All eyes in the real estate and gaming industries have been focused on the competition for the award of three full-service casino licenses in downstate New York. The resulting development could significantly transform the local economy and tourism sector.
Historical Legislative Barriers to Gambling in New York State
The path towards expanding legalized gaming in New York State (“NYS”) has been shaped gradually over the past half-century.[1] During most of the 20th century, the NYS Constitution banned almost all types of gambling, with the state lottery only coming into existence in 1967 and the legalization of off-track betting starting in 1970.[2] The early 2000s brought about the NYS Legislature authorizing “racinos,” which are horse tracks operating video lottery terminals.[3] The idea of a modern-day commercial casino in NYS only came about in November 2013, at which time voters passed a constitutional amendment granting up to seven full-scale casinos in the state outside of tribal lands.[4] As a result, four upstate casino licenses were awarded in 2014-2015, and a ten-year moratorium on downstate casino licenses ensued to allow the upstate operators to establish themselves prior to facing downstate competition.[5] The NYS Legislature in 2022 decided to accelerate the moratorium timeline and permitted up to three full-casino licenses in the downstate region, which includes New York City (“NYC”), Long Island, and Westchester.[6] This substantial policy change aims to stimulate NYC’s economy and will especially benefit the Metropolitan Transportation Authority (“MTA”) since much of the new revenue is to be directed towards them.[7] Through $1 million application fees, $500 million licensing fees, and a tax rate of at least 25% for slot gross gaming revenue, NYS has much economic gain to reap from the casino projects.[8]
Application Process and Timeline
As previously noted, the process for developing a casino in NYC has already been in the works for many years.[9] NYS’ January 2023 Request for Applications to Develop and Operate a Gaming Facility (“RFA”) lays out the process for the State’s review of applications, with the NYS Gaming Commission (“the Commission”) and the Gaming Facility Location Board (“the Board”) as the governmental bodies tasked with overseeing.[10]
Uniquely structured to directly incorporate key public stakeholders in the decision-making process, the initial review is completed by a local Community Advisory Committee (“CAC”), which determines the approval of individual applications.[11] The CACs for NYC-based projects are six-member groups made up of representatives of the NYS Governor, NYC Mayor, Local NYS Assemblymember, Local NYS Senator, Local Borough President, and Local NYC Council member.[12] For other downstate proposals outside of NYC, the CAC is five members, instead including appointees by the County Executive and the Local Mayor or Town Supervisor.[13] The CAC reviews all applications, holds public hearings, and then issues findings based on a two-thirds vote of committee members demonstrating public support for either denying or approving the application.[14] After a successful two-thirds vote from the CAC, applications are passed along to the Board to ensure zoning compliance.[15] The Board proceeds to review and score applications for economic activity and revenue impacts, local siting impacts, workforce enhancement, and diversity framework.[16] Lastly, the Board chooses up to three applications to advance to the Commission to make final licensing decisions.[17]
After responding to the public’s questions regarding the casino application process for over a year, and bidders presenting their proposals to community planning and zoning boards for the first half of 2025, NYS’ RFA closed on June 27, 2025.[18] From that point up until the end of September, applicants completed all land use and zoning assessments and environmental quality reviews, with the CACs’ voting deadlines for the bids set for September 30, 2025.[19] The last stretch of the casino application process includes the Board making final decisions by December 1, 2025, and the Commission then awarding up to three licenses by the end of 2025.[20]
Regulatory Process and Changes Allowing Development
In 2022, the NYS Legislature adopted a legal framework that allows for the award of up to three casino licenses in the downstate region and established the Board to manage the licensing and selection process of new commercial casinos.[21] NYC and NYS needed to work together to make changes to legislation to facilitate the construction of a casino in the downstate region.[22]
One initial issue with the construction of a casino in NYC was that “casino” and “gaming facility” were not permitted uses within the NYC Zoning Resolution (“ZR”).[23] NYS’ RFA in January 2023 required that all applicants comply with local land use regulations, so NYC needed to make changes to the ZR to ensure project application conformance.[24] As a result, the Mayor’s Office and City Council worked together to approve zoning text amendments allowing for casinos to be built in commercial or manufacturing districts.[25]
