Closer Look: How Were the New York Casinos Chosen?
Posted on: December 2, 2025, 02:25h.
Last updated on: December 2, 2025, 02:49h.
- The New York Gaming Facility Location Board says it carefully reviewed each casino bid
- The Board ultimately recommended all three qualified bids for licensure
- The Board thinks the downstate New York casino market will become one of the richest gaming industries in the country
In what was once considered the greatest gaming market opportunity since China’s Macau a quarter of a century ago, the competitive bid for the three downstate New York casino concessions turned out to be a rather ho-hum affair after the process ended with only three qualified submissions.
The five-person, unpaid New York Gaming Facility Location Board was tasked with deciding where the licenses would go. But as the casino candidates dwindled from more than a dozen to just three, the choices were largely made for them. While the state gaming statute didn’t require the Board to grant any of the three licenses, the pledged economic benefits were too great to pass up.
In a 30-page release on how the Board decided to recommend all three remaining bids for licensure, the Board said it combed through “120,000 pages of application materials” and worked with various consultants to validate each casino bid’s jobs, taxes, and economic projections.
The Board received consultant analysis and input regarding the revenue-generating capabilities of the Applicants’ proposed Gaming Facilities, as well as the Applicants’ proposed financing and capital structures, credit support, impacts, and mitigation plans. The Board considered expert analyses of revenue projections, potential cannibalization of existing gaming facilities, potential impact of competing new casinos within a single New York downstate region, and qualitative factors that might affect the attractiveness of each new commercial gaming facility, including development and operating experience and project design,” the Gaming Facility Location Board’s Selection Document detailed.
In the end, Bally’s Bronx, Metropolitan Park, and Resorts World were all referred to the New York State Gaming Commission for licensure.
Not everyone was happy. A group of New Yorkers opposed to casino gambling immediately shouted, “Shame on you!” as they exited the CUNY Graduate Center’s Proshansky Auditorium.
Board Pledges Diligence
Once the New York casino pool was trimmed to only three applicants, many believed the Gaming Facility Location Board’s job was essentially easier, as it didn’t need to decide between bids. But because the statute passed by the State Legislature mandated that only casinos that would generate a “substantial fiscal benefit” through new tax revenues, jobs, and overall economic activity should be greenlit, due process was still needed.
As a result, the Board said it went to great lengths to ensure each remaining bid would accomplish that goal.
“The Board and its advisory team conducted in-depth reviews of the Applicants’ market analyses and developed independent assessments of the regional gaming market. The process included comparative analysis of Applicant-submitted gaming revenue estimates, tax projections, and competitive impact assessments under various licensure scenarios. Applicants were required to submit initial estimates and a supplemental analysis with the current competitive landscape considered, allowing the Board’s advisors to model one-, two-, and three-casino scenarios alongside existing video lottery terminal and commercial casino facilities. The analysis considered potential cannibalization, repatriation of out-of-state gaming spend, and total gross gaming revenue to evaluate each proposal’s contribution to state and local gaming tax revenue. The results provided a robust framework for the Board to assess fiscal impacts and market sustainability across all competitive scenarios,” the Board explained.
A concern for the Bally’s scheme was the company’s ability to finance its $4 billion plan in the Bronx. The Board said it considered each applicant’s proposed debt and equity financing structures in its evaluation.
Lofty Revenue Estimates
With three casinos likely, the Gaming Facility Location Board’s advisors project that casino revenue in downstate New York will reach $5.5 billion a year come 2033, the projected market stabilization year.
If that lofty estimate comes true, the three downstate New York casinos would be almost two-thirds the size of the Las Vegas Strip gaming industry.
At $5.5 billion in in-person casino revenue, the downstate NY market would be the second-largest commercial casino market in the country behind only Las Vegas.
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