We’re edging closer to decision time from the New York Gaming Facility Location Board regarding the Empire State’s commercial casino evaluation process.
Which of the three casino proposals will be lucky enough to receive a licence? Could all three be given the nod? Well, they’re going to have to pass a site visit first.
On 17 November, the board will visit each of the three proposed commercial casino locations – Bally’s Bronx, Hard Rock Metropolitan Park and Resorts World New York City – to examine and understand their locations.
If necessary, clarification will also be gained on their proposal’s transportation links, parking infrastructure and layout components.
Media can be in attendance at the site visits at the same time to collect b-roll footage, but no announcement will be made by the board, nor will there be an opportunity for the public to interact with officials or take part in the site visit.
However, each site visit will be recorded and posted on the New York Gaming Facility Location Board website.
The casino visit schedule on 17 November is as follows, with the latter two being subject to change based on the board’s visitation progress throughout the day:
- 10 am – Bally’s Corporation – Bally’s Bronx – 450 Hutchinson River Parkway, Bronx.
- 12 pm – New York Mets owner Steve Cohen and Hard Rock International – Hard Rock Metropolitan Park – 123-01 Roosevelt Avenue, Flushing.
- 2:15 pm – Resorts World – Resorts World New York City – 110-00 Rockaway Boulevard, Ozone Park.
Final three, but wasn’t there four?
Bally’s, Hard Rock’s and Resort World’s projects were approved by their respective Community Advisory Committees (CAC) in September, advancing to the next stage of the process, but there was a fourth project by another operator that has since pulled out of the running.
MGM Resorts International and its subsidiary, MGM Yonkers, were approved by their respective CAC for its MGM Empire City project at Empire City Casino, Yonkers, but decided last month to pull out of the race.
The operator cited economic reasons, changes to the licence length it expected to receive and the “small geographic area” in which the remaining candidates are clustered – Hard Rock and Resorts World in Queens, Bally’s in the Bronx – as the rationale behind the withdrawal.
MGM Resorts said in a statement: “Today, MGM Resorts made the difficult decision to withdraw its application for a commercial casino license in Yonkers, New York.
“Since submitting our application in June, the competitive and economic assumptions underpinning our application have shifted, altering our return expectations on the proposed $2.3bn investment.
“The newly defined competitive landscape – with four proposals clustered in a small geographic area – challenges the returns we initially anticipated from this project.
“Also, our proposal to renovate and expand Empire City Casino was predicated on the receipt of a 30-year commercial casino license but based on newly issued guidance from the State of New York we now expect to qualify for only a 15-year license.
“Taken together, these events result in a proposition that no longer aligns with our commitment to capital stewardship, nor to that of our real estate partner in Yonkers, VICI.
The operator continued: “MGM Resorts has been a proud partner of the City of Yonkers and the State of New York since we purchased Empire City Casino in 2019. The property has generated more than $5bn for New York State education, including $1.6bn under our ownership.
“We know our decision will impact many individuals; we remain committed to operating the property in its current format and believe it will continue to enjoy success serving customers in Yonkers and the surrounding communities.”
Projects that weren’t approved by their respective CACs earlier this year and didn’t progress included:
- The Coney – Thor Equities, Saratoga Casino Holdings, Legends Hospitality and Chickasaw Nation – Coney Island, Brooklyn.
- The Avenir – Rush Street Gaming, Greenwood Gaming and Entertainment and Silverstein Properties – 11th Avenue & 41st Street, Manhattan.
- Caesars Palace Times Square – Caesars Entertainment, SL Green, Roc Nation and Live Nation – Times Square, 1515 Broadway, Manhattan.
- Freedom Plaza – Mohegan and the Soloviev Group – 686 1st Avenue, Manhattan.
Next steps
While the Resorts World would be a development on an existing property, the Hard Rock and Bally’s projects would see construction begin on new builds if they receive final approval.
Resorts World recently increased its commitment to its project, submitting a supplemental application to the board for an additional $2bn to community benefits surrounding the proposed expansion of Resorts World’s current slots-only venue at Aqueduct Racetrack.
The operator’s total investment in its casino project now stands at $7.5bn, while Bally’s is at $4bn and Hard Rock at $8bn.
Each project will be evaluated by the board on economic activity and business development (70%), local impact siting (10%), workforce enhancement (10%) and diversity framework (10%).
The board has until 1 December to make its recommendations to the New York State Gaming Commission, which will have until 31 December to issue up to three commercial casino licences, ensuring that the state collects the casino license fee(s) ahead of schedule.
Any project that is approved must pay a license fee of $500m, have a minimum capital investment of $500m and will be subject to minimum tax rates of 25% for slot machines and 10% for table games.