Additionally, some NYC-based applicants needed to undergo the Universal Land Use Review Procedure (“ULURP”) related to specific requirements such as mapping changes, grading, or revocable consent to construct over streets.[26] The Coney Island proposal required street de-mapping and new grades on various streets, which was approved this year.[27] The Metropolitan Park project in Queens required public parkland alienation due to its location in government park space.[28] The NYS Senate and Assembly passed a parkland alienation bill in May 2025 to permit the project’s usage of the space for private development.[29] Similarly with the Bally’s Bronx proposal, parkland alienation was required from the NYS Legislature as the casino is to be built on a city-owned golf course. City Council members originally rejected the proposed rezoning[30], but Mayor Eric Adams exercised his veto power over the decision, allowing the project to move forward.[31]
Lastly, all applicants were subject to the State and/or City Environmental Quality Review Act, which requires identification and reports on the significance of any adverse environmental impacts of proposals, as well as suggestions for mitigation of these climate impacts.[32]
Current and Former Bidding Proposals
The Commission and the Board are charged with overseeing the process for proposal solicitation, public feedback, ranking criteria, and the licensing timeline.[33]
There were initially eight proposals submitted by the application deadline of June 27, 2025, ranging in investment levels from $3.4 billion to $11.1 billion.[34] Four proposals, three of which were proposed to be built in Manhattan, were already rejected by their respective CACs.[35] These Manhattan proposals are: The Avenir Hudson Yards from Silverstein Properties, Rush Street Gaming, and Greenwood Gaming; Caesars Palace Times Square backed by SL Green, Caesars, Live Nation, and Roc Nation; and Freedom Plaza in Midtown East from the Soloviev Group and Mohegan Sun.[36] The Coney in Brooklyn’s Coney Island from Thor Equities was also recently rejected.[37]
This leaves four proposals in the running: The Bally’s Bronx Gaming Facility; MGM Empire City in Yonkers; Metropolitan Park in Willets Point, Queens, from Steve Cohen and Hard Rock; and Resorts World New York City at the Aqueduct Racetrack in Queens from the Genting Group.[38] These four have all been approved by CACs, leaving the final decision now up to the Board.[39] Notably, both MGM Empire City and Resort World New York City, which received unanimous approvals, are located at sites that are already utilized for gambling, mainly in relation to horse racing, showing the CACs’ potential desire for the least disruption to normalcy as possible.[40]
Implications of a Casino in NYC
Many proposals note the significant expected benefits to NYC of the construction of a casino, including providing permanent local jobs, creating new draws for tourism, and generating billions in tax revenue.[41] However, these benefits are not without costs, some of which include an increase in traffic and congestion in already over-crowded areas, strain on infrastructure, and the potential for social costs such as gambling addiction.[42] Overall, the construction of a casino (or three) in New York City has the potential to shake up the gaming industry and revitalize its economy, particularly by providing funding for much-needed infrastructure and transportation improvements.[43] The Commission will provide continued financial oversight to ensure that casinos comply with local and state laws and are responsible for ensuring that license applicants properly codify in contractual agreements the promises they have made regarding local hiring percentages, affordable housing, and transportation.[44] By the end of the year, New Yorkers will know the long-awaited outcome of this casino application process and will thereafter discover whether a casino in New York will prove beneficial or detrimental to the region.[45]
[1] See Press Release, Adolfo Carrión, Jr., Deputy Mayor for Housing, Economic Development, and Workforce, Casting the Dice (Sep. 19, 2025), https://www.nyc.gov/assets/home/downloads/pdf/press-releases/2025/Casting%20the%20Dice%202025_VF.pdf.
[2] Id.
[6] Id.
[7] See Carlos A. Scissura, Casino Licenses Are a Smart Bet to Save New York City’s Subways and Buses, Empire Report (Mar. 20, 2025), https://empirereportnewyork.com/casino-licenses-are-a-smart-bet-to-save-new-york-citys-subways-and-buses/#:~:text=So%20why%20leave%20money%20on,t%20have%20to%20shell%20out.
[8] See, e.g., Carrión, Jr., supra note 1; Jess Marquez, New York board finalizes license fee, capital minimum for downstate casino bids, iGaming Business (June 16, 2025), https://igamingbusiness.com/legal-compliance/licensing/new-york-casino-licence-capital-fee/#:~:text=Those%20who%20desire%20a%20downstate,the%20end%20of%20the%20year.
[9] Id.
[10] See N.Y. State Gaming Facility Location Bd., Request for Applications to Develop and Operate a Gaming Facility in New York State, (Jan. 3, 2023), https://nycasinos.ny.gov/system/files/documents/2023/01/01.03.23.rfa_.pdf.
[11] Id.
[12] See Carrión, Jr., supra note 8.
[13] Id.
[14] Id.
