Political Pressure Mounts on New York Casino License Delay Fund

Date: 2024-09-18 Author: Leon Pierce Categories: CASINO
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The process of speeding up the casino license process in southern New York has hit a wall despite mounting pressure from politicians like Senator Joseph Addabo. In 2022, the New York State Assembly approved up to three new casino licenses, hoping to stimulate the economy through job creation and increased tax revenue. However, the process has been extremely slow, and the New York Gaming Commission has made it clear that decisions on those licenses will not be made until December 2025.

Governor’s Opposition to Speed ​​Up Process

Addabo is frustrated with the delays, saying too much money and jobs are at stake to allow the process to drag on. He has supported a bill that would speed up the selection process by setting earlier application deadlines. His plan would have required bids to be submitted by August 31, 2024, with winners to be selected by December 2025. However, that deadline has passed and Governor Kathy Hochul has taken no action, leaving the bill in limbo.

Governor Hochul is not in favor of speeding up the process. People close to her told Spectrum News that her team favors the longer timeline set by the state Gaming Siting Commission. That plan gives potential bidders until June 2025 to submit proposals, which some experts say is more reasonable given the complexity of billion-dollar casino projects. Critics of the faster timeline argue that developers need more time to prepare quality bids because some areas of New York City have not yet established zoning regulations.

Addabo Optimistic Despite Governor’s Reluctance

Despite the governor’s reluctance to speed up the process, Addabo and Assemblyman Gary Pretlow, who worked on the bill, are still hopeful that Hochul might change his mind. They point to the financial benefits that would come from opening casinos in New York earlier, such as $1.5 billion in licensing fees. That money could offset losses caused by recent decisions, such as delaying the start of occupancy fees in Manhattan.

There are concerns about how casinos in the southern part of the state could impact existing properties in the northern part. When New York first began legalizing casinos, the focus was on boosting the economy in the northern part of the state. Now, politicians like Addabo believe the southern part, including New York City, deserves similar benefits. But the long wait could change the competitive landscape for properties like MGM’s Empire City and Genting’s Resorts World. These properties already operate video terminals and could be granted full casino status, giving them a significant advantage over new competitors.
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