The New York Gaming Facility Location Board (NYGFLB) is responsible for suggesting candidates for three casino licenses in downstate New York. Prospective applicants are required to submit their proposals by June 2025. Following this, the board will evaluate the applications and provide recommendations to the New York State Gaming Commission (NYSGC), which will issue the licenses by December 31, 2025.
The recent release of a 94-page document answering a second round of questions provided further clarity on technical matters important to applicants, covering a wide range of topics such as the application procedure, rules about alcoholic beverages, construction plans, and tax obligations. These responses built on the initial answers provided in August of the previous year, following the board’s formal publication of its request for applications (RFA).
### Applications and Licensing
The board’s Q&A makes it clear that its role is solely to recommend projects for licensing, while the ultimate decision to grant licenses lies with the NYSGC. The board also addressed several queries regarding application criteria, explaining that many of the 11 proposed casino projects in the New York City vicinity will be structured as partnerships or consortia. Information requirements include signatures from anyone holding 5% or more ownership and individuals involved in the application process for holding companies owning a third or more of the total shares.
Additionally, separate background investigations are necessary for all key owners and officers. On the subject of application fees, the board advised that consortia should “use their best judgment” to decide which entity will pay the $1 million fee. All applicants must utilize the official Gaming Facility Licence Application available on the board’s website. Currently licensed video gaming or commercial casinos must submit a new application, whereas those with existing commercial casino licenses have the option to update existing applications with any key changes. However, a new application is mandated if a higher-tier application is sought.
### Current VLT Licensees
Due to the state’s emphasis on “speed to market,” it’s anticipated that two existing racinos, MGM’s Empire City and Genting’s Resorts World New York City, will receive licenses. Both facilities currently hold video lottery terminal (VLT) licenses and could quickly transition to adding table games and replacing VLTs with slot machines. However, for VLT facilities to transition to commercial operations, they must demonstrate required capital investments of at least $500 million prior to starting commercial gaming operations. The VLT licenses will expire once these facilities acquire commercial casino licenses.
### Taxes
Addressing a question about tax expectations, the board stated that applicants need to assume a 25% tax on gross gaming revenue (GGR) from slot machines and a 10% tax from table games. Comparatively, digital sports betting in New York carries a tax rate of 51% on GGR.
### Community Advisory Committees
State legislation mandates Community Advisory Committees (CACs) to be established in the districts of each applicant. These CACs comprise state assembly representatives, local officials, and leaders of local civic groups. Each CAC must conduct at least two public hearings, after which members determine whether there is enough public support to propel an application forward for board review. If a CAC votes in favor of advancing an application, it must, according to state law, issue findings to demonstrate public support.
Furthermore, the board explained the establishment of “specific appointing authorities” for each CAC, with the gaming commission tasked with their determination. The commission is also responsible for informing CAC members of pertinent information post-appointment. Should there be overlapping appointing authorities, the gaming commission would provide clarity. CACs must schedule their affairs keeping in mind the deadlines stipulated in the RFA.
In response to potential appeals against CAC recommendations, the board mentioned that applicants might pursue potential judicial remedies, paving the way for possible legal challenges over project recommendations.
### Environmental Review
Applicants need to have already initiated an environmental review; those who have not should act swiftly. It’s crucial for environmental reviews to be completed by the time the CAC vote takes place or by September 30, 2025, whichever comes first. Some parties, like Las Vegas Sands, have already secured legislative approval for their environmental plans.
### Construction Requirements
A number of inquiries were made regarding the construction of temporary casinos while awaiting the completion of permanent facilities. Temporary casinos are defined as those not within the permanent gaming floor’s area, needing significant reconstruction to meet full operational standards. The board clarified that a gaming floor could open in phases as long as it is consistent with the permanent gaming floor’s plan. The gaming commission must approve any modifications once the permanent facility is completed.
No specific requirements for facility size were provided; instead, applicants must submit a detailed schedule of their utilization plans, which include the intended use of space for gaming, retail, and other purposes. Applicants are also required to have at least $500 million in pre-opening operational capital investments. Furthermore, with respect to slot machines, applicants should, whenever feasible, procure domestically manufactured machines.
### Alcohol Policy
For alcohol distribution, the existing state regulations for casinos and racinos apply to new facilities. These include rules such as no more than two complimentary drinks per patron at a time, prohibitions against open bars or unlimited drinks outside of private functions, no drinking games, and a strict policy against serving minors.
### Quality Jobs
Questions about quality job commitments led to the board confirming that employment commitments will be a licensing condition, and licensees face potential actions for failing to meet these commitments. They recommended using the US Department of Commerce’s “Good Jobs Principles” to guide employment practices.
### Diversity
Regarding diversity, the board noted the requirement for proposals to include gender, racial, and service-disabled veteran representation in ownership and leadership roles. Applicants must also attempt to engage New York state-certified minority-owned, women-owned, and service-disabled veteran-owned businesses. The board enforces a 30% utilization target for minority and women-owned businesses, applicable to both pre-opening expenditure and ongoing capital investment. Additionally, bids will be evaluated on the basis of diversity in leadership, employee education on inclusion, policy development, and diverse staffing strategies.
Jill R. Dorson contributed to this report.