[15] See N.Y. State Gaming Facility Location Board., Evaluation and Selection (2025), https://nycasinos.ny.gov/evaluation-and-selection#:~:text=all%20other%20sources.-,Before%20the%20Board%20Can%20Review%20an%20Application,fee%20to%20the%20Gaming%20Commission.
[16] Id.
[17] Id.
[18] See Press Release, Adolfo Carrión, Jr., Deputy Mayor for Housing, Economic Development, and Workforce, Casting the Dice (Sep. 19, 2025), https://www.nyc.gov/assets/home/downloads/pdf/press-releases/2025/Casting%20the%20Dice%202025_VF.pdf.
[19] See Aaron Short, Here Are the Key Dates in New York’s Casino Licensing Timeline, City & State New York (Feb. 10, 2025), https://www.cityandstateny.com/policy/2025/02/here-are-key-dates-new-yorks-casino-licensing-timeline/402817/.
[20] Id.
[21] See Carrión, Jr., supra note 18.
[22] Id.
[23] See N.Y.C Planning Comm’n, Gaming Facility Text Amendment (2024), https://www.nyc.gov/assets/planning/download/pdf/about/cpc/240179.pdf.
[24] Id.
[25] Id.
[26] See Isaac Monterose, Casino Bids, Zoning Reform to Shape NYC Real Estate in 2025, Law360 Real Estate Authority (Jan. 15, 2025), https://www.law360.com/real-estate-authority/articles/2264287.
[27] Id.
[28] Id.
[29] Id.
[30] See Ed Shanahan, Bally’s Bronx Casino Plan Appears Dead After Council Rejects Rezoning, N.Y. Times (July 16, 2025), https://www.nytimes.com/2025/07/16/nyregion/ballys-casino-bronx.html.
[31] See Janaki Chadha, Adams Vetoes Council’s Rejection of Bally’s Casino Bid, Politico Pro (July 30, 2025), https://subscriber.politicopro.com/article/2025/07/adams-vetoes-councils-rejection-of-ballys-casino-bid-00484957.
[32] See N.Y. Gaming Facility Location Bd., Required Approvals – Entitlements & Community Advisory Committees, https://nycasinos.ny.gov/required-approvals-entitlements-community-advisory-committees.
[33] See Press Release, Adolfo Carrión, Jr., Deputy Mayor for Housing, Economic Development, and Workforce, Casting the Dice (Sep. 19, 2025), https://www.nyc.gov/assets/home/downloads/pdf/press-releases/2025/Casting%20the%20Dice%202025_VF.pdf
[34] Id.
[35] See Whirlwind Wednesday shakes up NYC real estate, The Real Deal (Sep. 20, 2025), https://therealdeal.com/new-york/2025/09/20/whirlwind-wednesday-highlights-wild-week-in-nyc-real-estate/
[36] See Carrión, Jr., supra note 33.
[37] See ABC 7 Eyewitness News, Casino Proposal Approved in Bronx, Rejected for Coney Island, (Sep. 29, 2025), https://abc7ny.com/post/casino-proposals-bronx-coney-island-brooklyn-set-community-advisory-committee-vote/17903099/
[38] Id.
[39] See Lauren Hartley and Katie Honan, 4 NYC Casino Plans Made It to the Final Round. What Happens Now?, The City (Oct. 9, 2025), https://www.thecity.nyc/2025/10/09/casino-license-final-decision-citi-field-resorts-world/
[40] See Matthew Haag, Yonkers and Queens Casino Bids Advance in Battle for N.Y. Licenses, N.Y. Times (Sep. 25, 2025), https://www.nytimes.com/2025/09/25/nyregion/empire-casino-yonkers-resorts-world.html.
[41] See Ry Rivard, Janaki Chadha, and Jason Beeferman, Inside the Billion–Dollar Promises Fueling NYC’s Casino Race, Politico (Sep. 21, 2025), https://www.politico.com/news/2025/09/21/casino-developers-dangle-billions-of-dollars-in-promises-for-nyc-licenses-00572102.
[42] See Press Release, Adolfo Carrión, Jr., Deputy Mayor for Housing, Economic Development, and Workforce, Casting the Dice (Sep. 19, 2025), https://www.nyc.gov/assets/home/downloads/pdf/press-releases/2025/Casting%20the%20Dice%202025_VF.pdf.
[43] Id.
[44] Id.
[45] See Bennett Liebman, The State of New York Gambling, N.Y. State Bar Ass’n (May 5, 2025), https://nysba.org/the-state-of-new-york-gambling/?srsltid=AfmBOoqspDFKpvv-DmD029ruNAhR7I6HO1AtyY31SPs9tp8_Gn2dfFHD.
