Gov. Hochul Vetoes Bill To Expedite NYC Casino Proposals Amid Intense Debate

New York Gov. Kathy Hochul has vetoed a bill that sought to accelerate the timeline for submitting bids to develop a casino in or near New York City. The legislation, passed by state lawmakers in June, proposed a requirement for bidders to submit their proposals by August 2024, even if they had not secured local zoning or other approvals.

The governor’s veto message made it clear that she opposes altering the agreed-upon selection timeline established during the 2022 state budget negotiations. She argued that an expedited deadline could unfairly favor some bidders over others. Hochul stated that she could not support a bill that changes the rules in the middle of a competitive and carefully designed process.

The current process, overseen by the New York State Gaming Commission, will most likely result in the issuance of three casino licenses by the end of 2025. Potential bidders are required to collaborate with local governments to ensure their projects comply with zoning laws and other municipal requirements.

Some industry insiders have suggested that the longer timetable works to the advantage of bidders facing local political opposition or ongoing zoning and land-use challenges. Proposals such as Mets owner Steve Cohen’s $8 billion Metropolitan Park project near Citi Field in Queens and the Wynn/Related Companies’ $12 billion gaming complex at Hudson Yards could benefit from the additional time to address these issues.

Gov. Hochul’s decision to veto the bill also drew criticism from state Sen. Joe Addabbo, who noted the governor’s willingness to adjust timelines on other contentious issues, such as the recently revised congestion pricing plan for entering Midtown Manhattan. Addabbo argued that his goal was to improve the casino selection process, not undermine it.

High stakes for New York’s economy

On the other hand, proponents of the expedited timeline, including Sen. Addabbo and Assemblyman Gary Pretlow, argued that delaying the submission of bids could unnecessarily prolong the process. They feel that it could also leave projects with significant legal or zoning hurdles unresolved.

Sen. Addabbo, chairman of the Senate Committee on Racing, Gaming, and Wagering, emphasized that projects unable to address land-use issues within two years may not be suitable for casino development.

The financial stakes for the state are substantial. Each awarded casino license is expected to generate a minimum of $500 million in revenue for New York, with estimates suggesting that figure could climb to $750 million per license, potentially yielding $2.25 billion in total. The proceeds are expected to support the Metropolitan Transportation Authority, which has faced ongoing financial challenges.

Cohen’s casino gets a boost

Despite the veto, developers vying for a casino license are not slowing their efforts. Cohen’s Metropolitan Park proposal recently cleared a significant hurdle, securing the approval of all five Queens borough community boards tasked with reviewing the project.

The plan aims to transform 50 acres of Citi Field parking lots into a casino and entertainment complex. Alongside this would be a hotel, green spaces, and a string of amenities.

While the community board approvals mark a positive step for the Metropolitan Park project, significant obstacles remain. The plan still requires endorsements from Queens Borough President Donovan Richards, the New York City Planning Commission, and the City Council. Additionally, a local community advisory committee in Queens must weigh in on the proposal next year.