The deadline for about a dozen bidders competing for three downstate casino licenses in or around New York City will remain unchanged.
Governor Kathy Hochul vetoed a bill that proposed moving up this deadline.
According to the New York Post, Gov. Hochul stated in her veto message, “Changing the timeline …. would likely have the impact of helping certain bidders and hurting others. I cannot support a bill that aims to change the rules in the middle of the process.”
The measure, approved by lawmakers in June, would have mandated bidders to submit their proposals for review in August of this year, regardless of whether they had secured the necessary local zoning or other approvals.
Gaming Licenses Considered Golden Opportunities in New York
The 2013 gaming bill allowed for the creation of four upstate and three downstate licenses for slot machines and live dealer table games. It also later added sports betting to the gaming options.
The bill included a 10-year delay in issuing the downstate licenses. This delay aimed to give upstate casinos time to strengthen their customer base without facing competition from downstate counterparts.
The three downstate licenses are highly sought after, with major casino operators preparing to submit bids. These new resort developments will require each operator to pay a $500 million licensing fee upfront. The state anticipates that these developments will generate crucial tax revenue, especially as the taxpayer base shrinks and the need for funding significant public transportation infrastructure upgrades becomes more urgent.
Addabbo Hoped Deadline Would Change
New York Senator Joseph Addabbo Jr. openly expressed frustration with the lengthy process.
Despite Governor Hochul's firm stance and lack of indication that she would adjust the deadline, Addabbo remained hopeful she might reconsider.
He tried to persuade her that accelerating the process would benefit the state. Addabbo argues that doing so would generate an immediate $1.5 billion influx, especially crucial if Hochul had abandoned the “congestion toll” plan, which would raise tolls into Manhattan.
But she didn’t.
The MTA board approved the congestion toll plan, instituting a new base toll of $9 for entry below 60th Street, set to take effect in early January. This initiative aims to generate $15 billion in funding for projects such as signal modernization, accessibility enhancements, and the expansion of the Second Avenue Subway line, among others. It marks the first tolling plan of its kind in the nation.
Addabbo also thought speeding up the process would create thousands of jobs by establishing casinos. But that won’t happen either now that Hochul vetoed the bill.
Addabbo is also the chair of the New York Senate's State Racing, Gaming and Wagering Committee.
What’s Next For Downstate Casino License Bidders?
Eleven bidders are vying for the coveted downstate gaming licenses. In addition to the Nassau Coliseum proposal, casino projects are also being worked on in Queens, at Hudson Yards, and Resorts World, New York City.
According to the state’s Gaming Facility Location Board timeline, casino bid applications are due by June 27, 2025. Community Advisory Committees, composed of elected officials from the impacted areas, will review and vote on the bids for approval or rejection.
The board will then vote on which casino projects to recommend to the state Gaming Commission, which is expected to give final approval by the end of the year (Dec. 1, 2025).
Addabbo noted that constructing new casinos could take up to three years once licenses are awarded. So, there's still a long way to go.
