New York Finalizes $500 Million Casino License Fee, Capital Minimum
In a meeting that lasted less than 10 minutes on June 16, the New York State Gaming Commission’s Gaming Facility Location Board finalized two significant details for three available downstate casino licences.
The board voted unanimously to approve a $500 million license fee as well as a $500 million minimum capital investment. Bids will be due by June 27 and the commission will award licences by the end of the year.
There are several other steps applicants will have to navigate. For example, all entitlement processes such as zoning and environmental reviews must be completed by Sept. 30. Zoning issues in particular have created a time crunch this month, as most of those cases have tight windows.
Bally’s Corp secured rezoning approval for its Bronx bid from both the New York City Council and the state legislature last week. The Coney proposal from Thor Equities and other partners on Coney Island still needs de-mapping approval and a vote on that won’t come until June 19 at the earliest. All three Manhattan bids are undergoing environmental reviews.
So far, the various New York bidders have spent considerable time fulfilling the necessary obligations related to the process. This includes garnering community support and endorsements in addition to all requisite approvals. Once the official bids are finalised, the process will in essence begin again.
Every bid that is submitted will have a community advisory committee assigned to it. Per the NYSGC, these CACs “will be created to review the application, gauge local support and ultimately issue a finding determining whether there is adequate support for the proposed project.” Each CAC will host multiple meetings garnering feedback and each will hold a binding vote on whether a bid can continue, with the threshold for approval a two-thirds majority.
The makeup of each CAC will depend on whether a bid is located inside of New York City or out of it. For those inside the city, each CAC will consist of Gov. Kathy Hochul, NYC Mayor Eric Adams and the applicable state senator, assembly member, borough president and city council member.
As of now, only the proposal by MGM Empire City in Yonkers is outside of the city. MGM and any other such bidders will have a CAC consisting of Hochul and the applicable county executive, state senator, assembly member and the locality’s senior elected official. For cities, that is the mayor; towns would be the town supervisor; and villages would be fulfilled jointly by the village mayor and town supervisor.
CACs must hold their respective binding votes by Sept. 30. Bidders receiving their approval will then pay a $1 million application fee and submit all previous materials to the facility location board, which will embark on its own review process. Notably, the tax rate will be negotiated as part of the bidding process.
The commission states that an applicant “may propose a tax rate on gross gaming revenue as part of its application, so long as the tax rate is at least 25 percent for slot gross gaming revenue and 10 percent for gross gaming revenue from all other sources.”
There are four primary categories the board will review: economic development, local impact siting, workforce enhancement and diversity frameworks. Economic development will constitute 70 percent of the consideration, with the other three categories representing 10 percent each. Selections must be made by Dec. 1.
Selections made by the board will then be considered once more for a final ruling by the commission. Three licences are available, but the commission has discretion to issue fewer, or none.
Sweepstakes Face Tough Week from Legislators, Regulators
It’s safe to say that this past week was decidedly unfavorable for sweepstakes operators.
On June 17, regulators in Louisiana and Mississippi, both big retail casino states, issued a spate of cease-and-desist orders to various sites deemed to be operating illegally. These include offshore sportsbooks and iGaming sites as well as sweepstakes. In Louisiana’s case, there were 40 orders issued, with Mississippi issuing 10.
Both states took aim either directly or indirectly at VGW Holdings, the secretive Australian-based sweepstakes giant. VGW operates several well-known brands such as Chumba Casino, LuckyLand Slots and Global Poker. Louisiana sent a cease-and-desist order directly to VGW whereas Mississippi issued one to Chumba, regulators announced.
Outside of legislative and regulatory scrutiny, the company has come under fire from investors for its diminishing financial reporting. Founder Laurence Escalante earlier this month defiantly declared that anyone unconvinced of his leadership should sell off.
The Louisiana Gaming Control Board order comes shortly after a bill banning sweepstakes altogether was passed through the state legislature. However, Gov. Jeff Landry vetoed the bill on June 13, saying that regulators were capable of policing their own industry.
This initially drew praise from the Social and Promotional Games Association, a vocal trade group representing some sweeps operators but not VGW.
“Governor Landry’s veto is a powerful affirmation that not all online games are gambling and that innovation should not be met with prohibition,” the SPGA said at the time. “This legislation blurred critical legal distinctions and risked punishing legitimate businesses that comply with well-established sweepstakes laws and offer free-to-play experiences.”
A separate sweeps group that does include VGW – the Social Gaming Leadership Alliance – said the veto “gives all stakeholders an opportunity to pursue a sensible solution to allow Louisiana residents to continue playing online social games” and create a licensing framework.
