The New York State Gaming Facility Location Board has extended the deadline for downstate casino bids to June 27, 2025. This decision comes even as a bill proposing an earlier deadline of August 31, 2024, awaits Governor Kathy Hochul’s signature.

New Timeline for Downstate Casino Bids

On June 27, 2024, the Gaming Facility Location Board unanimously approved the new timeline. The revised schedule requires all applications to be submitted by June 27, 2025. Following this, Community Advisory Committees (CACs) will form to begin their statutory evaluations. CACs must vote on their respective projects by September 30, 2025, after which approved applicants will submit additional materials, including proposed tax rates, for further evaluation.

The board plans to make its decisions by December 1, 2025, with the New York State Gaming Commission issuing licenses by December 31, 2025. This extended timeline is designed to ensure that all legal and procedural requirements are met, giving communities ample opportunity to voice their opinions and allowing applicants to finalize necessary zoning and environmental approvals.

Conflict with Pending Legislation

Senator Joe Addabbo’s bill (S9673A), passed through the House and Senate in early June 2024, proposes an August 31, 2024 deadline for bid submissions. However, board members expressed concerns that this deadline is unrealistic. Board chair Vicki Been stated, “The hope would be that our reasoning will be helpful to the governor,” indicating the board’s belief that a rushed deadline would not be practical given the complexity of the bidding process.

Bidders must complete zoning changes and environmental impact studies before their proposals can be reviewed. Currently, sites like Bally’s Bronx proposal and Steve Cohen’s Queens proposal require rezoning, as they are designated as parkland. Both developers are lobbying local and state boards for these changes, but the approvals are not yet in place.

Interested Bidders and Proposals

There are 11 bidders interested in the three available casino licenses for downstate New York. The proposals and their respective developers and operators include:

• Avenir: Silverstein Properties (Developer), Greenwood Gaming (Casino Operator) – Manhattan
• Bally’s Links at Ferry Point: Bally’s Corporation (Developer and Casino Operator) – The Bronx
• Caesars Palace Times Square: Caesars Entertainment, SL Green, Roc Nation (Developers), Caesars Entertainment (Casino Operator) – Manhattan
• The Coney: Thor Equities, Legends Entertainment, the Chickasaw Nation, Saratoga Casino Holdings (Developers), Saratoga Casino Holdings (Casino Operator) – Brooklyn
• Freedom Plaza: Soloviev Group (Developer), Mohegan Gaming (Casino Operator) – Manhattan
• Metropolitan Park: Steven Cohen (Developer), Hard Rock International (Casino Operator) – Queens
• MGM Empire City: MGM Resorts International (Developer and Casino Operator) – Yonkers
• Resorts World New York City: Genting Group (Developer and Casino Operator) – Queens
• Sands New York: Las Vegas Sands (Developer and Casino Operator) – Long Island, Nassau County
• Saks Fifth Avenue: Hudson’s Bay Company (Developer), TBD (Casino Operator) – Manhattan
• Wynn New York City: Related Companies, Oxford Properties Group (Developers), Wynn Resorts (Casino Operator) – Manhattan

Community and Regulatory Considerations

In addition to securing community support through CACs, applicants must navigate the State Environmental Quality Review Act (SEQR) process. This extensive review is essential to identify and mitigate any adverse environmental effects of the proposed projects. The City of New York has updated its zoning code to permit licensed commercial casino gambling, but some potential applicants still face additional zoning hurdles.

The board’s decision to extend the bid deadline aims to provide a fair and thorough evaluation process, ensuring that all proposals meet the required standards and that the community’s voice is heard.

Source:

The New York State Gaming Facility Location Board (PDF), June 27, 2024. 

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In April, the New York State Gaming Commission revealed a robust sports betting handle of nearly $1.97 billion, narrowly missing the $2 billion mark, marking the fourth time in history it came close to this milestone. The impressive figures were partly fueled by revenue collected in the final week of March, which was absorbed into April’s financial records due to the state’s fiscal year starting on April 1st. Consequently, there was a notable 6.2% month-over-month increase in handle from March, a rarity in the industry, accompanied by a 20.6% surge in sports betting revenue, reaching $184 million.

