On Dec. 1, the NYS Gaming Facility Location Board voted to recommend casinos for locations in Metropolitan Park at Willets Point, Queens, Resorts World New York City at the Aqueduct Racetrack in Queens and Bally’s Bronx in Throggs Neck. The five-member board will provide its recommendations to the state Gaming Commission, which is expected to approve the plans before Dec. 31.
“The Gaming Facility Location Board has performed a true public service. These five individuals volunteered hundreds of hours to review and digest thousands of pages of complex application material and ultimately made the best selections for the State of New York. We are all thankful for their dedication and service for what has been up until now a thankless task. We entered this process with a tabula rasa, and are concluding with three impressive projects that will transform communities, establish career opportunities for residents, and drive much-needed revenue to the MTA, public schools and the City.
“The Gaming Commission has already undertaken the background investigations of the applicants and is expeditiously applying its statutory license suitability criteria to ensure that these casinos are operated with utmost integrity and fiscal responsibility. A New York gaming license is a privilege – and this Commission will ensure those entities fortunate enough to be selected for licensure meet New York’s rigorous standards.”
Governor Kathy Hochul said, “From the moment that three downstate casino licenses were authorized in the 2022 State Budget, I have been clear: any approved project must provide real benefits to its community and have sustainable economic plans. I am grateful to Chair Been and the Gaming Facility Location Board for their careful review of the applications according to these high standards.
“The three projects approved today promise to unlock billions in funding for the MTA and create tens of thousands of jobs. It is critical that they keep those promises. I look forward to the Gaming Commission’s review of the Board’s recommendations in the weeks ahead.”
The City of Yonkers had initially hoped for the MGM casino at Yonkers Raceway to win approval of one of the three licenses. But in a decision that has never been completely explained, MGM bailed out at the last minute and withdrew its application.
After MGM’s move, the hope for vast majority of Yonkers residents and stakeholders who wanted a Gaming Casino at Yonkers raceway was for the Gaming Commission to award only two licenses, so that the City could find another applicant to apply for a license.
That hope ended on Dec. 1. Yonkers Mayor Mike Spano said, “I am deeply disappointed in New York’s decision to move forward with the award of three casino licenses all within New York City. But the decision has been made, and now my focus is singular: protecting our city’s number one taxpayer and largest employer. I am asking the Governor and the state to recognize the new realities before us and work collaboratively with Yonkers and MGM on a meaningful plan to strengthen this facility. We need to expand its potential, transforming it into a true entertainment destination. Failure is not an option for our residents, our workforce, our city’s future.”
The most likely explanation as to why MGM bailed out was when the NYS Gaming Commission released rules about how long each casino license will last. These rules came very late in the game, and required that all licenses will last at least 10 years, but bigger projects are entitled to longer licenses — 15 years if the project’s investment is between $1.5 billion and $5 billion, 20 years if between $5 billion and $10 billion, and 30 years if greater than $10 billion.
A 15 year term was determined by MGM to not be economically feasible. But Bally’s investment is also under $5 billion so they should also only be entitled to 15 years. Bally’s also has to pay the Trump Corporation $115 Million for the land in which they will build their Bronx location, next to a Trump golf course.
The gaming casino at Yonkers Raceway was estimated to create thousands of construction jobs and 2,000 permanent new jobs, and jobs for working-class residents of Yonkers.
Recently, many NYC residents expressed opposition to the Queens casino expansions.
Many Casino insiders thought that “only one license will be issued to Citifield. Resorts World bid so high on their tax rates that they’re rumored to be trying to get out of this licensing round and hope for a 2nd shot. There’s a lot of grumbling about their financial stability & the fact that they’re leaving Sullivan County high and dry while investing billions downstate. They’ve spent more money on ads for their NYC casino than the revenue share Sullivan County gets from their Catskills casino. Upstate feels like Resorts World has given them the middle finger.
“Yes, I think the state process was flawed. Too much uncertainty, that’s why companies like Wynn, Las Vegas Sands, and MGM stepped out. I’m surprised they awarded three licenses, but also interested to see if the commission agrees and awards all three.”
The two logical locations for a gaming license is the two racetracks that currently have VLT’s, video lottery terminals; Yonkers Racway and Belmont Race Track. Belmont got a license, while Yonkers got screwed.
Why is a gaming license so important for Casinos? One Yonkers resident posted, “I moved to Yonkers in or around 2013. I’ve only been to Empire city casino twice- why? No table/live card games.”