New York State previously announced its plans to introduce three new downstate casino licenses. One of those licenses is expected to be awarded for New York City and there are plenty of leading gaming operators and developers who have already shown interest. Overall, there are nine bids for a casino license for the Big Apple.

Earlier this week, city lawmakers approved important changes to the regulations, paving the way for the development of one casino. On Thursday, the New York City Council voted and approved a text amendment that would “allow applicants, with a proposed gaming site in the city, to be considered by committees of local officials established by the State’s casino licensing process.”

The City Council greenlighted the Gaming Facility Text Amendment which makes changes to New York’s zoning. Previously, casinos were not permitted within the Big Apple’s zoning, but the change seeks to address this conflict while still ensuring that local communities can help decide whether or not a casino is established in their area.

Operators interested in casino licenses must first secure approval from the local Community Advisory Committees (CACs), which will review submissions made before June 30, 2025. According to the City Council, after CACs approval and a Gaming Facility Location Board recommendation, one of those bids would be able to secure one of the three casino licenses announced by the New York State Gaming Commission.

“Currently, casinos are not permitted uses within New York City’s zoning. This text amendment would resolve this zoning conflict, while maintaining communities’ decision-making authority on casino licenses within the State’s application process, which first requires approval by local Community Advisory Committees (CACs),“

reads a statement from the New York City Council

Casino Opponents Raise Concerns

Although the voting of the zoning change text passed, it wasn’t without opposition. A majority of 35 council members supported the change while 15 members voted against it.

The City Council confirmed that the sites that would be considered for a casino would be “limited to high-density commercial and manufacturing areas.” This was precisely one concern for Kalman Yeger, one of the council members who voted against the zoning text change. Quoted by amNewYork, he revealed: “Casinos are bad, but they’re even worse in our residential neighborhoods.” Moreover, Yeger said: “They’re worse just blocks away from our schools, from our kids, from family lives. And no amount of revenue is worth destroying neighborhoods in the city. So that a lot of people can make some money…It’s bad policy.”

Despite the progress, there’s plenty of time before the potential approval of a casino license in New York.

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The Adams administration unveiled a comprehensive zoning proposal that could pave the way for casino developments across broad sections of New York City. 

Proposed Zoning Overhaul Opens Doors for Casinos Across New York City

Unlike the city’s current zoning regulations, the proposed changes would permit the establishment of casinos in any manufacturing district and nearly all commercial areas, with minimal restrictions on their size. The scope of the proposal extends beyond just gambling halls, as developers could incorporate additional amenities within the casino footprint, such as restaurants, hotels, bars, and performing arts venues.

City officials argue that these sweeping changes are essential to streamline the regulatory process for the winners of the highly sought-after casino licenses. The move is seen as an effort to position New York City as a more attractive option compared to neighboring areas, where casinos are currently not allowed under existing zoning codes.

Dan Garodnick, the head of the Department of City Planning and the City Planning Commission, stressed the importance of establishing a level playing field for casino applicants within the city, reported AM New York. He stated that it was crucial to create such an environment as the state considers proposals for casinos downstate, allowing applicants within New York City to compete for this opportunity.

Concerns Rise Over Ambiguous Casino Zoning

While several bids for casinos have emerged, targeting prime locations such as Times Square, Hudson Yards, and Coney Island, some industry insiders believe existing “racinos” at Aqueduct Racetrack and Empire City Casino have an advantage due to their current footprint in racetracks with video slot machines.

The proposed zoning changes are expected to face a rigorous approval process, involving local community boards, Borough Presidents, Borough Boards, the City Planning Commission, City Council, and the Mayor. If approved, the amendment would expedite the process for chosen casino projects, bypassing the traditionally lengthy and complex land-use review.

However, the lack of specificity in the proposal has raised concerns among civic leaders. Layla Law-Gisiko, the land use chair at Manhattan Community Board 5, expressed bewilderment over the vague nature of the proposal, especially considering the meticulous details required for other zoning amendments.

Critics point out apparent contradictions within the proposal, such as the exemption of casino developers from the special permit requirement for new hotel developments, a requirement implemented in 2021 to mitigate adverse effects on local communities. The proposal’s ambiguity has sparked calls for a more detailed and strengthened review process to ensure the responsible development of potential casino complexes in the city.

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