This handle places New York fourth all-time nationally in the post-PASPA era, reaffirming the state’s monopoly on top-10 all-time totals. Similarly, the revenue total ranks fourth overall, with the Empire State claiming eight of the top-10 monthly operator winnings, leaving states like New Jersey and Ohio trailing with just one apiece.

Steady Growth and Revenue Surge

Comparing April 2024 to the same period in 2023, there was a notable 27.1% increase in handle and a 32.1% surge in revenue, showcasing a steady growth trajectory in New York’s sports betting landscape. The total accepted bets through the first four months of 2024 reached $7.57 billion, marking a 14.4% increase from the previous year. Moreover, the near-9% win rate generated $679.6 million in revenue, a substantial 21.1% increase.

The state collected $93.8 million in taxes, with the bulk of it sourced from New York’s nine mobile operators, demonstrating the significant economic contribution of the sports betting industry. Year-to-date, the state’s tax receipts stand at $345.1 million, surpassing last year’s pace by $59.6 million and on track to exceed $1 billion, doubling the initial projections set by former Governor Andrew Cuomo.

FanDuel’s Remarkable Performance

FanDuel showcased an impressive recovery with an 11.7% hold, avoiding its third consecutive month with a sub-10% hold. This achievement is noteworthy, especially considering the challenges faced in the early months of mobile betting in New York. With a win rate of 11.7%, FanDuel amassed $91 million in revenue from $780.5 million worth of wagers, surpassing $1.8 billion in total revenue in the Empire State.

Distinct Performances of Leading Operators

DraftKings witnessed a remarkable 42.7% year-over-year increase in handle, reaching $737 million, while maintaining a solid 8.6% hold, resulting in a substantial revenue of $63.2 million for April. Caesars, however, experienced a decline in market share, with its 8.1% contribution to the total mobile handle marking an all-time low. Despite this, Caesars managed to surpass $400 million in total revenue.

Fanatics Sportsbook, in its first full month as an operator in New York, reported $5.6 million in revenue, setting an all-time high, with a 7.5% hold. Similarly, BetRivers and BetMGM showcased steady performances, contributing to the diverse landscape of sports betting operators in the state.

May’s Promising Start

The first week of May saw a promising surge in sports betting activity, with a combined handle of $484.1 million among the nine mobile operators. DraftKings led the pack with its second-highest week of action, totaling $217.2 million in handle. FanDuel, accounting for more than half of the operator winnings for the week, reported $12.6 million, contributing to the overall positive momentum in New York’s sports betting industry.

Source: “New York Narrowly Misses $2 Billion In Handle for April”. Sports Handle. May 10, 2024.

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During Las Vegas Sands’ first-quarter earnings call, CEO Rob Goldstein addressed both setbacks in New York‘s licensing process and the company’s interest in Thailand‘s gaming potential, shedding light on its strategic outlook amidst evolving market dynamics.

Las Vegas Sands Faces Extended Timelines in New York

In response to delays in New York’s casino licensing, Goldstein expressed frustration, citing ongoing uncertainties surrounding the timeline for approvals. Las Vegas Sands had anticipated progress in 2024 but now faces extended timelines, with decisions pushed back to potentially 2025 or 2026. 

Patrick Dumont, Las Vegas Sands president and COO, also expressed his exasperation: “Now they are saying 2025 or 2026, but I do not think we have any real clarity. And to be honest, it is confusing and disappointing because we have done a lot of work in New York and invested a lot of time into it. So I have no guidance because I do not really know what to say with candor and insight.”

Regulatory hurdles, particularly in New York City, have impeded advancements, with zoning amendments awaiting approval to facilitate casino developments within the city’s five boroughs. 

Moreover, legal disputes, including challenges from Hofstra University regarding a planned resort near the Nassau Coliseum, have further complicated matters. Goldstein emphasized the need for clarity and resolution in New York’s regulatory landscape, reflecting the company’s long-standing commitment to the market.

