New York state lawmakers have approved a swift timetable to retrofit three more Las Vegas-style casinos in New York City or neighboring communities, a move that would trigger a bidding war between the casinos. The world’s leading gambling company wants to tap into a huge amount of potential and lucrative market.
In a major lobbying victory for the horse racing industry, the new budget includes financial safeguards to ensure there is no reduction or elimination of existing revenue-sharing payments from operators. computerized lottery games if such establishments obtain a license to become full casinos.
Some legislators believe an advantage is held in the upcoming bidding process by the operators of existing computerized lottery casinos. Aqueduct race track in Queens and the MGM-owned and tracked Lottery Station facility in Yonkers in suburban Westchester County. Reason stated: they already have and operate large VLTK gaming facilities and can quickly grow their sites into full scale casino operations with add-ons.
The new state budget, passed by lawmakers on the night and dawn of April 9 in Albany, envisages each successful bidder for the remaining three commercial casino licenses to pay the state at least $500 million. license fee dollars. That’s half of what the industry and some lawmakers recently believe the state could gain from developers anxious to make Las Vegas-style casinos the biggest population center of the country. nation.
It is not clear how the state came up with its intention to arrange the $500 million licensing fee.
The agreement includes financial protections for funding lines for wallets and livestock and development funds for Aqueduct, Belmont Parkand Racecourse Saratoga. It also includes payments for NYRA operations and capital expenditures.
The final budget agreement, struck on the evening of April 8 in Albany and approved by the two houses a few hours later, will maintain the race’s financial support payments from casino proceeds. computerized lottery — where there is an existing VLT facility, such as at Aqueduct and Yonkers receives a new, full casino license — at rates as of 2019. Annual adjustments will be made is currently based on the consumer price index.
The casino law is a significant win for the racing industry, which has been opposed by animal rights groups and some lawmakers, who want the state to end subsidies from casinos. Existing VLTs, such as Aqueduct, to wallets and livestock funds. Last September, a coalition was formed, called We Are NY Racing, made up of unions, businesses, trade groups and others, to push back against the growing criticism the industry is facing. received from various institutions and legislators.
Officials note that there is nothing in existing state law that can guarantee that cash flows will continue if a VLT casino is converted into a full-fledged casino, as Aqueduct and Yonker are seeking to do.
The New York Racing Association notes that the new casino measure ensures that cash flow will continue for things like wallets. Officials said maintaining the payments at 2019 levels was important as it was the highest year ever for VLT-enabled payments to the racing industry. Further safeguards are put in place in the new budget to ensure those payments grow with inflation year-on-year.
Patrick McKenna, the NYRA’s vice president of communications, said the new state budget “clearly recognizes the importance of horse racing to the New York State economy.”
“Overall fan interest and engagement in motorsport in New York has never been stronger, and the consistent support expressed by legislators in Albany will,” said McKenna. only adds to the sport’s role as an engine of economic opportunity that creates jobs in every corner of the state. in a written statement on Saturday morning.
The final budget agreement moves at least a year earlier than the timetable for the state to award the remaining three commercial casino licenses under an agreement from a decade ago that allowed a total of seven new casinos in the state. state; Four of the casino licenses have previously been awarded to emerging venues, but the casino industry has its eye on the big prize: New York City.
The law establishes a process for selecting the last three casino locations in the New York City area. Some believe that the Aqueduct facility, operated by Resorts World and the Yonkers facility owned by MGM, would be able to easily convince a site’s location panel to choose them because they already function as casinos, although not with slots or real table games. , such as poke.
If backers of those two operators are correct, it would make for a real bidding war for any proposed range of locations from midtown Manhattan to suburban boroughs. The final budget agreement calls for the involvement of some degree of “community consultation”, including representatives of the Legislature, as well as a license term of at least 10 years and not more than 30. five.
Technically, future casino facilities could be located in New York City, Long Island, and three suburban counties north of the city. Public hearings on the proposals must be held and a local council must approve the casino layout plan before it is sent to the state agency for review. Local zoning laws will apply and there will be a minimum tax of 25% on slot machines and 10% on table games. It will set at $750 per slot machine, an annual payment intended to support gaming addiction treatment and education programs.
Racing in Aqueduct
Casino organizations, in order to apply, must meet various criteria to apply, including demonstrating community support for their plan, paying the state $1 million to sign up. and waives the right to sue the state to recover any fees paid.
The act, which was passed by both houses of the New York Legislature as part of a series of passed state budget bills, calls for the creation of community “advisory” boards. For New York City, such a council would consist of six members: each appointed by the governor, senator, council member, county president, and representative city council member. for the area where the casino is proposed to be located. The mayor of the city also has a representative on the board.
The State Gaming Commission, which will ultimately select the winning bidders, must request an application from bidders within 90 days after a majority of the members of the local community advisory board. selected side. The commission will also set a minimum capital investment for each of the remaining three casino licenses, which could include everything from how much money the state wants developers to invest in the casino, guests hotel and other amenities. A separate dedicated committee will be created to review and make recommendations for the various casino applications expected for the region below.
Senator Joseph Addabbo, a Queens Democrat who has previously shown his support for the Aqueduct and Yonkers track facilities to be awarded two of three future permits allowed under the measure. The new legislation, called the casino provisions “a win for the State of New York and the local communities where these licenses are going.”
Addabbo, chairman of the Senate betting, gaming and racing committee, said additional revenue for the state — including a total of $1.5 billion in license fee payments to the three winning bidders going forward — “will allow us to significantly fund important game addiction and education programs.”
The senator said lawmakers will, going forward, continue to play some role in the casino process, including his desire to “ensure that the locating process is being carried out smoothly.” reliably.”
Casino expansion was influenced by an army of lobbyists employed by casino companies, as well as politically powerful labor unions.
Resorts World New York City, which operates the VLT casino at the Aqueduct, says it is eager to “leap up” and acquire the rights to run a full-scale casino on the track. “we are ready, willing and able to immediately double our workforce by adding over 1,000 new union jobs and help the true potential of gaming, entertainment and hospitality follow.” Resort style is realized right in the heart of Queens ”, the company said of the new state-funded casino deal.
A decade ago, New York approved licensing for seven commercial casinos. The first four licenses were located in suburban areas, but a moratorium was put in place until 2023 on the development of the remaining three licenses for sub-markets. The new budget speeds up the timetable for junior casinos by one year.
