New York Regulators Create Timeframe for Downstate Casinos Licensing Process

Lawmakers in New York are moving forward with plans to establish a legal retail casino market in the downstate regions, including New York City and its surrounding areas. This move is likely to attract top sports betting sites and online casinos looking to participate in the market.

The New York Gaming Facility Location Board convened on Thursday and set a deadline of June 27, 2025, for receiving applications for highly sought-after gambling licenses in the area.

Senator Joseph Addabbo’s Senate Bill 9673A, a proponent of legal gambling, was passed by both the state House and Senate earlier this month. The original deadline for bids was set at Aug. 31, 2024, but after some deliberation, the Board opted for a more extensive timeline to ensure that the anticipated multibillion-dollar bids could be thoroughly developed and evaluated.

Originally…

In 2013, New York residents voted to legalize brick and mortar casinos through an amendment to the state constitution. The amendment allowed for the opening of four upstate and three downstate casinos. To give the upstate properties a chance to establish themselves, the launch of downstate gambling facilities was delayed for 10 years under the rules at that time.

It has been a decade and there is still no retail gambling establishment in or near New York City.

The application deadline of Aug. 31, 2024 may have expedited the process, but many feel that more time was necessary under Sen. Addabbo’s plan. According to board member Stuart Rabinowitz, an early deadline could create undue pressure on some applicants and lead to unfair advantages for certain individuals.

Chair Vicki Bee echoed his thoughts, stating that the timeline includes all legal requirements for potential bidders to meet before their applications can be evaluated. She added that the timeline allows for communities to voice their opinions, creates a fair competition among bidders, and allows serious applicants to participate in a profitable and transformative process.

Now…

In late June 2025, all applicants vying for a sought-after downstate casino license must submit their applications. Each applicant will then be assigned a “Community Advisory Committee,” consisting of six members: Governor Kathy Hochul, New York City Mayor Eric Adams, the borough president where the casino plans to operate, a relevant state senator, assemblyperson, and city councilor representing the affected area.

All applicants must meet the requirements set by the Community Advisory Committee by September 30, 2025. The panel will then review the applicant and make a decision on their potential licensing by December 1, 2025.

Land use permits and zoning requirements must be met, in addition to completing all entitlement processes.

If an applicant successfully completes the vetting process, they must pay a $500 million licensing fee to proceed with launching downstate.

Therefore, the delay in processing applications in the state.

Who is in on downstate New York?

A fierce competition is expected for the three downstate commercial casino licenses in New York, with 11 operators vying for a spot in coveted locations such as Times Square, Manhattan, or Long Island.

Rumors suggest that Bally’s, Caesars, MGM Resorts, Hard Rock, Las Vegas Sands, and Mohegan, among other well-established companies, are potentially interested in joining New York City’s legal retail gambling market. With their wealth of experience and resources, these companies have the capability to meet all the necessary criteria and potentially play a key role in transforming the city’s gambling scene.