By Damian Martinez, journalist at G&M News.
New York’s regulated iGaming market officially opened on January 10, 2022. Since then, it has experienced remarkable growth, becoming the largest market in the United States. In December 2023, the territory set a new state revenue record, generating an impressive 188.3 million dollars in online sports betting revenue. This surpassed the previous New York record of 166.3 million, set just two months earlier in October 2023.
After making such strides in the online gaming world now the eyes are set again in the traditional casino business. For years, operators and developers have been eyeing the prospect of establishing a casino in New York City—a tantalizing opportunity in one of the last major untapped gambling markets in the United States. Now, that dream may soon become a reality. Elected officials in Albany authorized up to three casino licenses for downstate New York, encompassing not only the city itself but also Long Island and Westchester County.
New York voters initially approved the legalization of Las Vegas-style casinos in the state back in 2013. At that time, then-Governor Andrew Cuomo and the state legislature authorized four casinos to open in upstate New York. These upstate casinos were given several years to establish their businesses before having to compete with any potential casinos in the New York City area.
Given the immense economic potential and global allure of New York City, the process of awarding these downstate casino licenses will be meticulous and thorough. The application process will be overseen by the state’s Gaming Facility Location Board, which recently appointed three members.
After reviewing the applications, the board will make recommendations to the state’s Gaming Commission, which will ultimately decide which licenses to award. However, the commission has stated that it will not overrule the location board unless there are concerns about the fitness and character of the applicants.
The process is designed so that strong community opposition can halt a casino bid even before state regulators review the application. Each application will have a local Community Advisory Committee formed to hold public hearings and assess the level of community support for the proposed casino.
As the bidding process unfolds, casino operators and real estate developers are preparing their official proposals. The allure of New York City, combined with the potential economic impact, makes this a high-stakes gamble for all involved.
The state regulator confirmed that the lengthy approval process and environmental considerations for the three licenses which have attracted submissions from MGM Resorts, Wynn Resorts, Las Vegas Sands and Caesars Entertainment as well as the two current racino operators won’t be concluded until late 2025.
Economic implications
The establishment of three downstate casinos in New York carries significant economic implications for the state and local communities. The construction, operation, and maintenance of these casinos will generate a substantial number of jobs. From dealers and waitstaff to security personnel and administrative staff, the employment opportunities will span various sectors. Additionally, the ripple effect extends to suppliers, vendors, and service providers associated with the casinos.
Moreover, casinos contribute significantly to state and local tax revenues. Licensing fees, property taxes, and gaming taxes all contribute to government coffers. The influx of revenue can support public services, infrastructure projects, and education. On the other hand, New York City is a global tourist destination. The addition of casinos will attract both domestic and international visitors, leading to increased tourism spending. Tourists who come for the casinos are likely to explore other attractions, dine at local restaurants, and stay in nearby hotels.
Implications for existing gambling establishments
The addition of new casinos in the downstate region—particularly in New York City—will intensify competition. Existing casinos, especially those in proximity to the newly licensed ones, will face heightened pressure to attract and retain customers. They may need to enhance their offerings, improve amenities, and adjust marketing strategies to stay competitive.
As downstate casinos open, some patrons who previously traveled upstate or to neighboring states for gambling may now opt for more convenient local options. This shift could impact the revenue streams of existing establishments, especially if they rely heavily on out-of-town visitors.
To remain competitive, existing casinos may need to invest in renovations, expansions, or facility upgrades. They might revamp their gaming floors, add new restaurants, or enhance entertainment offerings to retain their customer base. Some existing casinos may explore partnerships with the newly licensed downstate casinos. Collaborations could involve joint marketing efforts, loyalty programs, or cross-promotions to attract a broader audience.