New York officials hoping their constituents will cash in soon on the state’s three available downstate casino licenses pegged for in and around New York City were frustrated last week after the New York Gaming Commission indicated that the timeline for licensing will extend to late 2025.
The timeline was laid out at the Gaming Commission’s regular public meeting last week. They said the state likely won’t start accepting applications until the New York City Council approves a land-use change in zoning laws to permit casinos in all the boroughs, or before the project plans are evaluated by state-appointed advisory committees with respect to potential environmental impact and local support for the projects.
The zoning change was passed by the city Planning Commission last week, by a 10-2 vote.
The commissioners indicated the state-appointed Gaming Facility Location Board, which has the final say on casino approval, will not begin formally accepting applications until late this year or early in 2025, with actual license awards not expected until late 2025.
At the meeting, the Gaming Commission addressed two rounds of questions it has accepted from potential suitors for the three licenses.
“The board is cognizant of the many factors relating to the zoning requirement, including New York City’s proposed text amendment relating to gaming facilities and of the many zoning-related questions posed by applicants during the first two rounds of questions,” said Gaming Commissioner Robert Williams, according to Politico. “The updated timeline, expected to be finalized soon, will consider these and other factors.”
Williams said the lengthy environmental reviews of the 11 potential bids and applications are unlikely to be completed before Q1 2025, noting that moving ahead with the licensing process earlier would pose an “administrative nightmare.”
“Am I happy about it? No I am not,” said Commission Chairman Brian O’Dwyer. “I wish we could streamline it a little bit. But we have to, as they say, play the cards we were dealt.”
Financial considerations are another potential roadblock. Under the law, applicants must demonstrate they can fully fund their projects before they can proceed.
“The encumbering of money well in advance of a licensing determination could increase the costs of access to capital markets, which could reduce the proposal’s size and scope,” Williams said.
Williams advised bidders to use this year to resolve any environmental and financing issues in preparation for formal applications. The other issue that should be resolved is community support. The board requires a six-member Community Advisory Committee, appointed by local, state and New York City officials, to sign off on any project before construction can begin.
Stakeholders reacted with frustration.
“It’s absurd that it’s going to take three years to put shovels in the ground,” Queens Borough President Donovan Richards told the New York Post. “We’re trying to rebuild the New York economy. People are looking for good jobs and upward mobility. I hope they have a change of heart.”
Two of the 11 casino proposals for New York City are located in Queens.
Meanwhile, the 11 bidders are busy chasing local zoning approvals and community support for their projects, with the goal of the projects meeting all such requirements before formal applications are submitted.
