Evaluating the Potential Locations for a Casino in New York City: What We Know So Far
Casinos have been vying for a spot in New York City's lucrative market for years, but it seems they may finally have their chance. With approximately 23 million residents and a massive global tourism industry, the city holds huge potential for the gambling industry. Recently, elected officials have authorized up to three casino licenses for the downstate area, which includes the bustling metropolis. This move follows the legalized approval of Las Vegas-style casinos in 2013, with four sites initially opening upstate. However, the approval process is expected to be lengthy given the immense competition and potential profitability at play.
Announcement of casino locations
Gambling regulators in the state have indicated that decisions will not be made until later in 2023, at the earliest.
Authority to select the sites for the new casinos
The location of new casinos in New York State will be determined by the Gaming Facility Location Board, which has recently appointed three members with impressive backgrounds. Vicki Been, a renowned law professor and former deputy mayor for housing and economic development under Mayor Bill de Blasio, will bring her expertise to the board. Quenia Abreu, who previously focused on economic development projects in various locations, including Queens and Manhattan, will also be on the team. Stuart Rabinowitz, a well-respected lawyer who served as the president of Hofstra University for two decades, will provide valuable legal guidance. The board will review applications and make recommendations to the state’s Gaming Commission, which will make the final decision. However, the commission will only overrule the location board in cases where there is a problem with the applicant’s fitness or character.
Commencement date for the application process
The procedure commenced in the early part of January. At present, casino operators along with real estate developers are gearing up to present their formal proposals.
Importance of local support
When it comes to choosing the right casino bidder, local support is crucial. The process itself is designed to ensure that the surrounding community has a voice in the decision-making. Before state regulators even review a casino application, a local Community Advisory Committee is formed to determine the level of community support for the proposal. This committee holds public hearings and issues a formal finding to assess the proposed casino's impact on the community. In New York City, the committee is composed of six members, each chosen by various government officials. The project must receive at least two-thirds of the committee's approval before proceeding to the next stage. This process ensures that the stakeholders in the surrounding area, including government officials, have a say in the decision-making process.
Mayor Eric Adams's viewpoint about the presence of casinos in the city
Upon securing the Democratic primary victory last year, Mr. Adams took a vacation in Monaco, a well-known gambling hub, and has since expressed optimism about the idea of casinos.
In March, he shared with journalists his aspiration for two casinos to be established in New York City, viewing them as economic stimulants.
The mayor has significant connections to the gaming industry. During his tenure as a state senator, he chaired the Racing, Gaming, and Wagering Committee and found himself in controversy when the state selected a supplier of video lottery terminals at the Aqueduct Racetrack in Queens. A state inspector general’s report in 2010 criticized him and his peers for displaying “exceptionally poor judgment” by mingling with lobbyists and accepting campaign donations from individuals linked to the bidders.
This year, it was revealed by The New York Times that Mr. Adams had conferred a lucrative city role to one of his intimate friends, Timothy Pearson. This occurred while Mr. Pearson was simultaneously working at the racino, a term used for a horse racetrack equipped with digital games but lacking human dealers, located near the Aqueduct Racetrack. Not long after, Mr. Pearson and the racino chose to sever their ties.
The racino in Queens is recognized as the main source of employment for members of the hotel workers' union. This union recently modified its name to incorporate the word "gaming," rebranding itself as the Hotel and Gaming Trades Council. During Mr. Adams's mayoral campaign, a lobbyist representing this union jointly oversaw a super PAC that supported his candidacy.
Governor's Role
Governor Kathy Hochul has stated that she will not interfere in the bidding process, though she still holds a significant capacity to wield influence. She essentially presides over the New York State Gaming Commission, which is responsible for establishing the board that will manage the casino application procedure.
Are all the three casinos going to be situated in New York City?
There's no certainty that all three casinos will be situated in New York City. Many politicians and lobbyists are of the view that the two established racinos are the main contenders for two of the three available licenses.
One of these is the Resorts World New York City by the Genting Group in Queens, and the other is the Empire City Casino by MGM Resorts International in Yonkers, just to the north of New York City.
Should they receive full casino licenses, their services could extend to include live table games like poker and blackjack. For blackjack enthusiasts, the increase in gaming options might open up opportunities to experiment with various blackjack strategies when approaching the tables.
Both racinos already possess the necessary infrastructure to quickly transition into full-fledged casinos. Additionally, they have a large number of lobbyists, significant campaign donations to relevant elected officials, and robust connections with local communities and the union representing their workers.
The real contest, however, is believed to be for the third license.
Expected Proposals
There are several proposals for casino locations in New York City:
Hudson Yards: Related Companies and Wynn Resorts are planning to build a casino on the undeveloped portion of Hudson Yards, targeting an upscale audience due to its proximity to the Javits Center.
Times Square: SL Green Realty Corp. and Caesars Entertainment propose a vertical casino at 1515 Broadway, promising to dedicate profits to improve sanitation and safety in the area.
Coney Island: Joseph Sitt, founder of Thor Equities Group, Saratoga Casino Holdings, and the Chickasaw Nation proposes a casino complex with hotels, an indoor water park, and museums in Coney Island, Brooklyn.
Nassau Coliseum: Las Vegas Sands plans to buy the lease of the Nassau Veterans Memorial Coliseum site for a massive casino and hospitality complex with luxury hotels, restaurants, and a day spa.
Saks Fifth Avenue: Hudson’s Bay Company aims to bid for a high-end casino inside its New York flagship store.
Midtown East: The Soloviev Group and Mohegan plan a casino near the United Nations headquarters with a museum dedicated to democracy, a hotel, rental and condo apartments, and a public green space.
Midtown West: Larry Silverstein proposes mixed-use, high-rise towers housing a casino at 11th Avenue and 41st Street, partnering with Watche Manoukian, owner of Parx Casino.
Willets Point: Steven Cohen, owner of the New York Mets, is discussing with Hard Rock to develop a casino next to the team’s stadium in Willets Point, Queens.
Trump Golf Links: Bally’s Corporation plans to develop a casino at the Trump Golf Links at Ferry Point, after agreeing to buy out the license to operate the golf course.
Bonnie Haydon, mother of Vanessa Trump, has listed her three-bedroom condominium in Southampton’s Whitefield community for $3.75 million.