Licenses for the next three casinos in New York could cost $1 billion or more each, double what was initially expected. The license fee was proposed by the state Senate in a bookmaker’s budget released Sunday.
The budget says that the New York State Gaming Commission “will determine a licensing fee to be paid by a licensee within 30 days of granting the license which will be deposited into the Commercial Gaming Revenue Fund; provided, however, that , such licensing fee is not less than one billion dollars per license”.
Meanwhile, the Assembly’s plan does not include a proposed amount for the three state licenses. Licensing terms will be negotiated as part of the budget for the fiscal year, which begins April 1.
Additionally, the Senate proposal makes a nod to Resorts World New York in Queens and Empire City in Yonkers – which are looking to expand into full-fledged casinos – including language that encourages state regulators to “consider private equity investment”. made before the effective date of the license.
“We’re looking at about $2.5 to $3 billion in revenue and educational funds and good jobs,” Senator Joe Addabbo said of state casino licenses, according to PlayNY. “You’re talking about thousands of construction jobs as well as post-construction jobs, and as an elected candidate that’s what your dream is – to find jobs for your people, especially in the post-pandemic period.”
According to Addabbo, the Senate “realistically” sees industry actors willing to pay $1 billion for the license. “We know the value of having a gaming license in New York,” the senator said, noting that there is “an entity out there” that is willing to pay $1 billion “upfront.”
When determining whether an applicant is eligible for a license, the assessment will take into account a number of factors. These include making the maximum capital investment unique to land acquisition and infrastructure improvements; maximizing the revenue received by the state and localities; and providing the greatest number of quality jobs.
Under the proposed budget, the State Gaming Commission would have to issue a request for a request by July 1, 2022, with a submission deadline no later than 60 days after the date of that request.
Licenses would have to be granted by December 1, 2022, with fees payable by that date. The initial duration of the licenses would be 10 years each, with renewal at the discretion of the state regulator.
Both MGM Empire City at Yonkers Racecourse and Genting’s Resorts World at Aqueduct Racecourse in Queens are ready to apply for a full casino license to expand their current offerings with live card table games.
The venues have received public support for this effort from senators and the communities in which they are operating.
“Both NYC Resorts in Queens and MGM Empire in Yonkers have proven to be very successful gaming venues, even without being full-service casinos,” Addabbo said in an interview last month. “They’ve acclimated very well and have been great community partners, hiring a lot of local residents.”
While the senator said permits could not be given to them alone, he stated that venues were properly positioned to apply for them, with one factor being entities “already in existence, with credible success”. “And in terms of speed to market, within a month, both could be up and running, also an important factor to consider,” Addabbo said.
But issuing the three coveted casino licenses isn’t the only gambling-related proposal on the budget.
The Senate plan also calls for expanding mobile sports betting vendors to 16, nearly double the number of current operators (9), a proposal that has been under discussion for some time.
