New York Casinos Race Nears Its Final Act

New York is closing in on a decision that could redefine its gambling landscape for decades. By the end of this year, state regulators are expected to award up to three full-scale casino licenses for the downstate region, including New York City, Long Island, and parts of the surrounding suburbs. The outcome could deliver billions in private investment, reshape neighborhoods, and determine which communities benefit most from an industry long confined to racetracks and tribal territories.

But as the process heads into its final stretch, it’s clear that the path has been anything but smooth. Community opposition, corporate withdrawals, and shifting state conditions have all complicated what was initially billed as a straightforward expansion of gaming in America’s largest city.

A Complex and Contentious Process

The downstate casino program was authorized by lawmakers several years ago as part of a broader effort to boost tax revenue and job creation after the pandemic. The plan called for three commercial licenses to be issued by the New York State Gaming Facility Location Board (GFLB), which will then make recommendations to the State Gaming Commission.

Applicants must clear a series of hurdles before even being considered. Each proposal is first reviewed by a Community Advisory Committee (CAC), a panel of local representatives tasked with gauging neighborhood sentiment. A negative vote from the CAC effectively kills a bid. Even projects that survive community review face additional zoning, environmental, and financing scrutiny.

Despite the slow pace, the stakes remain enormous. Each license carries a minimum $500 million fee, plus at least another $500 million in required investment. State officials say the potential long-term tax benefits could reach into the billions, not to mention thousands of construction and hospitality jobs.

The Field Narrows

The process began with no shortage of ambition. More than a dozen potential sites were floated, from Manhattan skyscrapers and Queens racetracks to Long Island resorts. Over time, reality set in. Local pushback, financial concerns, and political obstacles whittled the list down to a handful of serious contenders.

The most dramatic shake-up came earlier this month, when MGM Resorts International abruptly withdrew its $2.3 billion proposal to convert its Empire City property in Yonkers into a full-scale casino. The company cited revised financial projections and new regulatory constraints, particularly the shortened 15-year license term that replaced an anticipated 30-year window. 

MGM’s exit stunned observers, as Empire City was considered one of the frontrunners due to its existing infrastructure and track record in gaming operations.

That withdrawal left just three bidders competing for three potential licenses, a scenario that upends the state’s goal of fostering competition. Resorts World in Queens, Bally’s in the Bronx, and the Metropolitan Park project near Citi Field remain in contention. 

Each represents a distinct vision of what the next generation of New York casinos could look like: Resorts World expanding its existing racino at Aqueduct, Bally’s redeveloping the former Trump Golf Links at Ferry Point, and Hard Rock International teaming with Mets owner Steve Cohen on an entertainment district beside the ballpark.

Manhattan’s Missed Opportunity

Perhaps the biggest surprise of the year has been Manhattan’s exclusion from the race. Early on, industry watchers expected at least one license to land in the heart of the city, where global tourism and high foot traffic seemed like obvious advantages. But three separate bids, including SL Green’s $5.4 billion Times Square proposal with Caesars Entertainment and Jay-Z’s Roc Nation, failed to win over community panels.

Opposition from local officials, Broadway representatives, and neighborhood coalitions proved decisive. Critics warned that a casino in Times Square would increase congestion, threaten the theater district, and alter the neighborhood’s cultural identity. Other proposals, like Freedom Plaza near the United Nations and The Avenir in Hell’s Kitchen, met similar fates. With all three voted down by their respective CACs, Manhattan was effectively removed from contention.

The decision left some economic development advocates frustrated. A state-commissioned study in 2021 had concluded that at least one Manhattan casino would maximize potential tax revenue. Still, the rejection underscored the challenge of placing large-scale gaming operations in densely populated areas already struggling with tourism recovery and urban livability concerns.

Billions on the Table

While the bids vary in scale and design, all share one common denominator: massive investment. Each casino proposal involves not only gaming floors but hotels, event spaces, and restaurants aimed at turning the venues into full entertainment destinations. Developers argue that such projects will bring thousands of union jobs and boost tourism, while also revitalizing underused properties.

Supporters within state government see casino expansion as a pragmatic way to increase revenue without raising taxes. Yet critics question whether the economic projections hold up once social costs and infrastructure pressures are factored in. The New York market is already crowded with horse racing venues that offer electronic gaming machines, neighboring state casinos, and an expanding base of NY online casinos that continue to attract local players. 

These concerns became more tangible after MGM decided to withdraw its Yonkers proposal, a move that reflects how uncertain terms and high costs can make even flagship projects financially risky.

What Comes Next

The Gaming Facility Location Board is expected to deliver its recommendations by December 1, though few expect the process to move quickly. Even after winners are announced, licensing could be delayed by appeals, zoning disputes, and environmental reviews. That means it could take years before shovels hit the ground, and longer still before the first blackjack tables open.

If regulators decide to award fewer than three licenses, the state could reopen bidding to maintain competition. Some industry insiders believe that scenario could revive interest in Manhattan, particularly if future rounds allow developers to rework their proposals in response to earlier criticism.

For now, though, the focus remains on Queens and the Bronx, where the remaining applicants are fine-tuning their pitches. These projects will shape not only the physical landscape but also the financial and cultural character of New York’s casino era.