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Legislators in New York Request Faster Casino Licensing Following Elimination of Traffic Congestion Tax

Last week, New York Governor Kathy Hochul switched her stance on the Metropolitan Transportation Authority's "congestion toll" proposal.

SymClub
Jun 13, 2024
2 min read
Newscasino
New York’s plan to institute tolls into Manhattan to help fund the MTA has been shelved after...
New York’s plan to institute tolls into Manhattan to help fund the MTA has been shelved after several lawsuits were floated. Now, state lawmakers in Albany are turning to the three downstate casino licenses that can be issued to help fund the public transit system’s needed improvements.

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Legislators in New York Request Faster Casino Licensing Following Elimination of Traffic Congestion Tax

New York governor Kathy Hochul (D) recently shifted her stance on the Metropolitan Transportation Authority's (MTA) "congestion toll" plan that aimed to impose a $15 fee on vehicles entering Manhattan south of 60th Street.

Hochul's shift in opinion stemmed from potential lawsuits filed by New Jersey Governor Phil Murphy (D) and various unions. Although these legal threats proved successful in altering Hochul's stand, the MTA is now exploring alternative funding methods to generate the anticipated $1 billion annually from the congestion toll. The MTA maintains that this financial influx is crucial for repairing and enhancing the city's public transportation system.

Some legislators in Albany propose that the most practical solution involves granting the three outstanding downstate casino licenses, each carrying a one-time upfront fee of $500 million.

Take Your Chances

Senior gaming advocate and Assemblyman Gary Pretlow (D-Mount Vernon), co-chairman of the Racing and Wagering Committee, emphasizes that the casino issue must be resolved as soon as possible to help the MTA financially.

Pretlow was not fond of the congestion plan. State Senator Joe Addabbo (D-Queens), co-chairman of the Senate's Racing, Gaming, and Wagering Committee and proponent of a bill designed to hasten the casino bidding process, shares Pretlow's sentiment that a prompt casino decision is necessary.

Addabbo imagines that the casino licenses could potentially yield $2.5 billion to $3 billion in revenue. In his estimation, the $500 million upfront fee associated with the casino licenses could be increased.

In conjunction with Addabbo, the New York State Legislature recently greenlit Senate Bill 9673, authored by Addabbo, which would demand casino bids be handed in by the end of business on July 31, 2024. The New York State Gaming Facility Location Board would then be obligated to review these proposals. Subsequently, acceptable bids would need to obtain backing from their respective community advisory committees and meet particular eligibility criteria.

If Hochul decides to approve the statute, the board would be mandated to appraise the remaining bids that met the aforementioned criteria. The board would be expected to confirm the three winning bids before March 31, 2025, with all successful bidders instructed to make their licensing payments by June 30, 2025.

Bill Prospects

With the previous MTA revenue plan canceled following the congestion toll proposal's demise, Hochul may be more inclined to support the casino legislation.

Typically, Hochul has 10 days to sign a bill, veto it, or ignore it, allowing it to become law without her endorsement. However, since the legislation was sent to her office after the legislature's adjournment, she now has 30 days to make her move.

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