The fight to bring Las Vegas-style casino gambling to New York state culminated in a voter referendum allowing for seven licenses in 2013. The issue quieted down in the national and international press until former Governor Cuomo set up a task force as part of the New York State Gaming Commission to choose four locations in Upstate New York and recommend full commission approval for four applicants.
Approvals eventually came from the Gaming Facility Location Board and licenses were granted in 2015 for state-of-the-art casinos hosting real slot machines and real table games in the Finger Lakes, Albany, and Catskills regions as well as what was defined as the Southern Tier. Video lottery gaming terminals were also approved for the Long Island area.
Resorts World Catskills at Monticello, Rivers Casino & Resort Schenectady, Del Lago Resort and Casino in Tyre, and Saratoga Gaming & Racing at Saratoga Springs settled into the business providing gambling entertainment as the rest of the world barely noticed there were at least 3 more licenses to be had – and these were for the New York City area.
Once issued, there will be a 7-year lock-out period with no further licenses issued anywhere in the state. After that time, the New York State Legislature can allow the Gaming Commission to offer as many as three more. Any licenses beyond the 10 authorized by citizens in the 2013 referendum would require a change to the state’s constitution.
World’s Largest Gambling Concerns Want Licenses in NYC
Several weeks ago a few of America’s biggest casino operators, a major Asian spawn of SPAC, and an upscale NYC waterfront restaurant and event venue entered the contest for lucrative New York City casino licenses – that contest is bound to generate even more controversy and dissent behind the scenes, more and more bizarre actions by heretofore unknown special interest groups, and just enough palace intrigue to keep observers glued to the news feeds as the PR machines gear up for what they do best – entertain.
Not all of the interest is in the City proper, it also reaches into suburban Yonkers where MGM Resorts has positioned itself for a fight after it acquired Empire City Casino and Yonkers Raceway from the Rooney family who had owned the race track since the early 1970s. The nearly 100-acre property may seem to be a remote suburban curiosity, but it’s also located just a little over a dozen miles from Times Square as the crow flies.
Overall, the Gambling Commission received 30 requests for information on the three licenses that will be up for grabs in 2023. Most notable among them were MGM Resorts International, Las Vegas Sands Corp., Wynn Resorts, Rush Street Gaming, Genting New York LLC, Hard Rock International, Bally’s Corp., and UE Resorts International, Inc. a new entity formed by the merger of Okada Manila International and a blank check company, or Special Purpose Acquisition Company – the new rage in unbridled mergers and acquisitions, and finally, The Water Club in Manhattan.
MGM’s Empire City Casino at Yonkers Raceway, Genting’s Resorts World New York City at Aqueduct Racetrack in Jamaica, Queens, and Suffolk Regional Off-Track Betting Corp – operators of Jake’s 58 Casino in Islandia all currently offer VLT gaming or video lottery terminals that operate differently than actual Las Vegas-style or online random number generator slots.
According to Lohud, a Journal News publication in the Lower Hudson Valley, Resorts World said in a statement: “We look forward to continuing to work with our partners at the Gaming Commission during this process, and, if granted a full casino license, we are uniquely positioned to provide elevated support to New York immediately.”
Resorts World also owns Resorts World Catskills in Sullivan County and is related to the Genting Group of Malaysia by ownership interests.
US and Asian Interests Vie for a Piece of the Largest Untapped US Gambling Market
According to the same report, those vying for the new licenses have tried to sweeten the deal over the years in an attempt to lift the moratorium on new licenses that will be lifted next year. Some of the inducements and brushed off “sweet nothings” whispered in the ear included inducements of up to half a billion dollars to the state for each license and compensation to the Upstate casinos who would presumably have to agree to lift the calendar defined moratorium.
Many of the recent submissions have been released as heavily redacted documents, causing concern among some watchdog groups as well as license contenders.
According to a statement by the Gaming Commission, “Most redactions reflect requested positions of the submitter about material exempted from public disclosure.”
The legislative director for the New York Public Interest Research Group, Blair Horner, reportedly said the Gaming Commission should advise the public as openly as possible about the bids pursuant to the Public Officers Law.
Horner stated: “These are not hard questions to have answered by the Committee on Open Government.”
Rush Street Gaming’s response was not redacted nor were documents from Manhattan’s Water Club. Rush Street operates the Rivers Casino in Schenectady. They urged the Commission to modify the process to require applicants to provide details as well as to provide a framework and criteria on how authorities would grade each proposal.
Rush Street stated in their response: “It is critical that there be a level playing field for all potential applicants within the process, creating an impartial system and incorporating community input and assessment of current operations.”
Underdog Bid Could be Entertained
The Water Club was not shy about its intentions, with the posh floating eatery and event venue’s owner Michael “Buzzy” O’Keeffe saying that this would be the best location for a Monte Carlo-style boutique casino that could be expanded on in the future. In keeping with the East River airs, he also said he wanted to keep it classy by forgoing slot machines in favor of gaming tables only.
O’Keeffe wrote in his proposal: “In the borough of Manhattan, from river to river, this is the most viable location to place a smaller boutique (Monte Carlo) style casino that is easily expandable. An upscale Monte Carlo-style casino on the East Side, Mid-Manhattan, and very visible along the FDR Drive on the East River.
“Building on the waterfront is far less expensive than building in Midtown Manhattan. It is the easiest deal for the state and the city to make, as it already exists, and is ready to go.”
While O’Keefe is highly regarded as a restaurateur, no gaming experience is listed in his response. It’s currently unclear who he would partner with if the Commission entertains his interest in competing for a license.
Source: Gambling giants eye New York City-area casinos as three coveted licenses are up for grabs, Lohud | The Journal News, December 21, 2021