New York Governor Kathy Hochul has rejected a proposed bill that aimed to expedite the licensing process for three new downstate casinos. The legislation, sponsored by State Senator Joseph Addabbo Jr. and Assembly Member Gary Pretlow, sought to establish an earlier deadline for casino bid submissions, but Hochul deemed the proposal as unfairly altering rules midway through the process.

The bill, passed by lawmakers in June 2024, would have required bidders to submit their proposals by August of this year, even if they had not yet secured necessary local approvals, such as zoning permits. Hochul, however, opted against implementing these changes, citing concerns about fairness and the impact on various applicants.

“Changing the timeline… would likely have the impact of helping certain bidders and hurting others,” Hochul stated in her veto message. She further clarified, according to City & State New York: “I cannot support a bill that aims to change the rules in the middle of the process.”

This decision aligns with the original framework agreed upon during the 2022 New York state budget negotiations. Hochul emphasized that potential applicants have been actively working to align their projects with local zoning laws, as required by the current guidelines.

Accelerated Timeline Sparks Debate

Proponents of the bill, including Senator Addabbo, argued that a faster timeline would eliminate bidders struggling with legal or land-use issues, preventing unnecessary delays. Addabbo, who chairs the Senate Committee on Racing, Gaming, and Wagering, expressed frustration over the veto, stating, “If you can’t figure out the land use issues in two years, maybe a casino shouldn’t be there.”

The bill’s intended acceleration was partly driven by the substantial financial stakes involved. Each awarded casino license is expected to bring in a minimum of $500 million, with estimates reaching up to $750 million per license. This revenue, totaling as much as $2.25 billion, is earmarked for the Metropolitan Transportation Authority (MTA).

Despite these arguments, Hochul stood firm, rejecting what she described as an attempt to modify a lengthy and ongoing proposal process. Some industry observers cited by the New York Post noted that a drawn-out timeline could benefit bidders facing local opposition or unresolved zoning challenges, such as Steve Cohen’s $8 billion casino project near CitiField in Queens or Wynn/Related Companies’ $12 billion proposal in Hudson Yards.

Implications for the Licensing Process

Under the state’s current timeline, casino bid applications are due by June 27, 2025, with the state Gaming Commission expected to finalize its decisions by December of the same year. Community Advisory Committees, comprised of elected officials from affected areas, will review and vote on submitted proposals before the Gaming Facility Location Board makes its recommendations.

Senator Addabbo highlighted the prolonged timeline, noting that it could take up to three years to construct new casinos after licenses are awarded. In contrast, existing slots parlors such as Resorts World at Aqueduct Racetrack and MGM Empire City at Yonkers Raceway could quickly expand to offer table games if granted full casino licenses.