Downstate Casino Bids: NY Gaming Board Answers 350+ Questions
The New York Gaming Facility Location Board (NYGFLB) released 353 questions and answers on December 16 regarding its request for applications (RFA) for downstate casino bids. This marks the second round of clarifications for potential applicants, following an initial batch released in August. Here are the key points from the new document.
Licencing and Application Details
The NYGFLB is responsible for recommending projects for three casino licences in downstate New York, while the New York State Gaming Commission (NYSGC) retains the final say on licence approvals. Applications must be submitted by June 2025, with licences expected to be issued by December 31, 2025.
Highlights from the Q&A include:
- Ownership Disclosures: Individuals or entities with a 5% or greater ownership stake must submit detailed applications. Holding companies with over one-third ownership are also required to provide licensing details.
- Background Checks: All key owners and officers must undergo individual investigations.
- Application Fee: The $1 million fee for consortium applications is left to the applicants’ discretion to allocate.
VLT Licencees and “Speed to Market”
Two racinos, MGM’s Empire City and Genting’s Resorts World New York City, are seen as strong contenders due to their existing Video Lottery Terminal (VLT) licences and ability to expedite the addition of table games. However, these facilities must invest at least $500 million in upgrades before beginning commercial gaming operations.
Taxes and Revenue
The expected tax rates for new casinos are 25% on gross gaming revenue (GGR) from slot machines and 10% on GGR from table games. By comparison, digital sports betting in New York is taxed at 51% of GGR.
Community Engagement
Each casino project must establish Community Advisory Committees (CACs) to ensure public support within the applicant’s district. At least two public hearings are required, and CAC members must document findings to advance applications. Applicants dissatisfied with CAC decisions may seek judicial remedies.
Environmental Reviews
Applicants are expected to complete environmental reviews before the CAC vote deadline of September 30, 2025. Some bidders, such as Las Vegas Sands, have already obtained legislative approval for their environmental plans.
Construction and Facility Requirements
Temporary casinos, defined as facilities outside the footprint of permanent gaming floors, must meet specific construction guidelines and be approved by the gaming commission. Additionally, applicants must detail square footage for various uses, with a minimum $500 million investment required for pre-opening operations.
Employment and Diversity
Applicants must adhere to employment commitments, using the US Department of Commerce’s “Good Jobs Principles” to guide pay structures. Licences may include diversity benchmarks, such as a 30% utilization goal for minority- and women-owned businesses in pre-opening and ongoing capital expenditures.
Alcohol Policies
The board confirmed compliance with existing state laws, including limits on complimentary drinks, restrictions on open bars, and bans on serving alcohol to minors.
