New York Casino License, Capital Investment Minimums Set At $500 Million

The New York State Gaming Commission’s (NYSGC) Gaming Facility Committee on Monday established the minimum price for each of the three downstate casino licenses to be made available at $500 million.

The members of the committee also established a minimum of $500 million in capital investments for potential licensees ahead of the June 27 deadline for applications to be submitted to the NYSGC. There are expected to be eight bids submitted for the coveted licenses, with three likely to be Manhattan-based proposals.

The meeting itself lasted less than 10 minutes as the committee noted the rules establishing the minimums were published in the state’s register last July 31. There were no public comments for either rule in the 60-day period that ended Sept. 30, 2024.

Both votes were unanimous in setting the fees, and since that was the only rulemaking item on the agenda, the meeting adjourned shortly thereafter.

Does Bally’s have momentum for a late run?

Bally’s $4 billion proposal for a casino in the Bronx became the second to gain approval for rezoning land at the state level. Sen. Nathalia Fernandez and Rep. Michael Benedetto sponsored bills that made a late run through the Senate and Assembly in Albany.

Currently, the Bally’s proposal and the $8 billion Metropolitan Park proposal for a Queens-based gambling venue fronted by Hard Rock and New York Mets owner Steve Cohen are the only ones that have attained rezoning amendments at the city and state levels.

New York City Mayor Eric Adams helped the Bally’s proposal reach the state level last week by publicly declaring his support. That reduced the majority needed to pass rezoning in the City Council from two-thirds to a simple majority.

SL Green bullish on Times Square hopes

SL Green, which is part of the group with Roc Nation and Caesars, expected to submit a proposal to have a casino in Times Square, feels its chances of landing one of the licenses improved with the withdrawal of the Hudson Yards proposal by Wynn.

Crain’s New York is reporting that Chief Financial Officer Matt DiLiberto said SL Green’s chances are “dramatically better and pretty good” while speaking to an audience of institutional investors last week.

The Times Square casino proposal has been one of the more polarizing ones in terms of support and opposition. One Times Square, Two Times Square, and SoHo Properties are among property groups backing the bid, while the Broadway League is the most high-profile opponent among the 30 belonging to the No Times Square Casino coalition.

The withdrawal of the Hudson Yards proposal leaves the Roc Nation/Caesars proposal along with The Avenir and Freedom Plaza as the Manhattan-based bids expected to be submitted.

Over in Coney Island, residents last week expressed their support and opposition to the Thor Equities-fronted proposal at a Zoning and Franchising Subcommittee hearing.

The Brooklyn Daily Eagle reported the hearing centered on the demapping proposal, but no vote was taken on the subject. The Coney Island proposal, considered a longshot to land one of the licenses, offers a venue spanning 1.3 million square feet with projections of 4,500 construction jobs and 4,000 permanent casino jobs.