New York Casino Licensing Bill Stalls as Deadline Nears, Leaving 2025 Timeline Intact

A bill approved by New York state legislators that sought to expedite the bidding process for downstate casino licenses appears to be effectively dead. It’s looking more likely that 2026 will be the earliest New York would see new casinos appear.

The legislation, which had proposed moving the deadline for bids to August 31, has not been acted upon by Gov. Kathy Hochul. This is leading to a situation where the original timeline set by the state’s Gaming Facility Location Board (GFLB) remains in place.

The bill, championed by Sen. Joe Addabbo and Assemblyman Gary Pretlow, both long-time proponents of gambling expansion, aimed to fast-track the process of awarding three casino licenses in the New York City area. The legislation was seen as a critical move to jumpstart economic development and generate significant tax revenue.

According to Newsday, Bennet Liebman, a government law professor and former member of the New York State Racing and Wagering Board, noted that the governor’s silence and lack of action on the bill indicate a clear intention to adhere to the 2025 timeline. That’s just for the approvals, which means the launch of any new casino wouldn’t be possible until 2026 at the earliest.

“It’s obvious — it’s the middle of August! Sorry, but you’re not going to say to these casino developers: ‘You have two weeks to put in your application for a $10 billion casino.’ That’s just not going to happen.”

– Government law professor and former NY Racing and Wagering Commission member Bennet Liebman

Michael Hershman, CEO of the Soloviev Group, a developer planning to bid for a casino on Manhattan’s East Side, echoed the sentiment that the expedited timeline is no longer feasible. “Practically speaking, the bill is moot,” he said. “The governor hasn’t spoken out for or against the bill. But her lack of action speaks volumes.”

Playing the waiting game

Despite the urgency expressed by its sponsors and supporters, the bill has not advanced beyond the state legislature. Gov. Hochul’s administration has not requested the legislature to forward the bill for her consideration, a procedural step necessary before the governor can either sign or veto the bill.

While Gov. Hochul has not publicly indicated her intention to veto the bill, her inaction suggests a preference for the existing timeline established by the state’s GFLB. This board, which is responsible for overseeing the siting process for new casinos, has set a schedule that calls for bids to be submitted by June 2025, with final decisions expected by the end of that year. This timeline is at odds with the expedited schedule proposed in the legislation.

The 2025 timeline set by the GFLB came after careful consideration of various factors, including ongoing zoning issues in New York City, which have posed significant challenges for potential casino developers. The New York State Gaming Commission had previously expressed reluctance to set a firm deadline for bids, citing these unresolved zoning concerns, among other issues.

The legislative push for an accelerated bidding process was driven by the potential economic benefits of bringing new casinos to the New York City area sooner rather than later. Proponents of the bill argued that the expedited timeline would boost job creation, tourism, and state revenue.

However, the complexities of the process, particularly the need to resolve zoning issues and secure local approvals, have made the 2025 timeline more practical in the eyes of state regulators and the Hochul administration.