, ranging from upscale casinos in Manhattan to revitalization projects in places like Brooklyn and the Bronx. Each proposed site—whether in Times Square, Hudson Yards, or Coney Island—aims to generate substantial community benefits, job creation, and economic development.
As the bidding process unfolds, legislators stress the importance of expediency in awarding the licenses, emphasizing that delays could hinder revenue generation and impede local economic enhancements. Once operational, the new casinos are expected to contribute significantly to employment, educational funding, and various state programs.
