Plans to Fast-Track Downstate NY Casino Licenses Approved

By Jerry Smith Staff Writer Updated: 04/30/2022

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Jerry’s greatest advantage is his extensive experience on the casino floor. His time as a casino manager taught him everything about what makes a player tick. Besides being a skilled poker player, he has deep knowledge of all live table games and gambling regulations in the US.

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Fast-Track Downstate NY Casino Licenses

Lawmakers in the state of New York have approved plans to fast-track issuing three new licenses for commercial casinos, all of which will be constructed in the downstate area. This move will kickstart a large change to the geography of casinos in the Empire State, which are currently focused on the upstate region.

Those looking to purchase a license will find that they don’t come cheap. Each casino license has a minimum fee of $500 million and the plan has already been included within the state budget, which was signed off a couple of weeks ago. This comes over a decade after authorization was given for the creation of seven commercial casinos in the state, of which four were upstate.

In terms of ongoing costs, local zoning laws will apply and there will be a 25 percent tax rate on slots and a 10 percent tax rate on table games. What’s more, there will be an annual charge of $750 per slot machine, with the proceeds going towards gambling addiction education and rehabilitation.

Despite the considerable fees, casinos should still be able to make money once they open, as the New York, Long Island and Hudson Valley area is home to around 13 million people. The fact that those in the area have taken to mobile betting so quickly shows that there is an appetite for gambling in Downstate New York.

Senator Cites Additional Revenue as Primary Driver

Senator Joseph Addabbo Jr. has always been a vocal proponent of enhancing gambling opportunities in the state of New York and was the main force behind the introduction of mobile sports betting in the state. He chairs the Senate Racing, Gaming and Wagering Committee and states that the casinos will generate significant additional revenue for the state, plus will lead to the creation of thousands of new job opportunities.

However, he realizes that there’s much work to do, stating:

While this is a nice step forward for New York State, this does not mean our work is done. In fact, our work is just beginning. Following the budget, the legislature must monitor the timely, fair and transparent bidding process for the licenses.

He also stated that the committee will have to make sure the “citing process is being credibly implemented.”

There are already guidelines for the bidding process to follow, outlined in Senate Bill 8009. This states that all candidates for a license must provide maximum capital investment and also maximize revenue and job opportunities.

Downstate New York Casino Locations

Downstate New York encompasses the whole of New York City, as well as Long Island and three counties to the north of New York. As yet, there has been no concrete decision made on where the casinos would be located, although a popular suggestion is that one would be in Manhattan, with the other two being built in Yonkers and Queens.

Before any proposals are accepted, they must first go through a public hearing, plus a panel must approve a casino siting plan, before the proposal is sent for consideration by a state body.