Las Vegas Sands Eyes Thailand Amidst New York Setbacks

Despite challenges in New York, attention turned to Southeast Asia, with Wall Street analyst Chad Beynon from Macquarie US Equity Research probing about prospects in Thailand. Goldstein responded optimistically, acknowledging Thailand’s potential to expedite developments. 

He highlighted the market’s allure, citing its sizable population, accessibility, and status as one of Asia’s premier resort destinations. Goldstein affirmed the company’s interest in Thailand, underscoring ongoing efforts to assess opportunities and determine feasibility in the region.

The discussion on Thailand aligns with broader industry sentiments, reflecting growing interest in the Southeast Asian nation’s gaming landscape. Thailand’s recent strides in passing legislation for legal casino gaming suggest that it may launch its first casino before Japan, potentially opening doors for rapid tourism and economic growth. 

With overwhelming support from the House of Representatives and favorable tax rates, experts anticipate Thailand to become a prime destination for international casino companies, possibly outpacing Japan in the race to establish integrated resorts. 

As Las Vegas Sands navigates through regulatory challenges in New York, the company remains committed to exploring new opportunities and expanding its global footprint. Despite uncertainties in mature markets, the company’s strategic vision extends towards emerging destinations like Thailand, where it seeks to leverage its expertise and capitalize on evolving market dynamics.

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The legalization of online gambling in New York has been a hot topic for years. Sen. Joseph Addabbo, one of the supporters of iGaming, has been pushing for its legalization since 2019. Despite his previous proposals which have not gained enough traction to be passed into law, earlier this year, he filed his latest proposal for iLottery and iGaming in New York. Introducing Senate Bill 8185 earlier this month, the Senator stayed true to his word after hinting about such plans last year.

The iGaming and iLottery proposal seeks to further expand the gambling options available for New Yorkers. Since the state legalized and launched its online sports betting market, it surpassed records that have taken years to set in other jurisdictions. In fact, January was another record-breaking month for online sports betting.

Just like online sports betting, Sen. Addabbo seeks to legalize iGaming with the state reaping all the benefits that come along. The legalization of the activity will not only generate tax revenue but provide New Yorkers with platforms that are licensed to offer such services thus reducing the share of the black market.

Despite the benefits, not everyone agrees with the proposed iGaming legalization. The initiative caught the attention of the Hotel & Gaming Trades Council union with workers from Resorts World casino voicing their concerns about the potential negative impact of online gambling.

iGaming Opponents Warn the Activity May Hurt Brick-and-Mortar Casinos

According to a report by the New York Post, close to 700 brick-and-mortar casino employees opposed the iGaming proposal, citing concerns about the future of their employment. “We find it appalling that you are pushing legislation that would hurt workers like us and our industry in order to benefit a handful of companies who are seeking massive profits at our expense,” reads a letter sent by the Hotel & Gaming Trades Council union.

In their letter, the workers spoke about the proceeds from gambling at retail casinos, saying that such activities help support not only dealers but hotel workers, cooks, servers, bartenders and more related jobs. The Hotel & Gaming Trades Council union’s letter explained that if New Yorkers can gamble from their smartphones, they won’t visit a brick-and-mortar casino, adding that the money gambled “would go straight into the pockets of gaming companies, rather than to support the livelihoods of thousands of New Yorkers who support the state’s gaming industry.”

But Sen. Addabbo disagreed with the workers’ concerns. He explained that the legalization of online gambling is only a matter of time highlighting that the legal iGaming market can generate between $800 million and $1 billion in revenue annually.

Moreover, Sen. Addabbo said that based on studies, the online gambling sector would not reduce the work for the retail casino industry. Finally, he said that an estimated $25 million per year would be dedicated toward protecting jobs in the casino industry while at the same time, iGaming dealers would be a part of the state’s union.

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New York continues to break its online sports betting revenue records month after month, once again publishing unprecedented results in January. According to official data, licensed sportsbooks recorded a total sports betting GGR of $211.5 million.

This figure smashes December’s previous record, attesting to the fact that the New York betting sector is yet to unfold its full potential. For reference, sportsbooks posted revenue of $188.3 million in December 2023.

