4.8.22 - At least $500M license fee, community board support needed for NYC-area casinos
'ALBANY, N.Y. — Companies eager to open a New York City-area casino would need to pay at least $500 million for a license and win majority support of a local board if they want to open in the nation's largest untapped market.
The state budget set for approval Friday includes the stipulations as casino giants gear up to submit proposals to the state Gaming Commission in the coming months to win one of the three gambling licenses the state will allocate.
"What this does is it allows the community to be involved through their elected leaders and also stops people from spending a lot of time and energy on something that may not have the local support," Gov. Kathy Hochul said Thursday. "But we believe that there is a strong interest and objective in creating thousands of jobs and having opportunities for downstate casinos."
Lawmakers and Hochul negotiated for weeks on a deal that would expedite the issuing of three downstate New York casino licenses. The previous law in 2014 banned any new casinos in the state until 2023 to allow four upstate ones to have a five-year headstart.
But with the state eager for the added revenue and jobs amid the Covid-19 pandemic, the sides agreed to allow the Gaming Commission to set up a siting process this year for the new casinos. The state Legislature was expected to approve the measure late Friday.
The license fees would be at least above $500 million for the casino bid winners, but could be more based on the agreement, lawmakers said.
One of the key sticking points was ensuring any casino would have local support. So the budget language creates boards that would have to approve any casino project before it is granted a license by the state.
For New York City, it would be a six-member board that would require four of six votes from: one appointee each from the mayor and governor; the city council member from that area; the borough president; and the local senator and assemblymember.
Outside the city, including Long Island and Westchester County, it would be a five-member board that would need majority approval: a governor appointee; the local senator and assemblymember; the county executive; and either a town supervisor or village mayor.
The so-callled community advisory committee "works," said Senate Racing, Gaming and Wagering Chair Joseph Addabbo (D-Queens). "It would have those proposing to operate a casino understand that they are going to need to be a partner."
Empire City Casino in Yonkers and Resorts World New York City in Queens are eager to win two of the three licenses since they already have racetracks with video-lottery terminals. If they were awarded licenses, that would leave one left — likely a battle for the final license somewhere in the city.
"Resorts World could not be more excited for the nearing of an opportunity to participate in a competitive process for a full casino license in New York City," Bob DeSalvio, president of Genting Americas East, which owns Resorts World, said in a statement.
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