New York State Approves Fee and Investment Rules for Casino Licences

New York’s effort to award three downstate casino licences is now moving forward with key terms confirmed. The Gaming Facility Location Board settled on financial requirements for applicants, bringing the bidding process closer to its next stage.

Good to know

• Casino applicants must commit at least $500 million in both licensing fees and capital investment.
• All entitlement approvals, including zoning, must be completed by 30 September.
• Final licence selections are expected by December.

With the deadline for bid submissions set for 27 June, casino hopefuls must finalize key approvals quickly. Some projects, such as Bally’s plan for the Bronx, have already secured rezoning approval from the New York City Council and state Legislature. Other proposals, including Thor Equities’ project on Coney Island, still await critical votes. Manhattan-based casino plans are undergoing environmental reviews.

Zoning issues are under particular pressure this month, with many communities facing short windows to act. If zoning or environmental processes are incomplete by 30 September, bids will be disqualified.

After applications are submitted, each will be paired with a Community Advisory Committee (CAC). These committees are tasked with assessing public feedback and issuing a binding vote. To advance, a proposal must receive at least two-thirds approval from its CAC.

CAC membership depends on the project’s location. Proposals inside New York City will be reviewed by committees including Governor Kathy Hochul, Mayor Eric Adams, the relevant borough president, city council member, and state legislators. For projects outside the city—like MGM Empire City’s Yonkers plan—committees will include the governor, county executive, and other local leaders based on the area’s governing structure.

Applicants must also propose tax rates

Besides the application fee and approvals, bidders are expected to propose a tax rate on gross gaming revenue. The minimums are 25% for slot revenue and 10% for all other revenue. The Facility Location Board will weigh these proposals during review.

Once a CAC approves a project and materials are submitted, the board will evaluate each bid across four areas: economic development (70%), local impact siting (10%), workforce plans (10%), and diversity strategies (10%). After the board selects its preferred projects, the commission will make the final decision.

While three licences are on the table, the commission is not required to award all of them. It may choose to approve fewer—or none—depending on the outcome of the full review.

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