Sports betting handle, on the other hand, failed to surpass the $2 billion mark just barely as the state’s sportsbooks reported handling a total of $1.96 billion in bets. Despite the slight decrease on December, this figure still represents a significant 11.5% year-on-year increase from January 2023.

While this figure interrupts New York’s $2 billion monthly handle streak, the overall results are still very positive.

FanDuel’s Market Share Exceeded 50%

Taking a look at how The Empire State’s licensed sportsbooks performed, data shows that FanDuel maintained its lead with a handle of $867.1 million. Thanks to that, the betting giant singlehandedly scooped up $109.2 million of the total GGR. This is notably the highest figure ever reported by a single operator in the state.

American betting powerhouse DraftKings came in second, recording a total of $664.8 million bets, which translated into GGR of $71 million. Caesars Sportsbook rounded up the top three with a handle of $198 million and revenue of $13.6 million.

Caesars was followed by BetMGM, which handled $118.8 million, resulting in $10 million in revenue. Rush Street Interactive, meanwhile, recorded a sports betting handle of $50.1 million and a GGR of $3.5 million. PointsBet players, on the other hand, wagered $31.7 million, resulting in revenue of $2.6 million.

Resorts World Bet trailed PointsBet with $6.9 million in bets and $752,478 in revenue. The last two spots were occupied by Bally Bet and Wynn Interactive, which posted $425,689 and $358,497 in revenue, respectively. Bally recorded a handle of $9.4 million while Wynn Interactive handled $8.8 million.

New York Sets Sights on Expanded Gambling Industry

In the meantime, New York continues to fight for the legalization of online casino gaming as Senator Joseph Addabbo introduced a new iGaming bill in the state. Unlike previous proposals, this one would allow the state to also launch online lotteries.

The bill in question just received an amendment and was recommitted to the New York Senate Racing, Gaming and Wagering Committee.

In other New York-related news, it seems that the Downstate casino licensing will be delayed further.

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Two individuals have been apprehended by FBI agents for their alleged involvement in a violent armed robbery at an illicit gambling establishment in Flushing, Queens, last July. The incident, which resulted in one person sustaining gunshot wounds, has led to charges against Jamel Berry from Astoria and Zhong Wang, a Chinese national.

Robbery at Flushing Gambling Den Leaves Victim Injured

According to authorities, the robbery took place on the night of July 19, 2023, when Berry and his accomplices, including two individuals who are currently at large, stormed into the underground gambling den located on Avery Avenue. Prior to the robbery, Wang allegedly disabled the building’s power supply to aid in the execution of the crime, as reported by the Astoria Post.

Once inside, the perpetrators assaulted one individual with a metal pipe and brandished a firearm, coercing others to comply with their demands. The group then made off with approximately $3,000 in cash before firing a shot that struck an innocent bystander in the abdomen. The victim was rushed to New York-Presbyterian Queens Hospital for medical attention and has since survived the ordeal.

Investigators managed to retrieve surveillance footage capturing Berry, Wang, and their accomplices congregating at a nearby location before proceeding to the gambling den. The footage also captured the suspects fleeing the scene following the robbery.

Astoria Man and Chinese National Detained Pending Further Legal Proceedings

During a hearing at Brooklyn federal court, prosecutors argued that both Berry and Wang posed a significant flight risk if released. They emphasized Wang’s ties to China, pointing out the absence of an extradition treaty between the United States and China, which could complicate efforts to bring him to justice if he were to flee.

Consequently, Wang was ordered to be held in custody, while Berry was placed under home detention pending further legal proceedings. Both defendants have pleaded not guilty to the charges levelled against them, with negotiations for potential plea deals reportedly underway.

This is not the first encounter with law enforcement for Jamel Berry, as he was previously convicted in 2020 for attempted criminal possession of a weapon.

The incident sheds light on the prevalence of illegal gambling dens in neighborhoods like Flushing, which have historically been targeted by armed robbers seeking easy money. 

Despite efforts to crack down on such activities, the allure of illicit gambling continues to attract criminal elements, posing a challenge for law enforcement agencies tasked with maintaining public safety.

