The future is uncertain: the bid to secure licenses to operate gambling establishments in New York faces a dismal future, where it seems that some legislators are cooling their heels and failing to make a prompt decision. And even if other legislators say the bill is all but approved, there simply is not enough time for operators to submit their proposals to make the casinos operational in the said timeline.

A bill aimed at accelerating the bidding process for three NYC casino licenses faces a dismal outlook, with the chances of approval diminishing as August progresses. The bill, designed to open the window for proposals by the end of August, now seems unlikely to achieve its objective due to the dwindling time remaining in the legislative calendar as well as the lack of public support from Governor Kathy Hochul.

The proposed legislation, introduced in May by Senator Joseph Addabbo and Assemblyman Gary Pretlow, sought to expedite the timeline for gaming companies to submit their proposals for the three casino licenses downstate. Initially, the plan was to allow bids to be submitted by the end of the month of July, but this deadline was later pushed to the 31st of August. If passed, the bill could have set the stage for a decision on the winning bidders by mid-2025. However, with less than three weeks left in August and the governor remaining silent on the matter, the likelihood of the bill's passage appears increasingly remote.

Governor's silence speaks volumes

While Governor Hochul has not explicitly stated her opposition to the bill, the absence of any public endorsement is telling. Political observers and industry experts alike interpret this as a sign that the bill may be doomed. Even if the Addabbo/Pretlow legislation were to be approved in the coming days, it is widely believed that there would not be enough time for gaming operators to prepare their proposals for what are expected to be some of the costliest casino hotels in the history of the US.

Assemblyman Pretlow himself conceded in an interview with Newsday that it seems unlikely the governor will act on the bill before the month ends. Meanwhile, Michael Hershman, Chief Executive Officer of the Soloviev Group, expressed a similar sentiment, describing the expedited licensing bill as a "moot point." Tribal casino giant Mohegan, in partnership with the Soloviev Group, has proposed a gaming venue near the UN building on the East Side of Manhattan, and like other contenders, they would have welcomed an early opening of the bidding window.

For these contenders, an accelerated process would have been met with enthusiasm. As the situation now stands, the New York Gaming Facility Location Board has set June 27, 2025, as the final date for the submission of applications. Following that, Community Advisory Committees will be formed immediately and will begin their statutory duties. The Board aims to decide by the 1st of December, 2025, with the New York State Gaming Commission expected to issue licenses by 31st of December, 2025.

If this timeline is adhered to, construction on the new gaming venues aren't likely to begin until 2026, meaning it could be several years before these facilities are fully operational.

Financial implications of delayed licensing

The delay in speeding up the casino licensing process has significant financial implications for New York State. By not moving swiftly to approve the legislation, the state is postponing the receipt of millions of dollars' worth of application fees along with the potential $500 million to be collected from every winning bidder. And some experts think that these winning bidder figures could climb to as high as $1 billion per license.

Without a doubt, the financial stakes are high, and the delay could also have competitive ramifications. If the approval for three casino licenses is delayed until the end of 2025, two of the potential licensees - Genting's Resorts World New York in Queens and MGM Resorts International's Empire City Casino in Yonkers - could hold a lead over a third competitor, but only while assuming these venues are selected for two out of the three permits. Both properties are already running as slots-only venues and rank among the highest-grossing casinos in the country. Furthermore, the operators of these venues have pledged to make significant enhancements if they are awarded traditional casino licenses. If they are successful, they can likely add other amenities as well as table games with minimal disruption to their ongoing business operations.

The legislation intended to expedite the bidding process for three New York-area casino licenses faces an increasingly uncertain future. With time running out in August and Governor Hochul yet to voice her support, the prospects of the bill's passage appear slim. The delay could have far-reaching financial and competitive implications, not only for the state but also for the gaming companies vying for these coveted licenses.