New York State Gaming Commission confirms licence fee and timeline for downstate casino licences
The application window for New York casino licences closes this month.
US.- In a brief meeting on Monday, the New York State Gaming Commission’s Facility Location Board confirmed two key financial requirements for the expected downstate casino licences: a $500m licensing fee and a $500m minimum capital investment.
Some have suggested that the steep licence fee could favour New York’s two existing racinos, including MGM’s Empire City in Yonkers since they would be able to generate revenue straight away.
The board also confirmed that New York casino licence applications must be submitted by a week on Friday (June 27). Zoning approvals and environmental assessments must be complete by September 30. Up to three winning bids will be chosen by December 1.
Public support will be crucial to bidders’ chances. Projects will be assigned a Community Advisory Committee (CAC), which will review submissions and hold public meetings and votes to determine whether proposals have enough community support. Votes must be held by September 30, and bidders will need to pay the application fee before progressing to a review stage overseen by the Facility Location Board.
As part of their submissions, casino licence applicants have been invited to make competitive proposals for the tax rate they would be willing to pay, which would have to be at least 25 per cent on slot revenue and 10 per cent on other gaming revenue. The competitive approach suggests the state hopes bidders will offer over the minimum. Online sports betting in New York is taxed at 51 per cent, but physical casinos may struggle to compete with Atlantic City if the rate is overly high.
The Facility Location Board will then evaluate proposals based on four criteria: economic development (weighted at 70 per cent), local site impact (10 per cent), workforce development (10 per cent), and diversity initiatives (10 per cent).
Bally’s Corp has already gained rezoning clearance for its proposal in the Bronx, and the New York Senate has approved Bill S7121A, which would authorise the redesignation of land in Queens for New York Mets owner Steve Cohen and Hard Rock’s proposed casino resort.
In May, Wynn Resorts withdrew its Hudson Yards casino proposal amid community opposition. A vote on de-mapping consent for Thor Equities’ Coney Island bid could come this week.
