New York’s Casino License Timeline Remains Unchanged After Governor’s Veto

New York’s effort to finalize the bidding process for three downstate casino licenses has encountered another delay. Governor Kathy Hochul has vetoed a legislative proposal to accelerate the timeline, prompting further debate about the protracted process.

State Senator Joseph Addabbo had championed the bill, S9673A, which proposed setting a firm deadline of August 31, 2024, for bid submissions. Despite its approval by both legislative chambers in June, the measure lingered unsigned, leaving the proposed timeline in limbo. Governor Hochul’s recent decision formally rejects the bill, arguing that it could unfairly benefit certain applicants over others.

“Changing the timeline … would likely have the impact of helping certain bidders and hurting others,” Hochul explained in her veto message, according to the New York Post. “I cannot a bill that aims to change the rules in the middle of the process.”

Gaming Board Prefers 2025 Deadline

The New York Gaming Facility Location Board had already expressed reservations about the bill’s earlier timeline. In a meeting held in late June, the board opted for a later deadline, setting June 27, 2025, as the cutoff for bid submissions.

Board member Stuart Rabinowitz emphasized that the August 2024 deadline proposed by lawmakers could have created significant challenges. “It would put some potential applicants under a lot of pressure and would favor some and disfavor others,” Rabinowitz stated.

The revised 2025 timeline ensures applicants have adequate time to meet all requirements, such as zoning approvals and environmental reviews. It also allows the board sufficient time to evaluate applications thoroughly before the December 31, 2025, approval deadline.

Senator Addabbo, chair of the Senate Committee on Racing, Gaming, and Wagering, expressed disappointment over the veto. In a statement shared with SBC Americas, he argued that his proposal sought to formalize a timeline rather than alter the process.

“Codifying a timeframe for an already unduly prolonged downstate casino process would merely improve the process by allowing it to actually begin accepting applications,” Addabbo stated.

He criticized the absence of a definitive timeline, suggesting that the veto would delay critical outcomes, including the creation of thousands of union jobs and over $2 billion in initial funding for the Metropolitan Transportation Authority (MTA).

“Without codifying a submission and completion date, said process can meander on as it has been for over two years already,” Addabbo noted.

The senator plans to revise and reintroduce legislation that aligns with the board’s 2025 timeline. “Codifying a timeframe does not ‘change the rules in the middle of the process’ … but will technically add validity to a process that is severely lacking structure,” he explained.

Bidding Process Still in Early Stages

MGM Resorts, and Las Vegas Sands already submitting proposals. Suggested locations include Times Square, Long Island, and the Bronx.

Despite these proposals, no formal bids have been filed yet. Applications must include essential elements like zoning changes and environmental impact assessments.

Each license is expected to yield at least $500 million for the state, with funds earmarked for the MTA. However, with the current timeline remaining unchanged, the process may extend well into 2025 before significant progress is made.

Source:

”Addabbo wants NYC casino bidding timeline codified after Gov. Hochul veto”, sbcamericas.com, November 27, 2024.