As New York nears the decision to grant up to three casino licenses in downstate areas, the process has taken a nervous and unpredictable turn, filled with legal challenges, strategic retreats, and intense lobbying efforts. The Gaming Facility Location Board (GFLB) is anticipated to deliver its licensing suggestions by December 1, following site evaluations of the final three contenders conducted earlier this week.
The evaluations signified the first in-person assessments from the five-member board, which had previously reviewed submissions privately. Kicking off in the Bronx, the GFLB explored Bally’s proposed casino location adjacent to the Ferry Point golf course before moving to Queens to inspect Resorts World NYC and the ambitious $8 billion Metropolitan Park initiative spearheaded by Mets owner Steve Cohen in collaboration with Hard Rock International.
While the GFLB’s recommendations are advisory, they will guide the final licensing choices to be determined by the New York State Gaming Commission.
Resorts World NYC, which currently runs a racino featuring slot machines, had beforehand committed to the most competitive terms, proposing a license fee of $600 million, with proposed tax rates for slots and table games set at 56% and 30% respectively.
Render of the proposed Bronx casino
However, Bloomberg reported on Monday that Resorts World might seek to amend those conditions, either aiming to lower its proposed rates or pressuring regulators to increase competitors’ rates for fairness.
Robert DaSalvio, president of Genting Americas East, which operates Resorts World, emphasized the site’s preparedness and economic advantages: “It directly contributes to funding for schools and the MTA, serving multiple purposes.” The casino asserts it could initiate full table game operations as early as March 30 if it secures a license.
In parallel, Metropolitan Park has faced a legal obstacle that nearly jeopardized its application. On November 12, the U.S. Tennis Association (USTA) took legal action against New York City, claiming the city’s support for the casino project was breaching its lease covering adjacent parkland used during the US Open without USTA consultation.
The lawsuit referenced a “superiority clause” in the lease that awards the USTA exclusive rights during the tournament, which includes parking, concessions, and protection from competing events.
In response, a Manhattan Supreme Court judge issued a temporary restraining order last week, preventing the city from finalizing a new pre-development agreement with the casino developers. However, by Monday, a spokesperson for Metropolitan Park, Karl Rickett, confirmed that an agreement had been signed in accordance with the court’s directive.
Render of $8 billion Metropolitan Park project
“We successfully executed our pre-development agreement with the city,” Rickett stated. “This advancement positions Metropolitan Park as a comprehensive redevelopment of the area that enhances existing sports venues to establish a top-tier sports and entertainment hub in Queens.”
A USTA representative commented to NY1: “We appreciate the court’s acknowledgment of our request and are glad the city incorporated the necessary language into its lease… which now confirms protections during the three-week duration of the US Open.”
The third competitor, Bally’s, has presented less ambitious financial proposals but remains a viable candidate. With major players like MGM Resorts, Wynn Resorts, and Las Vegas Sands withdrawing from the contention, the remaining three bids are under immense pressure from the state, which is banking on generating at least $1.8 billion in casino revenues to support its infrastructure and budgetary demands.
In a similar undertaking in 2015, only three of the four initially recommended licenses were ultimately granted.
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