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The process for awarding three new downstate New York casino licenses may take significantly longer than initially expected. Previously, industry insiders and experts speculated that the bidding process for the licenses may open at some point this month. With the month passing and a range of processes left outstanding, it now looks less likely for the bidding to be launched during the first quarter of this year.

In fact, according to a new report, this lengthy process may be extended even by a year. A recently released report by Newsday, citing the opinions of industry insiders, suggests that the awarding of the downstate licenses may even happen at some point during the first quarter of 2025. This otherwise means that the process may take significantly longer than initially expected.

What’s expected now is for the Gaming Facility Location Board to release the answers to questions submitted by interested casino bidders. The first round of such questions was released back in August, while submissions for the second round, to which responses are yet to be released, started back in October. Once the Board releases the responses, a 30-day window applicable for bidders would open for casino operators.

Besides this process, casino license applicants must also clear outstanding issues related to zoning. Late last year, New York Mayor Eric Adams introduced a new proposal that sought to ease this process. This ambitious plan that sought to expedite the casino approvals faced opposition from Community Boards last month.

New Casino License Fees Missing from FY 2025 Budget

The potential delay, suggested by industry insiders, doesn’t come as a surprise, especially considering that the license fees from the three casinos did not make it into the fiscal 2024-2025 budget. The FY 2025 Budget sets a plan for the revenue through March 31, 2025.

In other words, New York may miss out on significant proceeds unless the three casino licenses are awarded. Early estimates predicted a license fee of $500 million per license or some $1.5 billion in extra proceeds for the state if the licensing is expedited.

The FY 2025 Budget, released by Gov. Kathy Hochul earlier this month, brought bad news for online casinos as well. Despite efforts toward the legalization of iGaming activities, the $233 billion budget did not include texts regarding the activity. According to lawmakers, this action may doom the legalization of the activity, at least for this year.

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January 8, 2024, marked the second year of legalized online sports betting for the market in New York. The activity broke all records for that period, with billions of wagers and significant proceeds to the state and the operators who hold a license. While sports betting surpassed even the brightest predictions, online gambling may not see the light of day, at least this year.

On Tuesday, Gov. Kathy Hochul announced the state’s FY 2025 Budget. Surprisingly, the $233 billion budget did not mention online gambling, a move that may doom the legalization of the activity this year. Upon releasing the budget, the Governor explained: “This budget makes it clear that fiscal discipline can co-exist with progressive, people-driven policies.”

Moreover, Hochul said: “I am committed to fight the right fights on behalf of New Yorkers, and to pursue the common good with common sense – by seeking common ground.” Interestingly enough, iGaming didn’t get much traction during 2023 and it wasn’t included in the 2024 state budget as well.

Now, despite the predictions that the state can benefit from tax revenue by legalizing online gambling, the activity isn’t included in the recently released budget. Still, this doesn’t guarantee that iGaming won’t be up for debate or lawmakers won’t consider it.

Proposal Calls for the Legalization of iLottery, iGaming

The FY 2025 Budget was announced days after Sen. Joseph Addabbo, a supporter of the legalization of iGaming activities, officially filed an online gambling and lottery bill in New York. Continuing his efforts toward legalizing iGaming, the Senator introduced Senate Bill 8185. The proposal called for the legalization of online lottery and iGaming activities across the state.

Senate Bill 8185 follows another proposal introduced by Sen. Addabbo last year, S4856. Yet, a significant difference between the two bills is that the new one includes online lotteries. While S4856 never really lifted off, Senate Bill 8185 reaffirms the Senator’s dedication toward the legalization of the activity.

The proposal calls for the implementation of a 30.5% tax on gross gaming revenue, applicable to online gambling operators. This high tax rate reminds of online sports wagering in the state, which is subject to a 51% tax.

Not unexpectedly, under the new proposal, players need to be age 21 or older to engage in online gambling activities. To secure a license in the state, independent contractors would be subject to a $10 million one-time licensee fee. On the other hand, existing operators would pay a one-time $2 million fee to secure a license.

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True to his word, Senator Joseph Addabbo introduced a new iGaming bill in New York. The measure, dubbed Senate Bill 8185 was referred to the Racing, Gaming and Wagering Committee yesterday and seeks to authorize interactive gaming and interactive lottery gaming in The Empire State.

