New York state finalized its budget last week and the decision on accelerating the selection of up to three casino licenses in and around New York City was part of the plan.
New York City will score at least one full-blown casino license, maybe two, according to the New York Daily News. The two favorites remain Genting’s Resorts World in Queens and MGM’s Empire Casino in Yonkers. Both operate with video lottery terminals with a 66 percent tax rate. Even at that rate, they are two of the highest-grossing gaming establishments in the U.S.
If they acquire a full license, the slot rate drops to 45 percent and 10 percent for table game revenues, which is the rate paid by the four casinos in the northern quadrant of New York state.
“We would love to have two casinos in New York City,” Mayor Eric Adams told reporters, adding that the gambling dens would “help boost our economy and tourism” as the city scrambles to bounce back from a pandemic-induced recession.
“We are getting closer to agreement, with consensus on major policy items,” New York Governor Kathy Hochul said in a general budget statement. “New Yorkers should know that progress is being made and that we will put in the time it takes to reach an agreement that delivers for them and moves our state forward.”
The question remains: will one of those licenses go to Manhattan. The opinions are mixed. Some support it; others object.
“Personally, I’m not a big fan of gambling,” Assembly Speaker Carl Heastie, representing a section of Northeastern Bronx, said earlier this month of Hochul’s plan.
“Totally support this,” Bronx Council member Rafael Salamanca, who chairs the council’s Land Use Committee, tweeted of Adams’ push for two city casinos. “Bring it to the South Bronx.
Energized by the $160.4 million in new taxes generated from mobile sports gambling since it launched in January state officials are hoping to clear the way for the three new downstate casinos, according to NY Online Gambling.
There’s a lot of interest from gaming companies not already involved. With a minimum license fee of $500 million, additional investment could total in the billions. Wynn Resorts Ltd., Bally’s Corp., Rush Street Gaming LLC and Hard Rock International have all indicated interest in bidding for a New York City area casino.
“We look forward to exploring this exciting opportunity,” said Rush Street Chairman Neil Bluhm, whose company operates a casino in Schenectady. “New York is an exceptional gaming market, and we believe the expansion of casino gaming will play a critical role in the state’s post-Covid resurgence.”
Las Vegas Sands has had conversations with baseball’s New York Mets owner Steve Cohen about building a casino next to the Mets’ stadium, Citi Field, in Queens.
“We’re looking at all the proposals,” Adams said. “We want the best for New York City. We want the economic development.”
Hochul says the budget, including casinos in New York City, a gas tax suspension and a stadium fot NFL’s Buffalo Bills, will benefit the entire state.
“We have to look at our people, and meet them where they are right now in a time of stress,” she said. “This budget will put money back in people’s pockets.”
