ALBANY — As the bidding deadline for three downstate casino licenses draws near, eight bidders are anticipated to submit applications by Friday, marking a significant stage in a competitive process that has unfolded over years.
It has been 12 years since New York voters approved a statewide referendum to amend the constitution, allowing for the establishment of casino gambling.
Four casinos were initially built upstate, as state leaders sought to provide them with a five-year head start before permitting downstate expansion.
Plans earlier suggested that downstate licenses would be awarded in 2023, but now the final three licenses will be granted by the end of this year.
Proposals are expected for various locations, including Coney Island in Brooklyn, Aqueduct Racetrack and Citi Field in Queens, near the United Nations, on the far West Side and Times Square in Manhattan, Ferry Point in the Bronx, and Yonkers Raceway.
However, notable absences are present among the bidders.
Wynn Resorts has withdrawn its proposal for Manhattan, while Las Vegas Sands has also removed its bid for Nassau County.
Both companies invested considerable time and resources into building their proposals, gaining support from local stakeholders, only to drop out just weeks before the bidding deadline.
Bennett Liebman, a government law professor at Albany Law School of Union University and a former member of the state Racing and Wagering Board, commented, “Sands and Wynn are A-list casino developers. To see them fade away is a major surprise.”
Liebman noted that the decision reflects the challenging landscape created by the State Legislature, which has established numerous barriers for prospective developers.
He explained that various zoning, environmental, and economic requirements effectively added two years to the process, necessitating zoning changes from the New York City Council, as well as legislative approvals from Albany for certain sites.
The state Gaming Commission aimed to methodically resolve such issues to ensure a smooth application process.
Moving forward, approval from local Community Advisory Committees is another critical step, as these committees must vote by September 30 before the Siting Board can consider any applications.
The current scenario is further complicated by local opposition, particularly in Manhattan, where proposed casinos may face significant hurdles.
Liebman raised concerns about the likelihood of any Manhattan proposals successfully overcoming community resistance, noting, “Does anyone in Manhattan get through the process?”
Senator Brad Hoylman-Sigal (D-Manhattan), who recently won the Democratic primary for Manhattan borough president, has been a vocal opponent of casino development.
Assemblymember Zohran Mamdani (D-Astoria), who secured the Democratic mayoral primary, generally opposes casinos, while incumbent Mayor Eric Adams supports the casino initiatives.
Despite not having a direct vote on the licenses, the prevailing sentiment appears to lean less favorably towards casino projects in Manhattan than in other potential locations.
In the days leading up to the application deadline, a rally was organized by proponents of the Times Square proposal, featuring labor and hotel representatives, neighborhood leaders, and vendors.
The Rev. Al Sharpton expressed his support for their initiative as well.
Conversely, a coalition of Broadway stars, stagehands, ushers, block associations, and nonprofits held a counter-rally titled “No Times Square Casino.”
In a developing story, the backers of the anticipated West Side bid announced this week that Hyatt Hotels will join their project, named “Avenir,” a decision viewed as beneficial to their prospects.
As of late Thursday, only one bidder had officially announced its application submission before the deadline: The Mohegan-Soloviev Group is proposing a project for Manhattan’s East Side near the UN, called “Freedom Plaza.”
Their proposal is not limited to a casino; it also entails a comprehensive development plan that includes 500 new housing units, a market, a daycare center, and two hotels, among other elements.
Michael Hershman, CEO of Soloviev, stated, “This application represents years of meaningful listening and collaboration, and it will uniquely deliver what New Yorkers need most: accessible green space, housing that working families can afford and well-paying union jobs.”
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