Sen. Addabbo Renews Call for Quick Approval of Casino Licenses

Senator Joseph Addabbo Jr., chair of New York State’s Committee on Racing, Gaming, and Wagering, has issued another call of urgency: fast-track the approval of casino licenses to spur the industry’s growth. Addabbo’s remarks came shortly after MGM Resorts International withdrew its application for a state license, leaving Bally’s Corporation, Genting Group’s Resorts World, and Hard Rock International (in partnership with Mets owner Steve Cohen) as the top contenders to win the three available downstate licenses. 

According to Addabbo, fast-tracking the review of the applications for licenses will help in bolstering the state’s bid to legalize online gambling.

Will New York Approve 2 or 3 Gaming Licenses?

In a surprising move last week, MGM announced that it’s backing out from its bid to set up a New York casino, leaving three companies actively campaigning for the three possible licenses. The Genting Group (Resorts World) and Hard Rock (Metropolitan Park) have submitted their plans for Queens, while Bally’s is planning to build a casino in the Bronx. New York isn’t mandated to award three licenses, it may decide to approve only two.

Although it’s within the discretion of the state to decide on these licenses, Sen. Addabbo, Chairman of the Senate Committee on Racing, Gaming, and Wagering, prefers that all three applications be approved. In a recent statement, Addabbo shared that “all three remaining standing applicants are duly owed the license”.

A Quick Look Into NY’s Licensing Process

The New York State Gaming Facility Location Board is tasked to review and issue the three licenses in the downstate region, which includes Long Island, New York City, and Westchester County. This five-member panel is expected to announce their decision by December 1st.

Delaying the decision even further will create a ripple effect on the companies and the broader industry. According to Sen. Addabbo, prolonging the decision will delay the construction and pause potential job hiring in the area. Also, the state will be missing out on potential income from license fees.

Looking Beyond: What Can Players, Operators, and the Industry Expect from these Licenses?

If things go according to plan, the panel will release their decision on December 1st. It’s expected that the approval of three licenses will unlock major private investments and bring up to $1.5 billion in fees. Also, the opening of new casinos will spur job hiring in the area. 

Furthermore, the approval of fresh licenses can spur the growth of the gaming industry, including the sweepstakes casino industry. Senator Addabbo further added that by approving and regulating casinos within the state, they can stop the flow of gambling money to neighbouring states such as Pennsylvania and New Jersey, and use this to fund many projects.

REFERENCES

• New York Times
• Bloomberg
• Office of Senator Joseph Addabbo Jr.
• New Jersey Division of Gaming Enforcement