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Pretlow Says It’s Time for New York to Realize Casino Revenue Benefits

New York Assemblyman Gary Pretlow (D-Mount Vernon) believes it’s time for the state to put the pedal to the metal when it comes to realizing benefits from casino gaming in the New York City area.

Two years have passed since New York voters were led to believe that the approval process for three downstate casino permits would proceed quickly. However, the reality is far different, and it now looks as though decisions regarding which companies will be awarded the coveted licenses may not be made until late 2025 or early 2026.

Pretlow and Sen. Joseph Addabbo (D-Queens) last week filed legislation that, if approved, would require the granting of those permits, possibly as soon as March 31, 2025, in an effort to prevent more expensive delays. Pretlow sees it as a chance to support communities of color.

"We must get this done because New Yorkers are counting on much more than blackjack or roulette tables,” he wrote in an op-ed for the Yonkers Times. “Black and Brown families are leaving the downstate region in droves because few career opportunities exist. School administrators barely scrape by on shoestring budgets. Commuters inch forward on long commutes marred by aging infrastructure.”

There was hope among lobbyists and observers of the gambling industry that the New York casino licenses would be awarded this year. Still, other experts warned that it would probably be a problem in 2025, noting among other things bureaucratic delays.

It's Time for New York Casinos to "Start Flipping Cards."

Pretlow noted in his op-ed that New York is experiencing a $9.5 billion budget deficit, and that the $500 million licensing fee for each winning bidder, or a total of $1.5 billion, would significantly help close that gap.

Due to the state's financial difficulties, some industry observers have previously warned that it's likely the licensing cost might rise to $1 billion each permit, with gaming corporations being forced to pay because of the New York market's high demand. In any case, Pretlow says it's time for the state to start taking advantage of the downstate casino industry.

“But first we need to actually start flipping cards. New York State committed to speeding up the process as part of the budget two years ago. The intent was for bidding to start in 2023, but the goal posts continue to move,” added the lawmaker. “The Gaming Commission’s announcement this spring to push back license awards until the end of 2025. That means the tens of thousands of construction and permanent jobs promised by every bidder will not materialize for another two years — at best.”

It goes beyond just license costs. Casinos in the New York City region have the potential to bring in billions of dollars for the state in sales and income taxes, among other levies.

Time Is Everything

There are seven working days remaining in the state's 2024 legislative session, so time is of the importance even though the proposals put up by Addabbo and Pretlow may help speed up the New York casino process.

It is likely that Gov. Kathy Hochul (D) will sign the legislation into law if it passes the state assembly and senate. Should that occur, it would pave the way for the issue around the New York casinos to become clear as early as the first quarter of 2025.

Gaming businesses and real estate partners would have up to two years to deal with property and environmental challenges if that came to pass.