Photo byMichael Discenza onUnsplash
As New York braces itself for three new downstate casino licenses, SL Green is seeking a loan extension on a $743 million deal on a Broadway property that has been proposed as a potential new casino site.
New York’s multi-billion dollar casino industry was boosted by news in 2022 that three new licenses would be issued for operations to set up in the downstate area. Since then, some of the country’s largest casino operators have bid for the licenses, with a decision expected by the end of 2025.
The state’s online gambling industry could also be boosted in the future with many experts expecting online casino legislation to pass in the next few years.
At present, New Yorkers who want to enjoy casino betting online must explore offshore casinos and the best Plinko gambling sites. Online gambling expert Kane Pepi explains that these sites often offer enticing bonuses that include free bets and deposit matching, helping players benefit from online alternatives to traditional, land-based casinos.
New York misses out on the revenue generated by offshore casinos that operate in external jurisdictions, and this could be a motivating factor for legislative changes.
The American Gaming Association showed that the state’s existing casinos generated $4.72 billion in gross gaming revenue and contributed $4.19 billion in tax and tribal revenue share in 2023.
Almost 70,000 jobs are directly supported by these casinos, and local businesses and public transport networks all benefit from increased footfall.
The three new casinos are estimated to bring in as much as $3 billion, including a $500 million license fee and $1 million application fee. They will be taxed a minimum of 25% of GGR on slot machines and 10% across other gaming revenue.
Tax allocation generated by casinos in New York is divided between gaming administration, marketing, agent commissions, and education funds.
Twelve potential locations have been discussed for the three downstate licenses, including a luxury development at Hudson Yards. Wynn Resorts is part of a team that proposed the development of the existing rail yard, but there has been opposition from locals concerned at the impact it will have on the existing community and High Line.
Hudson’s Bay Co. has been in discussions about a Fifth Avenue casino development that would take over the top three floors of their Saks Fifth Avenue store.
Vornado Realty Trust had considered a bid for a casino license for the old Hotel Pennsylvania location. However, they decided to move forward with plans for an event space instead.
A 7-acre plot in Midtown East was considered by the Soloviev Group. It planned residential buildings, a hotel, green space, and a below-ground casino near the UN headquarters. However, the plans were opposed by the Manhattan Community Board 6 who voted against it.
The purchase of the Empire City Casino and Yonkers Raceway in 2019 by MGM Resorts pre-dated the license announcement, but the $865 million investment could be wise.
An expansion of operations to include live table games to complement its existing slot and electronic games could have a good chance of success.
Bally’s took over a former Trump golf location at Ferry Point and is proposing a 17-acre casino site, while the redevelopment of Citi Field by Steve Cohen (owner of the New York Mets) could include a casino proposal.
Las Vegas Sands has proposed converting the Nassau Coliseum parking lots into a casino as part of a larger redevelopment project covering 70 acres. The plans include housing, offices, and an entertainment venue alongside the casino.
Resorts World New York City at Queens’ Aqueduct Race Track has already spent a lot of money campaigning to expand operations beyond their slots and video games, with figures exceeding $2.7 million.
Another potential venue is Coney Island with backers believing that a casino on its famous boardwalk could help take the location to the next level.
SL Green Realty Corp. is working alongside Caesars Entertainment and Jay-Z to bring a casino to Times Square at 1515 Broadway in a deal worth $4 billion. However, the bid is facing early trouble with reports that the real estate group’s $743 million loan entered special servicing with the potential for default. Despite this, reports also show that SL Green is up to date on mortgage payments and the fully leased property generates significant revenue.
Bidders must ensure that locations are suitable for casino operations and should also consider the implications to existing infrastructure. While there will be a positive economic impact on the surrounding area, proposals will also have to think about how local residents will be affected, and whether an increase in traffic and footfall can be sustained
2025 is set to be an exciting time for New York’s casino industry, with many eager to learn who will win the three licenses. The potential for online casino gambling is also something that will be debated.
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