Casino payday on the way must be well spent

New York State officials are all in but it remains to be seen whether their jackpot will be as lucrative as they hope.

On Monday, the state's Gaming Facility Location Board announced it had selected all three remaining applicants — Hard Rock Metropolitan Park at Citi Field, Resorts World at Aqueduct Racetrack and Bally's at Ferry Point in the Bronx — for licensing to build full casino resorts. The state Gaming Commission still must grant final approvals this month but it's unlikely anything will change.

Each applicant must pay a $500 million license fee, potentially adding $1.5 billion to state coffers by the end of the year. The location board estimates that by 2036, the three casinos could produce $7 billion in gaming-related tax revenue and $5.9 billion in additional tax revenue, through the promised hotels, restaurants and other sales.

It could be a big payday. Gov. Kathy Hochul and the State Legislature would be wise not to spend it all at once. There are legitimate concerns that casino revenue could fall short, as online gaming continues its hot streak. A weakening economy could also keep gamblers at home.

State officials have been eyeing this revenue source for years. The gaming-related revenue is to be split between the Metropolitan Transportation Authority and public education; both are depending on it. The MTA operating dollars must boost both city transit and the Long Island Rail Road, and the schools' money is key for goals like expanding universal pre-kindergarten on Long Island.

The funds should be well spent and not diverted to the general fund. A public dashboard that illustrates how much revenue comes in, and how it is being spent, would be helpful.

Then there are the questions of whether three full casinos in New York City are good for Long Island. Studies have shown the impact of the two Queens casinos on Jake's 58 casino in Islandia could be minimal, especially if Jake's ongoing expansion helps it maintain its standing. Also unknown: What will happen to Nassau County's state-allotted 1,000 video lottery terminals, now located at Resorts World? Nassau officials may have to negotiate a new arrangement with the casino operator, or find a new spot for the lucrative machines. Since it's now unlikely there will be gambling at the Nassau Hub anytime soon, it's time to finally determine and develop a Plan B for the underused land. 

If done right, the three planned casino resorts could become vibrant entertainment destinations with economic and fiscal impacts that ripple beyond New York City. Even without a resort of its own, Long Island could benefit, especially from the added statewide revenue, a renewed look at the VLTs, and the potential for a tourism boon that reaches beyond Queens' borders. But Hochul and other state officials must play their hand well, so the region and the state can be winners.