Governor Kathy Hochul and the State Legislature have determined that downstate New York may receive three full casino licenses sooner than expected.
The licenses are part of the April 2022 state budget. This budget finalized the awards process and availability for full casino licenses. This allows establishments to install more expansive gambling attractions including slot machines, poker, blackjack, and roulette.
To date, there have been 11 casino license applications announced, including one in Yonkers. MGM Resorts International’s Empire City Casino in Yonkers, is Westchester County‘s hopeful for one of the full casino licenses. The “racino” is currently limited to horse racing bets and slot machines. Expansion could be a positive development for the casino, the local economy, and the state through taxation.
Economic Growth and Tax Revenue
In an interview with Gotham Gazette, State Senator Joseph Addabbo, chair of the Senate’s Committee on Racing, Gaming, and Wagering, outlined the potential benefits of full casino licensing and expansion.
“There is billions in revenue, there’s thousands of construction and post-construction jobs. So the opportunity here doesn’t come about every couple of years, this is a one-time shot. We’re not talking about more licenses. This is three, and that’s gonna be it for the foreseeable future.”
State Senator Joseph Addabbo (D – Queens)
New York’s casino licensing initiative intends to stimulate the economy and expand job creation throughout the state. From building and planning jobs during the casino’s construction phase, and jobs within the newly-expanded casinos to the broader benefits of taxation for citizens of New York, the three licenses have the potential to impact economic growth in the region long term.
In addition to the application fee and capital investment of the winning proposal, taxes will generate continual revenue. This includes 10% on gross gaming revenue and a minimum of 25% on revenue from slot gaming.
While Yonkers’ Empire City Casino faces competition from other downstate businesses, they also face a $1 million application fee and $500 million capital investment following an approved proposal. As part of the application, businesses much demonstrate that their project would have a positive economic impact on neighboring communities.
A Staged Approach
The final decision for the award comes from the New York State Gaming Commission. This decision also comes with oversight by the New York Gaming Facility Location Board. As part of the application process, a Community Advisory Committee (CAC) for each applicant will be established. The CAC reviews the merits, viability, and impacts of a full casino license in the community. CACs in Westchester and Long Island have five members, including representatives of the governor, mayor, and local state senator. New York City has six member in their CAC, with the addition of the Borough President.
The first stage of the process is open for applicants to ask questions, receive clarification, and submit their proposals. The stage is also when each local CAC meets to review the application and then decide whether it is suitable to move to the next stage. This stage also involves approval by local zoning authorities.
Stage two presents the approved proposals to the Gaming Facility Location Board, who will seek a formal decision from the State Gaming Commission on the three successful proposals.
Stage one is expected to conclude by the end of the year. Decisions on final awards could be announced potentially by 2024.
