New York State Gaming Commission completes financial criteria for downstate casino proposals


The New York State Gaming Commission has finalized the fees for licenses and minimum capital investment mandates as it gears up to evaluate proposals for three downstate casino licenses.

The final decision will be influenced not just by financials but also by community attitudes, with community advisory committees, consisting of both state and local representatives, casting decisive votes on the feasibility of each application.

On Monday, the state’s Gaming Facility Location Board set a licensing fee of $500 million and mandated a minimum capital investment of $500 million for every applicant. Submissions are due by June 27, with the commission intending to award licenses by the end of the year.

Beyond these financial requirements, applicants are also tasked with completing zoning and environmental assessments by September 30, an area that has presented complications so far.

Bally’s Corporation recently secured necessary rezoning approvals for its project in the Bronx from both the New York City Council and state legislature. On the other hand, Thor Equities’ proposal for Coney Island is pending a de-mapping vote, anticipated no sooner than June 19. Additionally, all three proposals based in Manhattan are currently undergoing environmental assessments.

Committees Assessing Community Support

Upon receiving bids, each will be evaluated by a Community Advisory Committee (CAC) responsible for gauging local opinion. The commission has specified that each CAC will “examine the proposal, measure local backing, and ultimately issue a determination on whether there is sufficient support for the proposed initiative.”

Each committee is required to hold several meetings and conduct a binding vote, which necessitates a two-thirds majority for the proposal to proceed. In New York City, CACs will consist of the governor, mayor, a state senator, an assembly member, the borough president, and a city council member representing the affected area.

For areas outside the city, the committee will include the governor, county executive, state senator, assembly member, and the highest elected official in the locality. Currently, MGM Empire City in Yonkers is the only candidate outside of New York City.

Assessment and Evaluation Criteria

Proposals that gain CAC approval will need to submit a $1 million application fee. Applicants can suggest their own tax rate on total gaming revenue, with a minimum of 25% for slot revenues and 10% for other income streams.

The board will evaluate applications based on four key criteria: economic development (70%), local impact (10%), workforce development (10%), and diversity initiatives (10%). Final decisions from the board are expected by December 1, pending commission approval. The commission may grant up to three licenses, or potentially fewer.

Some analysts have deemed the financial requirements as high, noting that all new developments—aside from the current racinos—will require additional time before they can commence operations.

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