State board recommends licenses for all 3 remaining NYC casino sites

A state panel on Monday recommended issuing casino licenses to two applicants in Queens and one in the Bronx, awarding the three bidders who survived a yearslong process and sounding bullish on a business model that has overpromised elsewhere but that backers contend can generate billions of dollars for the state in just a decade.

The Gaming Facility Location Board recommended licenses be granted to Hard Rock casino adjacent to Citi Field, Bally’s at Ferry Point in the Bronx and Resorts World at Aqueduct Racetrack.

The panel's announcement sparked sustained outcries of "shame on you" that momentarily halted proceedings at a City University of New York meeting center in Manhattan. But it also put the almost-finishing touches on a casino siting process that began more than a decade ago.

The recommendations now advance to the full New York State Gaming Commission for its approval or rejection later this month. The commission typically accepts the board’s decisions.

The five-member location board signaled that economics and tax revenue were its primary considerations, noting the statutory criteria outlined in state law required 70% of its scoring to hinge on potential "economic activity and development." Site impact, workforce and diversity made up the other 30%. 

They noted that each of the three license winners must soon fork over a $500 million licensing fee that primarily will benefit the Metropolitan Transportation Authority to help upgrade mass transit.

They said the casinos project generating a total $7 billion in state tax revenue by 2036 and an additional $6 billion in hotel, property and other taxes over that span.

Board members said they saw no reason to withhold any of the three available licenses, even though they weren't obligated to issue all of them. They said they were confident of the financial projections, even while considering market saturation and a trend of casinos nationwide overpromising financial benefits.

"The downstate market is among the strongest in the nation, supported by density, income levels and tourism," board member Greg Reimers said in a prepared statement after the vote. "No alternative scenarios produce a comparable revenue or fiscal benefit."

Lengthy process

The state began this process more than a decade ago, starting with a 2013 statewide referendum and aiming to sanction four upstate and three downstate casinos. The four upstate casinos have been operating for a number of years — with varying degrees of success.

Downstate, more than a dozen companies once promised to bid for a license. Eight spent millions of dollars preparing site plans, figuring out zoning and unions, making public presentations and formally submitting bids in June.

But four were voted down by neighborhood screening panels and another, MGM/Yonkers Raceway, withdrew, citing economic factors.

That left just the two proposals in Queens and one in the Bronx.

Bally's and Hard Rock say they could open in 2030. Hard Rock has partnered with Steve Cohen, the hedge fund manager who owns the Mets. Bally's acquired its site from the Trump Organization — and will pay President Donald Trump's company a $115 million windfall now that it has won a license, per the parties' agreement.

Resorts World already operates a video slots machine parlor and hotel at Aqueduct and, therefore, always had promised it could be the quickest to open a full casino. It says it can open a significant portion of the full casino by June 2026.

Independent projections

Board chairwoman Vicki Breen said members were aware of the trend of casinos offering higher economic projections than eventually realized. She said they based their projections on reviews by independent consultants hired by the board, not the casino applicants themselves.

"We did look at every applicant very skeptically," Breen told reporters after the vote.

Asked whether the proximity of the three locations was a factor, Breen said board consultants concluded "the market was big enough."

She said the three also were different enough to avoid cannibalizing the market.

"They are very different in concept," Breen said, noting Bally's has an upscale golf course, Hard Rock will build an "entertainment district" nestled around Citi Field and near the U.S. Tennis Center and Resorts World/Aqueduct already has an "existing clientele" that it can grow.

Gov. Kathy Hochul, who has no direct role in the licensing decision, said the three projects could be beneficial economically but said the full Gaming Commission must look closely at each.

"The three projects approved today promise to unlock billions in funding for the MTA and create tens of thousands of jobs," Hochul said in a statement. "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."