New York Unlikely To Add New Casinos Until Late 2025

Article by : Erik Gibbs Mar 28, 2024

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Amidst the anticipation surrounding the allocation of three coveted casino licenses, the state Gaming Commission dropped a bombshell last week, declaring a postponement on issuing any licenses or commencing the application process until at least late 2025.

Despite the State Legislature’s hopes for an earlier start to the bidding war, having passed legislation in 2022 to expedite the licensing procedure, the Gaming Commission’s decision has thrown a wrench into those plans.

Among the eager contenders for the licenses is the Las Vegas Sands in Uniondale, situated at the Nassau Coliseum, alongside ten other interested parties.

According to Robert Williams, the Executive Director of the Gaming Commission, the primary rationale behind the delay is to allow for the approval of a citywide zoning change, expected to materialize in the coming weeks, along with overcoming various regulatory hurdles still looming for the applicants.

Applicants face a maze of complex and protracted state environmental evaluations, with stringent requirements to fulfill, all while navigating through the intricate landscape of state and city zoning and land reviews set to unfold throughout 2024.

Acknowledging the multifaceted nature of zoning requirements, the Gaming Commission issued a statement expressing awareness of New York City’s proposed text amendment regarding gaming facilities and the array of zoning-related inquiries raised by applicants in previous rounds.

The commission emphasized that the updated timeline, currently in the finalization stage, will take into account these factors and others yet to be delineated.

This revised schedule could prove advantageous for applicants at various stages of the regulatory process. For instance, it may afford Sands more time to address specific concerns, such as the legal entanglement stemming from the Hofstra lawsuit against Nassau County.

This legal battle saw Judge Sakira Kapoor’s ruling in November 2023, which found the county in violation of the state’s Open Meetings Law and the State Environmental Quality Review Act.

Consequently, the lease agreement Sands inked with the county in May of that year was nullified, compelling Sands to initiate the entire process anew.

As per the ruling, the county’s oversight led to inadequate notification of residents regarding public meetings and the lease transfer.

Crucially, the agendas for these meetings failed to include essential references to Sands, Nassau Coliseum, Nassau Hub, or the proposed development.

In a bid for state approvals, Sands finds itself pitted against Steve Cohen, owner of the New York Mets and partner with Hard Rock International. Cohen aims to erect his envisioned casino in the Citi Field parking lot in Queens, intensifying the competition.

Given their proximity, the likelihood of both casinos securing a license appears slim, raising stakes for both contenders in the heated race for regulatory approval.