The New York State Gaming Commission has determined the final requirements for companies which want to bid for the downstate casino licenses. The financial requirements include the fees and the minimum capital investments necessary to receive the coveted permit.
The state will issue three downstate casino licenses, and operators competing for them should prepare to invest a minimum of $1 billion.
NY Casino Application Rules
The New York State Gaming Commission’s Gaming Facility Location Board (NYSGC) decided in a quick meeting that casino operators who want to establish a casino facility in the state will have to pay a $500 million licence fee and invest at least $500 million as capital investment.
The board reached this decision unanimously, and the bids will be received by June 27. The commission will decide who will get the three available state casino licenses by the end of 2025.
However, these are not the only rules applicants must meet. The companies must also complete environmental reviews and zoning by September 30. This task has proven to be a complicated one, as seen in the case of Bally Corporation, which finally received a green light from the New York City Council for its Bronx project at the beginning of June. At the same time, the Coney Island and Manhattan bids are still under environmental review.
Community Advisory Committees Will Determine Support
Once all bids are submitted, each will have a dedicated Community Advisory Committee (CAC) that will be responsible for assessing the community’s support and sentiment regarding the project. The NYSGC says that these committees “will be created to review the application, gauge local support, and ultimately issue a finding determining whether there is adequate support for the proposed project.”
It means that they will hold regular meetings to collect feedback and vote on whether the bid should continue, with a two-thirds majority required for approval.
The members of the committees will depend on whether the project is located in New York City or outside of it. If the project is situated in New York, the members will include the Governor, the Mayor of New York City, and the applicable state senator, assembly member, borough president, and city council member.
Final Review and Decisions
All committees will have to reach their decision by September 30, and companies that receive approval will have to submit all documentation to the facility location board. Furthermore, bidders will be required to pay a $1 million application fee.
The tax will be defined during the bidding process. Applicants are allowed to set their own tax rates on gross gaming revenue, provided they meet the minimums of 25% for slot machines and 10% for other revenue streams.
Finally, the board will evaluate proposals and bids by the following criteria: economic development (70%), workforce enhancement (10%), local siting impact (10%), and diversity plans (10%). The process must be finalized by December 1, 2025.
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