While there are many considerations regarding New York’s awarding of as many as three licenses to operate brick-and-mortar commercial casinos in its southern part, New York State Gaming Commission (NYSGC) Executive Director Robert Williams indicated that which parties receive those licenses will ultimately come down to the math. That math involves New York maximizing its financial benefit from the operations of those casinos.
There is an arduous task ahead of the Commission in terms of licensing the qualified parties and the various committees tasked with that qualification. By the end of 2025, New Yorkers should have an understanding of the numbers.
Williams discusses licensing process for downstate casinos
In an interview with Arun Venugopal of Gothamist, Williams laid out his view of what will be the most scrutinized task that the NYSGC will take on in 2025. That is taking part in deciding which of 11 current parties interested in licenses to run casinos in the downstate part of New York will get those opportunities.
The law allows the NYSGC to grant up to three such licenses but the NYSGC is only responsible for deciding whether applicants are qualified for licensure. Separate bodies will have more influence over where the casinos will land.
Williams laid out the current timeline for the process, expressing confidence that it will resolve before the calendar turns to 2026. He elaborated on what will compose a winning bid, too.
Williams highlights the important factors
According to Venugopal, “Williams said the projects will be graded on qualitative characteristics, including architecture and design.” Venugopal quoted Williams as saying that hopeful casino operators’ relationships with “local communities, with unions, how the different projects integrate into something as simple as traffic and sewer and water, and fire and police protection” will all compose those considerations.
However, Venugopal notes that Williams added that “the most important factors for any bid are quantitative and relate to economic development.” Among the components of that aspect of the evaluation are “the capital investment, the revenue generated for the state and locality and the number of ‘quality’ jobs it offers.”
There are already some known quantities when it comes to the equation that will lead to these selections. The rest is what the bidders themselves will determine.
Parts of the equation that already exist
New York law sets the minimum for the licensing fee for these opportunities at $500 million. Bidders can commit to greater sums, though, as part of the competition.
A more long-term commitment is the tax rate that bidders will commit to should they be selected. The higher that revenue share commitment, the better the chance that a bid will be successful.
As Williams noted, however, the other parts of the equation are how much the various interested parties are willing to spend to build and maintain the facilities along with investment in employment in the casinos. All those details will be part of bids that applicants need to submit by June 27, 2025.
If things move smoothly in line with Williams’ expectations, the details of all the economic projections should be public in the latter half of 2025. From there, the math will probably win out if Williams’ comments ring true.
