On a decisive Thursday morning, MGM Empire City emerged as the first contender to secure local approval for a coveted downstate casino license in New York. The unanimous 5-0 vote by its appointed community advisory committee (CAC) marked a significant milestone for the operator, whose proposal now advances to the state’s Gaming Facility Location Board (GFLB) for further evaluation.
Previously, all three bids presented to local committees faced rejection. However, Empire City’s successful approval sets the stage for the GFLB to start a new round of considerations, culminating in recommendations by December 1. The New York State Gaming Commission is tasked with awarding up to three commercial casino licenses by December 31.
Analysts have long viewed the bids from MGM and Resorts World NYC as front-runners. Their established facilities and notable contributions to tax revenues, coupled with deep roots in the community, bolster their candidacies. MGM traces its origins to the former Yonkers Raceway, operating as a video lottery terminal (VLT) venue since 2006. The deep-seated connection of MGM with the area lends credence to its strong bid.
Nevertheless, MGM’s position is not unchallenged. Of the eight proposals undergoing the CAC process, MGM stands as the sole applicant from outside New York City. The company’s application underscored the necessity of a full casino license for survival, arguing that potential future commercial casino openings nearby could jeopardize its viability. This argument resonated strongly with the CAC.
“If Yonkers does not receive one of the three full casino licenses, Empire Casino will wither and die,” remarked CAC Chairman James Cavanaugh. He expressed skepticism that anyone would prefer an “aging slot parlour” over a modern full-service casino. Cavanaugh’s appointment by Yonkers Mayor Mike Spano underscores the project’s local importance and support.
With CAC approval secured, MGM must now remit a $1 million application fee to the state. The GFLB, consisting of four appointed members, will scrutinize the proposal against a set of criteria. The board comprises Vicki Been, chair and NYU School of Law professor; Terryl Brown, Pace University’s vice president and general counsel; Marion Phillips III, SVP of community development and DEI at US News and World Report; and Greg Reimers, a retired finance executive.
Revenue impact forms a crucial part of the evaluation, assessing the economic implications of proposed gaming facilities on existing and potential establishments. As part of their applications, bidders were required to submit revenue projections tailored to various licensing scenarios.
Further evaluation will be based on four weighted categories: Economic Activity & Business Development (70%), Local Impact Siting (10%), Workforce Enhancement (10%), and Diversity Framework (10%). These criteria encompass a comprehensive analysis of each bid’s potential influence on the regional economy and community welfare.
An intriguing aspect of the bidding process, humorously noted by MGM CEO Bill Hornbuckle, involves taxation. Bidders propose their own tax rates, mandated to start at 25% for slot revenue and 10% for other gaming revenue. MGM anticipates matching existing VLT tax rates of approximately 55% while maintaining horse racing purse commitments.
Distinctly, MGM’s bid was the first to have amendments accepted by its CAC. Previous CACs had rejected similar submissions, often filed shortly before their respective votes. MGM’s amendments, submitted on September 17, underwent a week of deliberation before receiving unanimous acceptance. This development reflects the collaborative efforts between MGM and the committee to address concerns and refine the proposal.
Meanwhile, other bidders face varying degrees of progress and challenges. The CAC reviewing Bally’s Bronx has requested modifications, with Bally’s responding to the demands ahead of a scheduled vote. In contrast, Coney has made several amendments despite public opposition from committee members. Resorts World and Metropolitan Park have yet to file amendments.
MGM’s approved amendments encompass commitments to enhance safety and infrastructure, guaranteeing a minimum revenue stream for the city beginning at current contribution levels. The bid also pledges to reimburse the city for construction costs and includes other concessions aimed at bolstering community support.
As MGM proceeds to the next phase, the spotlight remains on the GFLB’s upcoming evaluations and ultimate recommendations. The competitive landscape is marked by robust bids and strategic positioning, with stakeholders keenly observing the potential deployment of up to three new casino licenses that could reshape New York’s gaming industry.
In contrast to MGM’s forward momentum, dissenting voices within the industry caution against over-saturation of the market. Some experts warn that adding multiple full-scale casinos in close proximity could dilute revenues and strain existing operators. Balancing growth with sustainable market dynamics remains a critical consideration for decision-makers.
As the December deadlines approach, the unfolding saga of New York’s casino licensing process continues to capture the attention of industry participants and local communities alike. The outcomes hold significant implications for economic development, job creation, and the broader gaming landscape in the region.
Topics: New York · Licensing · Gambling Taxes · Financial Results · Gambling Regulation · Enforcement
Looking for somewhere to play? Browse our current no deposit bonus listings, with verified codes and the full wagering terms for each offer.
4.5/5
