MGM and Resorts World Gain Preliminary Approval for Downstate NYC Casinos

Resorts World NYC has the backing it needs from the Queens Community Advisory Committee, and looks set to snap up one of the three downstate commercial licenses up for grabs. Another tender, by MGM, was approved earlier on the same day. And so it leaves 1 last casino license for NYC.

New York’s casino industry has been the talk of the town in the iGaming industry for the past few days, with greater media attention pouring in following the endorsements from Jay-Z and Nas. Many big players have entered the race, with MGM, Hard Rock, Bally’s and Caesars all vying for a downstate commercial casino license. Resorts World and MGM are on the right path, but not out of the woods just yet.

Having CAC approval, they now take their proposals to the Gaming Facility Location Board (GFLB), but there are no guarantees until the December 1 deadline. Or the December 31 deadline for the New York State Gaming Commission (NYSGC), which will be responsible for ultimately issuing the casino licenses.

NY Downstate Casino Licenses As They Stand

Resorts World got the go ahead after the committee in Queens approved the proposal with a unanimous 6-0 vote. All six representatives, including State Senator James Sanders JR, and the Borough President Donovan Richards, decided Resorts World’s approval fit the bill. MGM Empire (Yonkers Casino) was approved on the same day, meaning they too can proceed with the developments. Next, the companies must pay the $1 million application fee and submit their proposals to the GFLB. Like the CAC, GFLB is an independent board that has no affiliations to the industry.

Resorts World and MGM have to negotiate their own tax rate, talk about employment benefits in the area, and map out their proposed plans. The GFLB has until the 1st of December to make its reviews, and then it has to pass on the licensure recommendations to the New York State Gaming Commission. The Commission has until the end of the year to issue up to 3 downstate commercial licenses.

Which Companies Are Vying for NYC Casino Licenses

Competition for these licenses is high, and just last week 2 proposals were shot down in one day. Each of the contenders had to propose a site, showcase its vision, and create a plan on how the project would benefit locals. The proposals that popped up varied greatly, from those that recommended renovating existing racinos, to ambitious plans that wanted to see hotel towers, public amenities and even golf courses. Among them, the most viable options were the following:

• Resorts World (approved): Backed by Genting, NYRA, and existing NY racinos, the idea was to expand on the current racino to create a full casino resort
• MGM Empire City (approved): Converting the existing racino to a full casino, the CAC gave its approval for the bid to advance
• Freedom Plaza – Backed by Mohegan and Soloviev Group. The goal was to build near the UN headquarters in Manhattan and to create a large mixed use project. It was shut down by the CAC, partly due to large public backlash
• Bally’s Bronx: Bally wanted to develop a casino at the site of the Bronx Golf Center. It was intended to create jobs and expand on the facilities, but was rejected over local opposition and concerns of traffic congestion
• The Coney: Backed by tribal companies and conglomerates, this was an ambitious pitch to make a big casino resort on Coney Island. The proposal was met with lots of resistance from locals
• Caesars Times Square: Caesars partnered up with SL Green and Jay-Z’s Roc Nation, proposing a casino in the heart of Times Square. A bold proposal, the goal was to boost tourism and integrate Broadway entertainment. While it has not been completely ruled out, this was the proposal that met with the fiercest opposition
• Avenir: A joint venture by Related Companies and Wynn Resorts, the plan was to make a casino complex at Hudson Yards on Manhattan’s West Side. This was also shot down by the CAC over congestion concerns

The two approved proposals, both of which feature extensions on existing racinos, are by far the least risky. After all, MGM and Genting Group both have strong reputations, and better yet, a foothold in the state of New York. While the racinos offer a limited selection of slots and electronic games and horse race betting products, they are the more feasible option for lawmakers to consider. With approval, the racinos can add table games and other casino gaming experiences to their roster.

Jay-Z & Caesars’ Times Square Casino Vision

Caesars’ Times Square casino plan is definitely the most eye catching and bold of all the submitted tenders. And it is also the most divisive. The backers are working relentlessly to try to make the vision a reality, and with MGM and Genting Group seemingly scooping up 2 of the 3 casino licenses, the competition is very tight.

But what would the proposal entail? Jay-Z talked about an opportunity to create a destination right in the heart of Times Square. Roc Nation is using it as a stage to unify local organizations, Broadway, and big name entertainment providers such as Sony Hall, Town Hall and Live Nation. In fact, on the project’s website, it displays that there are over 200 backers of the Times Square Caesars Palace. Backing by local businesses and affiliated brands, however, is not enough to sway local lawmakers.

The proposal is to build on land that isn’t intended for housing purposes, and to support 160+ local restaurants and bars. The latter would be done through making affiliations with the Caesars Rewards program. Yet Caesar’s project is up in the air for the time being, and time is running short for the Jay-Z, Caesars and SL Green to come up with something.

To rub salt in the wound, Jay-Z’s longtime rap rival, Nas, backed the Resorts World project, which got greenlighted last week. Media outlets, naturally, have dubbed this the extension of the 2000s rap beef – having now transitioned into a full on NYC Casino Race war.

NY Casino Laws and Existing Casinos

For the residents of New York, it is a pretty touchy subject, as right now there are no downstate commercial casinos. There are only 4 commercial casinos in operation:

• Del Lago Resort and Casino (Seneca County)
• Resorts World Catskills (Sullivan County)
• Rivers Casino & Resort at Mohawk Harbor (Schenectady County)
• Tioga Downs Casino, Racing & Entertainment (Tioga County)

Outside these, there are plenty of tribal casinos and racinos, but the excitement around a commercial casino downstate is growing. The New York State Gaming Commission, through the Gaming Facility Location Board, oversees the licensing process. The rules regarding gambling and gaming products revolve around transparency, responsible gambling initiatives, public benefit, and fair competition.

Operators must pay a $1 million application fee, outline tax agreements, and commit to labor and community development in their proposals. The process is deliberately designed to ensure that winning bids don’t just build casinos, but also deliver tangible economic and social benefits to New Yorkers.

What to Expect Going Forward

Until December 31, we won’t know for sure whether or not these approvals and tenders will amount to anything. The NY State Gaming Commission can issue up to 3 commercial landbased casino licenses, but it does not need to dish out all three come the end of 2025. There are serious decisions and negotiations set to take place in the coming weeks, as the Commission needs to weigh the pros and cons, and find a solution that will ultimately sit in one of the largest untapped US landbased markets.

New York may build 20+ megaresorts to compete with Vegas’ gambling haven. But in terms of tourism and the diversity of visitors, industry insiders are secretly talking about New York’s potential to rival Las Vegas in annual gaming revenue. The lucky operators who can break into the downstate market will benefit from immense brand recognition, as well as a massive visitor turnover. MGM and Genting Group are set to rise. As for Caesars, Bally’s, Hard Rock, and Las Vegas Sands (who pulled out with their Long Island proposal, but never say never in this business), that third license looks like a winning lottery ticket.

If anything is to come of these negotiations and further approvals, we may even see new casino venues open their doors in early 2026. The developments that repurpose the existing racinos that is. As for integrated casino resorts in NYC, it may still be a possibility, if an ever fading one, but Times Square seems to have a massive commercial and media backing. The question is, can Caesars come up with the right solution in time? Or, will it be beaten by Bally’s or Hard Rock? Or, will we only get 2 commercial casinos in NYC?