For quite some time, the idea of a casino in New York City has captivated casino companies, offering them a chance to capitalize on one of the largest untapped gambling markets in the United States. As a global tourist hub and home to approximately 23 million residents, the city holds immense potential for the gambling industry. In April, elected officials in Albany took a step closer to realizing this dream by authorizing up to three casino licenses for downstate New York, which includes New York City, Long Island and Westchester County.

However, the road to establishing these casinos is a complex one, given the high stakes involved. State gambling regulators have made it clear that decisions on the locations will not be made until at least later in 2023.

The entire application process will be overseen by the state’s Gaming Facility Location Board, which has recently appointed three members to guide the process: Vicki Been, a professor at New York University School of Law and former deputy mayor for housing and economic development; Quenia Abreu, president of the New York Women’s Chamber of Commerce with a background in economic development projects; and Stuart Rabinowitz, a lawyer with expertise in the gaming industry.

Once the applications are reviewed, the Gaming Facility Location Board will provide recommendations to the state’s Gaming Commission, which will have the final say in awarding the licenses. The commission has stated that it will only overturn the location board’s decisions if there are concerns regarding the character and suitability of an applicant.

The Process So Far

The application process began in early January, and casino operators, as well as real estate developers, are now in the process of preparing their official proposals. The support of the local community plays a crucial role in the process, as strong opposition from residents can potentially halt a bid even before state regulators review the application. Each application will have a local Community Advisory Committee formed, responsible for conducting public hearings and determining the level of community support for the proposed casino.

In the case of New York City sites, the local committees will consist of six members, each chosen by the governor, the mayor, the local state senator, the local State Assembly member, the borough president and the local City Council member. State regulators will only evaluate an application if at least two-thirds of the committee members approve of the project.

Mayor Eric Adams has shown a positive stance toward casinos, emphasizing their potential economic boost. With his previous experience as a state senator and chairman of the Racing, Gaming, and Wagering Committee, Adams has deep connections to the industry. However, any potential conflicts of interest will face scrutiny due to his past involvement in scandals related to the selection of a video-lottery machine provider at the Aqueduct Racetrack in Queens.

Governor Kathy Hochul has expressed her intention to remain uninvolved in the bidding process, but her control over the New York State Gaming Commission gives her significant influence.

Potential Contenders for Casino Licenses

While existing racinos in the region, such as Resorts World New York City in Queens and Empire City Casino in Yonkers, are considered strong contenders for two of the three licenses, the competition for the third license is expected to be fierce. New Jersey with dozens of legal online casinos is an example to follow for the NY state, where betMGM casino may go live in 2024, if the bill passes.

Several proposals have already been announced, showcasing the variety of potential locations. Related Companies and Wynn Resorts are bidding for a casino at Hudson Yards, while SL Green Realty Corp. and Caesars Entertainment have proposed a vertical casino in Times Square. Joseph Sitt, in partnership with Saratoga Casino Holdings and the Chickasaw Nation, aims to build a casino in Coney Island.

Las Vegas Sands plans to purchase the lease of the Nassau Veterans Memorial Coliseum site on Long Island, and Hudson’s Bay Company hopes to bid for a high-end establishment within its flagship Saks Fifth Avenue store in Midtown Manhattan. The Soloviev Group, partnering with Mohegan, envisions a large-scale project near the United Nations headquarters in Midtown East, featuring a casino, a Ferris wheel and public green space.

As the process unfolds, all eyes are on the developments in New York City, eagerly awaiting the final decisions on casino locations and the potential transformation of the city’s gambling landscape.