New York Retail Casino Expansion Could Alter Arrival of iGaming

Article by : Erik Gibbs Apr 4, 2024

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The journey to establish a new casino resort is often fraught with obstacles, and in the case of New York’s downstate licensing process, progress has been painstakingly slow. Unfortunately, this sluggishness isn’t just inconvenient—it’s also impeding other gambling expansion endeavors.

In the most recent update, the New York State Gaming Commission (NYSGC) delivered a disheartening message: licenses may not be issued until late 2025. This timeline poses a significant dilemma for Senator Joe Addabbo and his cohorts advocating for online casino legalization in New York.

Their efforts hinge on Governor Kathy Hochul’s willingness to entertain the idea, which, as per Addabbo’s stance, won’t happen until the retail casino licenses are sorted.

The NYSGC attributes the latest round of delays to the necessity for additional time to navigate through zoning regulations and conduct thorough environmental reviews. This news is a substantial setback for numerous stakeholders, especially Senator Addabbo and his allies pushing for online casino legislation.

Initially, there was optimism that the state would announce winning applicants by 2023. However, as time has progressed, that once-promising scenario has steadily receded into the future.

The NYSGC’s delay in appointing members for the Gaming Facility Location Board (GFLB) in October 2022 hinted at a prolonged decision-making process that would continue into early 2024.

Despite the GFLB’s initiation of proceedings in January 2023, state regulators were unprepared to accept applications by the end of that year, pushing the timeline for potential licensing further into 2025 or even 2026.

This delay casts uncertainty over the arrival of online casinos in New York, exacerbated by the intricate bureaucratic journey required for legalization and licensing.

Governor Hochul’s reluctance to support online casino discussions until the conclusion of the retail casino process further complicates matters, with neither of the proposed online casino bills making it into budgetary discussions.

Opposition from groups like the Hotel and Gaming Trade Council adds to the challenges, fearing job losses in retail casinos if online casinos are legalized.

Senator Addabbo faces hurdles, including his bill’s exclusion from budget discussions. With Hochul’s tenure extending until at least the end of 2026 and the ongoing retail casino timeline, the prospects for New York’s iGaming endeavor in the coming year appear grim unless there’s a change in approach.

Despite the frustrations of delays, the NYSGC deems them necessary to allow sufficient time for all applicants to complete environmental reviews. Executive Director Robert Williams anticipates the process’s completion by summer 2025, enabling the GFLB to review applications and make recommendations then.

The delay also accommodates four specific applicants requiring additional land review, including proposals for sites in Coney Island, the Bronx, Citi Field and Hudson Yards.

The state hopes for more applicants during this extended period, aiming to maximize competition for higher winning bids and increased revenue. The minimum bid is $1 billion, with several proposals already surpassing this, like Resorts World’s $5 billion bid.