New York Opens Bidding for Downstate Casino Licenses

The race for downstate casino licenses in New York has officially started. The state’s Gaming Facility Location Board has set the bar high. Interested operators must pay a $500 million license fee and invest another $500 million into their projects. That’s a $1 billion commitment before a single game is played.

Bids are due by June 27, and approvals are expected by December 1. But the financial requirement is just the beginning. Developers must also meet zoning and environmental standards before September 30 — or their bid won’t move forward.

Zoning, Approvals, and Community Power

To qualify, proposals must clear all land-use hurdles. These include zoning, environmental, and municipal approvals. For many, this will be the biggest challenge. While Bally’s Bronx project has advanced with City Council approval, other proposals still face delays.

Each casino plan must also win support from a Community Advisory Committee (CAC). These groups hold real power. If two-thirds of the CAC vote no, the project dies. In New York City, members include Governor Kathy Hochul, Mayor Eric Adams, and local elected officials. Outside NYC, county and town leaders will help decide the outcome.

All community votes must be completed by September 30. Only then can applicants pay the $1 million application fee to enter the final review phase.

Tax Incentives and Strategic Proposals

To strengthen their bids, applicants may offer higher tax rates than the state minimums — 25% on slots and 10% on table games. These offers can tip the scale, as the Gaming Commission will consider them during evaluation.

The scoring breakdown favors economic development (70%), with smaller shares for local impact (10%), workforce plans (10%), and diversity efforts (10%). Even after board approval, the Gaming Commission has final say and may issue fewer than three licenses if proposals fall short.

Existing Racinos Have the Upper Hand

Two venues — Empire City (Yonkers) and Resorts World NYC (Queens) — already run video lottery terminals. Their infrastructure is ready, giving them a serious edge. Both could launch full casinos quickly and generate $1 billion in license fees fast, which appeals to state officials.

For new contenders, the timeline is tighter and the costs steeper. Even a $500 million investment may fall short of building a premium resort from scratch. And without a guaranteed launch date, financial planning becomes riskier.

Long-term outlooks remain unclear. Online casino gaming is still banned in New York, but many expect this to change. That could impact physical venues, especially as digital options grow in nearby New Jersey. Already, some big names like Wynn and Las Vegas Sands have exited the race.

As the clock ticks, applicants must bring more than money. Political alignment, public support, and precise timing will decide who secures one of the most valuable casino licenses in the U.S.