New York casino licence decision not expected until late 2025

In January of last year, New York formally began accepting bids for three commercial casinos located in downstate New York. There are now four casinos in upstate New York that were authorised by a constitutional amendment in 2013. Three other casinos will be added to the list, either in close proximity to New York City or later on.

Several major players in the land-based casino industry have expressed interest in the process early on. Some of the operators that have announced preliminary plans for new casinos include Caesars Entertainment, MGM Resorts International, Wynn Resorts, and Las Vegas Sands.

Those anticipating a resolution this year, however, will be sorely disappointed. Robert Williams, executive director of the Commission, reviewed the process and its expected next steps in a meeting yesterday (25 March).

Decisions on the three potential locations are not expected until the second half of 2025, as the additional properties are subject to extensive evaluations about their environmental impacts.

Potential casino licensees' impact on the environment 
In order to get a licensing, everyone involved has to meet a bunch of standards. Among these regulations are the State and Local Environmental Quality Review Act and other similar statutes (SEQR).

These reviews will most likely not wrap up in the first quarter of 2025, according to Williams. In turn, this may necessitate that interested parties revise their applications, which will then be subject to additional approval. According to Williams, it would be a "administrative nightmare" to move on with the licensing procedure until the reviews are finished. 

Uniform Land Use Review Procedures (ULURPs), which are mandatory for all applications, might potentially cause additional delays. Such a process, similar to the SEQR, is unlikely to be finished until early next year.

Williams also pointed out that before a project can move forward, all applicants must demonstrate that they have the financial resources to cover all costs. Williams expressed concern that it would cause additional setbacks in the future if not executed properly.

"Limiting the size and scope of the proposal could be achieved by increasing the costs of accessing capital markets through the encumberment of funds well in advance of a licensing determination," he stated during the meeting.

Tips for New York applicants
The Commission has strongly encouraged applicants to use 2024 to make sure their ideas are fully compliant, because these processes can be quite lengthy. That means finishing up the necessary environmental evaluations and giving New York plenty of time to look over the ULURPs that go along with them.

Applicants will be in a "fulsome" position before the broader evaluation process begins, according to the Commission, who stated this preparedness will help. 

By late summer of 2025, the Commission intends to have finished additional evaluations pertaining to environmental factors and zoning, and Community Advisory Committees should be prepared to examine applications by the middle of the year. 

A final judgement on licenses could be possible by late 2025 if this happens, according to the agency. The winning parties would have to pay the licensing price now so they can launch their new casino a year later.

The Commission emphasised that the proposed schedule takes into account the legislative requirements of SEQR and provides enough time for local zoning approvals. The goal is to ensure that the most thorough and optimal plans for commercial casino development are established.

Hey, who needs a licence?
One of the three new licenses is generating a lot of competition. Empire City Casino will be converted into a full-scale commercial casino in November of last year, according to plans given out by MGM.

Video lottery racino operations include slots, table games, betting on harness races, and worldwide simulcasting at the Yonkers site. Nevertheless, MGM plans to expand the venue by adding a full-service casino with slot machines, live dealers, and a high-limit gaming section.

A BetMGM Sportsbook and Lounge, multiple dining options, and an entertainment arena with a capacity of 5,000 are among the additional planned amenities located on the premises.

Hard Rock International and New York Mets owner Steve Cohen revealed plans for a $8 billion casino resort near Citi Field baseball in November.

The project encompasses a Hard Rock hotel and casino as well as a separate sportsbook site, all of which are contingent upon the acquisition of licenses. Twenty acres of additional parkland will accompany the live music arena, snack hall and tailgate park.

At the same time, in October of 2022, Caesars Entertainment will open a casino in New York. The venue is expected to be opened in Times Square by Caesars in collaboration with SL Green Realty.

Construction of Caesars Palace Times Square is one of the proposed uses for the 1515 Broadway property. Roc Nation, the entertainment firm created by Jay-Z, is also supporting the bid.

Meanwhile, Las Vegas Sands plans to acquire the Nassau Veterans Memorial Coliseum's long-term lease in order to construct a facility on Long Island. A location in Wynn's Hudson Yards development in Manhattan is also being considered.