STATESIDE
REST WELL, ERNIE.
Looking ahead, New York faces a potentially chaotic future. As the battle for three metro New York City casino licenses heated up, MGM unexpectedly pulled its $2.3 billion application for a Yonkers license. Despite its signifi cant existing fi nancial commitment to its Empire City VLT site, and being considered a prominent contender for one of the three, MGM deemed it preferable to cut its losses and drop out. Why? Company offi cials claim the damage from “shifting expectations” superseded its early Return on Investment (ROI) predictions. There are two key reasons. First, competition from three remaining bids covered a small geographic area. Second, and perhaps the most telling, was the announcement of new guidelines that slash the license’s term in half-from 30 years to 15-while retaining New York state’s exorbitant $500 million minimum license fee.
New York’s 2013 law permits licensing terms from 10 and 30 years, based on the applicant’s capital investment, potential community benefi ts and environmental impact.
What kind of criteria is that? Does that mean only the wealthier operators with longer terms have a fi ghting chance to recoup their investments? What happens if unforeseen circumstances change a company’s fortunes?
Potential operators may reconsider their fi nal offers. I know I would. It almost sounds like the elite have a pre-determined edge. Was this truly an economic decision or was political intrigue involved? As usual, there is a convoluted backstory.
HERE IS THE STORY.
The MGM Yonkers Empire Casino was among four remaining approved bids, with expectations the New York State Gaming Commission will soon announce the winners.
In Queens, Resorts World offered a $5.5 billion redevelopment project to create a full-scale integrated resort. The company would pay an exorbitant 56 percent for slots/30 percent for table games and a $600 million license fee. To up the ante, partners New York Mets baseball owner Steve Cohen and Hard Rock promised an $8
possible Trump administration political infl uence. In 2023, Bally’s bought the Trump Organization’s fi nal Bronx golf course lease. A clause promised another $115 million if awarded a gaming license. Trump, a private citizen in 2023, The Trump Organization and New York Governor Kathy Hochul deny wrongdoing.
New York City and state currently face enough problems. Taxpayers are leaving in droves for affordable, low-tax states like Florida or Texas. Plus, New York City’s mayoral election polls currently show self-declared Democratic socialist Zohran Mamdani, 33, winning the November race. He promises rent freezes, higher corporate taxes and free stuff. Wall Street is reeling. University of Texas at Austin’s Civitas Institute Research Fellow Michael Toth claims a Mamdani win would mean a “stampede” of businesses out of New York City. He said, “…a far-left socialist mayor who’s trying to take control of the epicentre of global fi nance. It’s like oil and water.” We will know soon. Whatever happens, I know one thing… I’m glad I don’t live in New York.
billion “Metropolitan Park” project next to Citi Field, also in Queens.
Bally’s proposed $4 billion casino resort near its Bronx golf course envisions a regional attraction. Yonkers Mayor Mike Spano, calling it a betrayal, wants to investigate suspicious timing and
Sharon Harris
Sharon has worked in the casino and coin- operated amusement industries since the 1980s. In the early 1990s, Sharon transferred her public relations and journalism skills to the gaming industry. She wrote her fi rst feature for Casino International predecessor EUROSLOT magazine in 1994.
As Associate Editor, North America for Casino International, Sharon has chronicled the explosive growth of U.S. gaming and reported on its most signifi cant changes. She has traveled across America to participate in dozens of industry events and has interviewed
hundreds of gaming operators,
executives and suppliers.
BMM qp strip CI
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