But that goodwill faded quickly, as the board saw it differently. In a release, the LGCB called its crackdown a “show of enforcement strength.” Chairman Chris Herbert said it sent a “clear message” that “Louisiana will not tolerate illegal operators who put our citizens at risk and undermine the fairness and integrity of our gaming industry.”
While the Mississippi Gaming Commission was not solely targeting sweepstakes in its orders, it nonetheless affirmed via release that there is no legal online gambling at all in the state, sweeps included.
“While some games might be advertised as free to play, if there is an opportunity for the player to provide consideration and win something of value, and an element of chance exists in the game outcome, it is gaming under Mississippi law,” the commission said.
In addition to those developments, the New York Legislature also on June 17 passed its own sweepstakes ban. The legislation, Senate Bill S5935A, passed both chambers in less than a week, including a 141-0 vote in the state assembly.
If the bill is signed by Gov. Kathy Hochul, the Empire State would join Montana, Connecticut and Nevada in enacting sweepstakes bans this year.
In early March, New York also issued its own flurry of 26 cease-and-desist orders to sweeps sites, in this case from Attorney General Letitia James. All three of VGW’s primary brands – Chumba, LuckyLand and Global Poker – were included in the actions. In late May, the company announced it was ceasing its sweepstakes operations in the state.
“These so-called ‘sweepstakes’ games are unscrupulous, unsecure and unlawful,” New York State Gaming Commission Chairman Brian O’Dwyer said via statement. “I have been very vocal about the need to crack down on these operations and I am thrilled that Attorney General James has taken this significant step to eradicate the illegal gambling market. We encourage those of age who wish to gamble to do so with legal operators.”
Immigration Raid Conducted at Louisiana Track
As immigration crackdowns continue to create controversy around the U.S., state and federal authorities conducted a raid June 17 at Delta Downs Racetrack, Casino and Hotel in Calcasieu Parish, La.
According to the Associated Press, the raid led to more than 80 arrests. The agencies involved included Immigrations and Customs Enforcement, the FBI and Border Patrol, as well as state and local police. Authorities had been tipped off about businesses employing undocumented stall workers at the track, per the AP.
Boyd Gaming, which owns Delta Downs, said in a statement: “Our Company complies fully with federal labor laws, and to our knowledge, no Delta Downs team members were involved in this matter. We will cooperate with law enforcement as requested.”
Las Vegas F1 Extended Through 2027
The Formula One Las Vegas Grand Prix has been extended for two years through 2027, per the Associated Press. Originally, the event was added to the calendar on a three-year contract, although Clark County approved a 10-year contract. This November will be the third installment.
Overall, the race has had mixed reviews in its first two years. The first event was beset by months of severe traffic delays and construction, to the extent that some businesses filed lawsuits for damages. However, the race itself was fantastic and generated $1.5 billion in economic impact. The second iteration featured far fewer disruptions but also less-than-stellar performance, clocking less than $1 billion.
“We want to make sure that we’re continuing to evolve what we’re doing. But the intent is a much longer-term arrangement,” Emily Prazer, president of the Las Vegas Grand Prix, told the AP. “As we all know, the race has had its challenges, but we’re coming out the other side. So we want to make sure that it continues to work for both sides.”
Lawsuit Over Failed Las Vegas Arena Project Postponed
A racketeering lawsuit filed against former UNLV basketball player Jackie Robinson and his company All Net Land Development LLC has been postponed until September, per the Las Vegas Review-Journal. Proceedings were originally supposed to start this month.
Robinson tried for many years to develop an NBA-ready arena on the site of the former Wet n’ Wild waterpark in between the Fontainebleau and the Sahara. However, the project never got off the ground despite the investment he received, and Clark County ultimately pulled the plug on the project in 2023.
An investor in the project from California subsequently filed suit against Robinson, alleging he misappropriated his and others’ funds with no plans of actually following through on the development. That land has since been acquired by LVXP, another developer who has taken up the quest of building an NBA arena there.
Fairmount Park Celebrates Reopening
Accel Entertainment’s recently acquired Fairmount Park Casino & Racing, the first racino in Illinois, hosted a grand opening week June 16-20. Various promotions were held each day, ranging from drawings, food deals and more.
“This celebration is a thank you to the guests who’ve already helped make our opening this season a success and an invitation to everyone to come experience everything Fairmount Park has to offer,” Fairmount’s Vice President of Marketing Dana Mueller said in a statement. “Grand Opening Week combines the excitement of live racing and casino gaming with live music and outdoor activities for all ages.”
