New York Senator Advocates for Rapid Issuance of Casino Licenses

The head of the New York Senate committee overseeing gambling said a state gaming board should move quickly to award casino licenses after MGM Resorts International abruptly dropped out of the contest this week.

The process of awarding licenses for the New York City area is now in the hands of the five-member Gaming Facility Location Board, which is expected to announce the winners by Dec. 1. Genting Group’s Resorts World, Bally’s Corp. and Mets owner Steve Cohen, in collaboration with Hard Rock International, are the remaining bidders for three potential licenses.

Waiting any longer would delay the creation of construction and permanent resort jobs, as well money for public transportation that would come from license fees, Joseph P. Addabbo Jr., chairman of the Senate’s racing, gaming and wagering committee, said in an interview.

“I don’t see why the state wouldn’t award the last three licenses to the last three applicants,” said Addabbo, a Democrat.

Addabbo supported the 2013 referendum that allowed for seven non-tribal casinos in the state and sponsored 2023 legislation that sped up the process. Like many backers of legalized betting, he was shocked by MGM’s withdrawal.

“They were perceived always as a frontrunner,” he said.

MGM cited proposed changes to the state’s terms that would have reduced its license period to 15 years from 30 years. That could have meant the company would have pay renewal fees down the road. The state set the minimum fee for the initial license at $500 million.

The withdrawal by MGM leaves three probable locations: The Genting and Hard Rock projects are in Queens, while Bally’s is in the Bronx.

Las Vegas Sands Corp. and Wynn Resorts Ltd. dropped out of the bidding earlier this year. Four other projects, including three in Manhattan, were eliminated during a local vetting process.

MGM, which planned a $2.3 billion expansion of its existing slot-machine parlor at Yonkers Raceway, said having casinos so close together reduced the projected returns on its investment.