NY Gov Reportedly Against Casinos to Fund Public Transportation

Article by : Erik Gibbs Jul 1, 2024

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On June 26, New York Governor Kathy Hochul announced her administration’s commitment to managing the current budget without resorting to additional revenue sources.

This decision underscores her coordination with Metropolitan Transportation Authority (MTA) leaders to secure funding for public transportation despite existing budgetary constraints. The announcement has significant implications for various legislative and financial efforts underway in New York.

Following Hochul’s statement, the legalization of iGaming in New York now seems unlikely. Proponents of New York online casinos had been advocating for a special legislative session to address MTA funding through the passage of SB8185.

This bill was anticipated to generate $1 billion in revenue, potentially compensating for the $1 billion shortfall caused by the June 5 pause of the congestion pricing program, initially intended to finance the MTA.

Instead of pursuing new revenue through a special legislative session, Governor Hochul unveiled plans for MTA cost-cutting and project delays. She reassured the public that, while some contracts might experience temporary adjustments, New Yorkers should not be concerned about the completion of planned projects.

The MTA has committed to leveraging all available resources to maintain the system’s good repair status, advance priority projects, and prepare for new contracts once new revenue sources are identified in the next year’s budget.

On June 25, state Senator Joseph P. Addabbo Jr. voiced his skepticism regarding the passage of the iGaming and iLottery bill (SB8185) in 2024, given the legislature’s adjournment. Representing Woodhaven, Addabbo had hoped for the codification of deadlines in SB9673 to expedite the selection process for downstate retail casino licensees.

Although SB9673 was approved on June 7, it has yet to be signed by Governor Hochul. The bill sets March 2026 as the latest due date for selecting casino license bidders. Addabbo estimated that the state could potentially generate $2.75 billion to $3 billion from application and license fees, which would be allocated to the MTA.

The sitting board responsible for overseeing the casino licensee selection process is scheduled to meet on June 27 in Harlem. This meeting is part of the ongoing efforts to address MTA funding and budget adjustments.

Governor Hochul mentioned potential temporary adjustments to contract timelines but reassured the public that planned projects would still be delivered. The MTA has pledged to use all available resources to maintain the system’s good repair and continue advancing priority projects.

Additionally, the MTA is preparing to activate new contracts after new revenue sources are designated in the next budget cycle. Governor Hochul highlighted additional opportunities for savings and revenue improvements within existing MTA operations.

Under her direction last year, the administration and MTA leadership identified over $400 million in operating efficiencies, and Hochul expressed confidence in continuing these efforts.