On Dec. 1, the NYS Gaming Facility Location Board voted to recommend casinos for locations in Metropolitan Park at Willets Point, Queens, Resorts World New York City at the Aqueduct Racetrack in Queens and Bally’s Bronx in Throggs Neck. The five-member board will provide its recommendations to the state Gaming Commission, which is expected to approve the plans before Dec. 31.
“The Gaming Facility Location Board has performed a true public service. These five individuals volunteered hundreds of hours to review and digest thousands of pages of complex application material and ultimately made the best selections for the State of New York. We are all thankful for their dedication and service for what has been up until now a thankless task. We entered this process with a tabula rasa, and are concluding with three impressive projects that will transform communities, establish career opportunities for residents, and drive much-needed revenue to the MTA, public schools and the City.
“The Gaming Commission has already undertaken the background investigations of the applicants and is expeditiously applying its statutory license suitability criteria to ensure that these casinos are operated with utmost integrity and fiscal responsibility. A New York gaming license is a privilege – and this Commission will ensure those entities fortunate enough to be selected for licensure meet New York’s rigorous standards.”
Governor Kathy Hochul said, “From the moment that three downstate casino licenses were authorized in the 2022 State Budget, I have been clear: any approved project must provide real benefits to its community and have sustainable economic plans. I am grateful to Chair Been and the Gaming Facility Location Board for their careful review of the applications according to these high standards.
“The three projects approved today promise to unlock billions in funding for the MTA and create tens of thousands of jobs. It is critical that they keep those promises. I look forward to the Gaming Commission’s review of the Board’s recommendations in the weeks ahead.”
The City of Yonkers had initially hoped for the MGM casino at Yonkers Raceway to win approval of one of the three licenses. But in a decision that has never been completely explained, MGM bailed out at the last minute and withdrew its application.
After MGM’s move, the hope for vast majority of Yonkers residents and stakeholders who wanted a Gaming Casino at Yonkers raceway was for the Gaming Commission to award only two licenses, so that the City could find another applicant to apply for a license.
That hope ended on Dec. 1. Yonkers Mayor Mike Spano said, “I am deeply disappointed in New York’s decision to move forward with the award of three casino licenses all within New York City. But the decision has been made, and now my focus is singular: protecting our city’s number one taxpayer and largest employer. I am asking the Governor and the state to recognize the new realities before us and work collaboratively with Yonkers and MGM on a meaningful plan to strengthen this facility. We need to expand its potential, transforming it into a true entertainment destination. Failure is not an option for our residents, our workforce, our city’s future.”
The most likely explanation as to why MGM bailed out was when the NYS Gaming Commission released rules about how long each casino license will last. These rules came very late in the game, and required that all licenses will last at least 10 years, but bigger projects are entitled to longer licenses — 15 years if the project’s investment is between $1.5 billion and $5 billion, 20 years if between $5 billion and $10 billion, and 30 years if greater than $10 billion.
A 15 year term was determined by MGM to not be economically feasible. But Bally’s investment is also under $5 billion so they should also only be entitled to 15 years. Bally’s also has to pay the Trump Corporation $115 Million for the land in which they will build their Bronx location, next to a Trump golf course.
The gaming casino at Yonkers Raceway was estimated to create thousands of construction jobs and 2,000 permanent new jobs, and jobs for working-class residents of Yonkers.
Recently, many NYC residents expressed opposition to the Queens casino expansions.
Many Casino insiders thought that “only one license will be issued to Citifield. Resorts World bid so high on their tax rates that they’re rumored to be trying to get out of this licensing round and hope for a 2nd shot. There’s a lot of grumbling about their financial stability & the fact that they’re leaving Sullivan County high and dry while investing billions downstate. They’ve spent more money on ads for their NYC casino than the revenue share Sullivan County gets from their Catskills casino. Upstate feels like Resorts World has given them the middle finger.
“Yes, I think the state process was flawed. Too much uncertainty, that’s why companies like Wynn, Las Vegas Sands, and MGM stepped out. I’m surprised they awarded three licenses, but also interested to see if the commission agrees and awards all three.”
The two logical locations for a gaming licenses are the two racetracks that currently have VLT’s, video lottery terminals; Yonkers Racway and Belmont Race Track. Belmont got a license, while Yonkers got screwed.
Why is a gaming license so important for Casinos? One Yonkers resident posted, “I moved to Yonkers in or around 2013. I’ve only been to Empire city casino twice- why? No table/live card games.”
Yonkers City Council Majority Leader John Rubbo issued a sharp statement condemning the New York State Gaming Commission for killing a multi-billion-dollar project in Yonkers and advancing policies that undermine Westchester County and the thousands of union workers who stood to benefit from a full-scale casino license at MGM Empire City.
Rubbo pointed to New York State’s own labor data, showing New York City has grown private sector jobs by 3.4 percent since before the pandemic, while the suburbs and upstate have seen a net decline of 0.2 percent.
“At the exact moment when the suburbs are falling behind in job creation, the Gaming Commission is making decisions that push investment away from communities like Yonkers,” Rubbo said.
The Majority Leader noted that all three downstate licenses announced today went exclusively to New York City, leaving Yonkers and Westchester behind despite being the third largest city and one of the most diverse, growing regions in the state.
Rubbo called for modernization of MGM Empire City’s nearly twenty-year-old tax structure to be in parity to the newly approved downstate casinos.
“MGM has contributed billions to New York’s education system over eighteen years,” Rubbo said. “Yet they are still forced to operate under an outdated tax model harsher than what the new casinos will pay. That punishes an early partner instead of supporting them.”
Rubbo pledged to work with Mayor Spano and state leaders to secure a fair revenue structure that increases the local share for Yonkers and Westchester County to support education, public safety, transportation, and infrastructure.
“If New York wants growth in the suburbs, then treat suburban communities fairly,” Rubbo said. “Honor the eighteen years of contributions MGM has already made. Provide a predictable path for the next generation of investment. Yonkers deserves certainty. Westchester deserves respect. And we can prove this is still a place where major employers can invest for the long term.”
Editor’s Note: Another thought on what a bad decision this was for New York State. The longer you wait for the gaming casino’s to be built, the more likely it is that bettors will be more accustomed to betting online and by phone. Yonkers Casino was the most “shovel ready” location to open a gaming casino. The bones of a casino are already in place here in Yonkers.
We have yet to read or receive a comment on this decision from State Senate Majority Leader Andrea Stewart-Cousins, since her support of the Yonkers Raceway Casino license application in September.
