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The stakes have officially been set for anyone hoping to open a casino in downstate New York. On Monday, the New York State Gaming Commission’s Gaming Facility Location Board signed off on two major financial requirements for prospective licence holders, a $500 million licence fee and a $500 million minimum capital investment. That $1 billion threshold is now the baseline for entry. The deadline for bids is 27 June, with final licence awards expected by the end of the year.
Before any hopefuls can submit their final bids, they’ll need to clear several regulatory and bureaucratic hurdles. This includes zoning approvals and environmental reviews, both of which must be wrapped up by 30 September. Progress varies across the board. Bally’s recently secured key rezoning approvals for its Bronx site, while the Coney Island project led by Thor Equities still awaits a crucial de-mapping vote. All three Manhattan bids are currently undergoing environmental scrutiny.
One of the more unique aspects of this process is the required involvement of Community Advisory Committees (CACs). Every licence bid will be reviewed by a CAC, which is tasked with measuring local support and ultimately deciding whether a proposal moves forward. A two-thirds majority vote from the CAC is mandatory for any bid to proceed.
The composition of these committees depends on location. Bids within New York City will see input from the governor, mayor, local legislators, and borough officials. Outside the city, like the MGM Empire City proposal in Yonkers, the CAC will include the governor, county officials, and local government leaders.
Review and Negotiation
Once CAC approvals are in hand, bidders will need to pay a $1 million application fee and formally submit their materials to the Facility Location Board. That board will then conduct a broader evaluation, with a scoring system that heavily favours economic development (70% of the total score). Other key factors include local impact, workforce development, and diversity planning.
Importantly, applicants are allowed to propose their own tax rates, though the minimum is 25% for slot revenue and 10% for all other gambling activities. This leaves room for competitive tax bids, and given New York’s history with a 51% tax rate on online sports betting, many expect successful casino bidders will be asked to go higher than the minimum.
Setting a $1 billion financial bar may sound steep, but most contenders were already preparing to invest more than that. The bigger concern lies in timing. For any operator starting from scratch, not already running a racino, the $500 million licence fee is a massive upfront cost, particularly when paired with a construction timeline that could stretch for years.
That’s why many observers believe two of the three licences are likely to go to existing racinos, such as MGM’s Empire City in Yonkers and Resorts World in Queens. They’re already operational and could deliver immediate tax revenue to the state, something lawmakers like Yonkers Mayor Mike Spano have publicly supported.
Competition and Future-Proofing
New York’s open-ended tax framework is clearly a lever for the state to push for favourable terms. But it also introduces risk for bidders trying to stay competitive, not only with each other but with nearby markets like Atlantic City and existing upstate casinos.
Adding to the uncertainty is the looming question of online casinos. Though iGaming isn’t currently legal in New York, there’s increasing pressure to legalise it in the future. In nearby New Jersey, for instance, online gambling revenue is booming, while physical casino earnings have plateaued or dipped. This trend has reportedly contributed to the decision by major players like Wynn Resorts and Las Vegas Sands to bow out of the bidding process altogether.
The race is now on for bidders to finalise their proposals, rally community support, and present a tax structure that will appeal to both regulators and their bottom lines. All signs point to a high-stakes battle, not just between the applicants, but between short-term revenue and long-term sustainability.
The board is expected to make its final selections by 1 December. Although three licences are up for grabs, the state has left the door open to issuing fewer, or even none, if the bids don’t meet expectations.
For now, New York has drawn a clear line in the sand, serious money, serious planning, and serious local support are the minimum price of admission.
