Hot-Topics

New York Post Disagrees: Casinos Won't Resolve MTA Funding Issues

NY Post Argues Casinos Won't Solve MTA Financing Problems.

SymClub
Jun 21, 2024
2 min read
Newscasino
New York Gov. Kathy Hochul speaks to reporters on June 7, 2023. The  is urging her to not rely on...
New York Gov. Kathy Hochul speaks to reporters on June 7, 2023. The is urging her to not rely on downstate casinos to solve the MTA’s funding needs.

Attention!

Limited offer

Learn more

New York Post Disagrees: Casinos Won't Resolve MTA Funding Issues

Following a sudden shift in Governor Kathy Hochul's (D-NY) stance on a congestion tax that could've generated funds for the Metropolitan Transportation Authority (MTA), the MTA still faces financial constraints. Some politicians are suggesting an expedited approval process for downstate casinos as a remedy, but the New York Post doubts this is a wise move.

In a piece published on Saturday, the Post's editorial board stated that the New York State Assembly recently passed a bill, sponsored by Assemblyman Gary Pretlow (D-Mount Vernon), that would hasten the awarding process of three casino licenses for the NYC area. Corresponding legislation, from Sen. Joseph Addabbo (D-Queens), exists in the State Senate. While the hefty application fees ($500 million per license) might prove beneficial to the MTA, the Post views it as a poor decision.

The MTA is undoubtedly in need of cash, but hastily approving casino deals to provide it may not be the best solution — and it has quite a few competitors for the title of worst idea, the editorial board commented.

Lobbyists and gaming industry analysts are optimistic that casino licenses will be awarded this year. However, other experts believe it's more likely the issue will be addressed in 2025, due to bureaucratic delays among other factors.

Under the bills proposed by Addabbo and Pretlow, judgments on the successful bidders could be made as early as the first quarter of 2025 — a vast improvement over the current timeline, slated for late 2025 or early the following year.

New York Casino Process is Questionable

Budget experts and environmental groups were disappointed when Hochul backed away from the congestion tax plan. This proposal had vehicles paying $15 to enter Manhattan below 60th Street, with rates increasing for small and large trucks. Motorcycles, rideshares, and taxis would've been subject to lower fees.

The congestion tax proposal was seen as a means to generate funds for the MTA, while addressing issues related to traffic and air pollution in Manhattan. This would've brought in revenue for the city and state, but now the initiative is off the table, and the MTA's capital needs lack a quick solution — except maybe by speeding up the casino process.

However, the process of awarding the downstate casino licenses has been repeatedly delayed and criticized by gaming industry experts, with some even dubbing it a "circus." The Post agrees, mentioning that leveraging casinos to raise funds for public transit could open the door to corruption.

"First off, the licensing process reeks of corruption — deep pockets of the bidders (with minimum expected bids of $500 million or even more) will lure greedy politicians like flies to trash," the editorial board commented.

The Post Highlights Other Casino Concerns

The gaming industry's biggest players are among the 11 groups vying for the downstate permits. This has proven to be a financial bonus for the campaign coffers of Hochul and other New York politicians.

The new gaming venues are also expected to create numerous temporary and permanent jobs, as well as bolster local and state revenues through various means. However, this is just one side of the story. Casinos in New York are not all positive, as the Post points out, as there is no guarantee that the venues will sport the glamour of Hollywood casinos and there may be crime issues, including drugs and prostitution.

Read also:

Attention!

Limited offer

Learn more