Addabbo, who’s a staunch supporter of the launch of online casino gaming in the state, also tried to get the vertical legalized in 2023. His previous bill, S4856, also sought to get digital gambling legalized. However, a major difference is that the previous bill did not include online lottery.

In any case, S4856 failed to gain traction and never yielded results. However, this did not stop Addabbo from promoting the launch of online gambling in New York.

Under S8185, New York’s seven land-based casinos, racetracks and tribes will be eligible to apply for online gambling licenses. The potential bidding process will also handle three additional licenses to parties that submit a program that gets the commission’s approval.

As mentioned, the main difference from last year’s bill is that S8185 also includes the legalization of online lottery. Per the proposal, New York would allow players to access joint, multi-jurisdiction and out-of-state lotteries online. Ticket sales would be overseen by the New York State Division of Lottery.

Addabbo Says New York Would Benefit from the Legalization

Applicants will have to pay a one-time license fee to secure their license. Existing operators, for example, will be required to pay $2 million for a license. Independent contractors, however, will need to pay $10 million.

In addition, potential applicants should prepare to face significant taxes as S8185 envisions a 30.5% gross gaming revenue tax. Mirroring New York betting’s controversial (and according to some operators unsustainable) tax, Addabbo plans to set high taxation rates for operators. As per the bill, $11 million of this money will be distributed by the Commission and the Office of Addiction Services and Supports for problem gambling-related services.

Under the current version of the bill, only players above the age of 21 will be allowed to play online.

A few days ago, the Senator commented on the matter, saying that the legislation would greatly benefit New York, significantly alleviating its rising financial pressures. He said:

Other states are doing it and taking our money. And if I hear my analysts in the industry correctly, we lose about a billion dollars a year. How long can we sit on the sidelines?

Senator Addabbo

New York is currently America’s largest betting market, constantly posting record-breaking figures. Addabbo and other online gambling supporters hope to replicate this success and generate more tax revenue for the state.

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As the race for New York City casino permits intensifies, potential operators find themselves facing a high-stakes gamble not only for the coveted licenses but also in terms of financial risk. A recent report from financial analysts at S&P Global Ratings suggests that successful bidders may find themselves shouldering substantial debt burdens.

Major Players Vie for Lucrative Downstate Casino Licenses in the Battle for the Big Apple

The New York state government is set to award three downstate casino licenses, opening the doors to what is considered one of the last untapped gaming frontiers in the United States. The competition is fierce, with major players like MGM Resorts International, Las Vegas Sands, and Wynn Resorts vying for the lucrative opportunity.

S&P Global Ratings, in a comprehensive new report, outlined the potential financial implications for the winning operators. The proposed projects range from $2 billion for expansions or redevelopments of existing properties to over $5 billion for entirely new developments. The report indicates that the impact of the associated leverage could materialize within the next 12-18 months.

One of the key concerns raised by the analysts is the strain on corporate credit metrics as companies seek to secure a foothold in the highly competitive New York market. MGM Resorts International‘s Empire City Casino in Yonkers and Resorts World New York in Queens are rumored to be strong contenders, although nothing is confirmed at this stage.

Rumors Swirl, Anticipating Record-Breaking $1 Billion License Fees

New York is not holding back in capitalizing on its sought-after status, with recent rumors suggesting that winning bidders could be slapped with licensing fees as high as $1 billion each. This figure far exceeds the initially anticipated cost of $500 million per permit. When factoring in construction costs, operators like Las Vegas Sands and Hard Rock International may be looking at a staggering total investment of up to $6 billion and $8 billion, respectively.

Despite the potential financial challenges, experts believe that New York could offer a short-term pain, long-term gain scenario for victorious operators. The prospect of dominating the New York market is seen as a strategic move that could pay off handsomely in the long run. However, the timeline for these developments is extended, with S&P suggesting that licenses may not be awarded before the second half of 2024. Significant capital spending is not expected until 2025, given the complexities of building in New York and the ambitious scale of the proposed projects.

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