New York Needs to Recognize the Financial Gains from Casinos, Says Pretlow
New York Assembly member Gary Pretlow (D-Mount Vernon) thinks it's high time for New York to step up and reap the rewards of casino gaming in the New York City area.
Two years ago, New York voters were led to believe the process for approving three casino permits would be sped up. However, this has proved to be far from the case, and it looks like decisions on which companies will be awarded these highly coveted licenses might not be made until late 2025 or early 2026.
To prevent any further costly delays, Pretlow and Senator Joseph Addabbo (D-Queens) recently introduced legislation. If this legislation is signed into law, the permits could be awarded as early as March 31, 2025. Pretlow sees this as an opportunity to help minority communities.
"It's crucial that we get this done," Pretlow wrote in an article for the Yonkers Times. "New Yorkers need more than just blackjack or roulette tables. Black and Brown families are fleeing the downstate region due to the lack of job opportunities. Schools are struggling with shoestring budgets. Commuters are dealing with long, slow-moving journeys, worsened by outdated infrastructure."
Those who follow the gaming industry were hopeful there would be movement on awarding the New York casino licenses this year, but other experts warned it could take until 2025, citing various reasons, including bureaucratic delays.
Let's 'Move the Deck' on New York Casinos
Pretlow also highlighted that New York is facing a $9.5 billion budget deficit. If $500 million in license fees per winning bidder, or $1.5 billion in total, were collected, it could help cover this gap. Some industry observers have suggested the licensing fee could increase to one billion dollars per permit, and gaming companies would have to pay if they wanted to tap into the lucrative New York market.
At present, the licensing fees are already a significant amount of money, but Pretlow believes the state must act quickly and finalize the process. "But first, we need to actually start moving the deck," he added in the op-ed. "New York State committed to speeding up the process two years ago. The intention was for bidding to begin in 2023, but the goalposts continue to shift. The Gaming Commission's recent announcement that license awards would be pushed back to the end of 2025 means that the tens of thousands of construction and permanent jobs promised by every bidder will only materialize two years later - at best."
It's not just license fees - New York City-area casinos could potentially generate billions in income and sales taxes, among other revenue sources, for the state over time.
Time is Running Out
Though the bills proposed by Addabbo and Pretlow could help speed up the New York casino process, it's becoming increasingly urgent. There are only seven working days left in the state's 2024 legislative session. If the state assembly and senate push the bills through, Governor Kathy Hochul (D) might sign them into law. This would set the stage for clarity on the New York casino situation by the first quarter of 2025.
In that scenario, gaming companies and their real estate partners would have up to two years to deal with environmental and property issues.
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Source: www.casino.org
