New York Casino Process, Largely a Flop, Mimics Japan’s Unsuccessful IR Rollout
Posted on: October 16, 2025, 09:09h.
Last updated on: October 16, 2025, 09:46h.
- New York’s casino licensing process has largely been a bust
- The state’s tediously slow process curbed enthusiasm among major players, including Sands, Wynn, and MGM
Downstate New York was once viewed as the most coveted untapped casino market in the United States — perhaps the world. But as the process to award the three licenses earmarked for New York City, Long Island, or Westchester County moved sluggishly, and economic and operating climate conditions deteriorated, at least in the eyes of some licensee hopefuls. State officials now have only three bids to consider — and there are growing concerns another bidder might bail out.
New York’s 2013 gaming bill authorized up to four casinos upstate and three downstate. The statute provided the upstate casinos with a 10-year exclusivity on downstate competition.
The moratorium on the downstate slots and table-game concessions lifted in February 2023. Almost 1,000 days later, the New York City region licenses remain unawarded.
The state dragging its feet, along with other factors such as local pushback, the state’s consideration of iGaming, and 15 instead of 30-year licenses, has resulted in many casinos losing interest.
Japan Clone?
New York’s casino licensing process has a similar feel to Japan, where the country’s lawmakers in 2018 voted to authorize up to three integrated resort (IR) casinos.
Once considered the greatest opportunity since China opened up its casino market in Macau in 1999, Japan’s slow rulemaking and bidding progression resulted in all but MGM Resorts and Casinos Austria abandoning their plans. Japan ultimately only greenlit the MGM Osaka bid, leaving two casino permits unissued.
As was the case in Japan, Las Vegas Sands (Long Island) was the first to exit in New York. Wynn Resorts (Hudson Yards West), which prepped bids in Japan and NYC, also withdrew its bids before the bidding officially opened.
New York State Sen. Joseph Addabbo (D-Queens) was among the state lawmakers who voted in favor of the 2013 casino bill. Addabbo, who chairs the New York State Senate Committee on Racing, Gaming, and Wagering, says the state needs to act fast after MGM abruptly pulled its Empire City Casino bid in Yonkers on Tuesday.
MGM’s exit left only Resorts World’s project at the Queens Aqueduct Racetrack, Hard Rock and Steve Cohen’s bid at Willets Point, and Bally’s Bronx.
Addabbo tells Bloomberg that the New York Gaming Facility Location Board should move as quickly as possible to award the three licenses to the remaining bidders to ensure that the state receives its full benefit of authorizing casinos in the first place — substantial tax revenue, job creation, and regional economic activity.
I don’t see why the state wouldn’t award the last three licenses to the last three applicants,” said Addabbo.
RW has long been perceived as a front-runner for one of the licenses due to its longstanding commitment in Queens with its video lottery Resorts World NYC racino. MGM was also a frontrunner, and its withdrawal has some concerned that the exit will prompt Genting, the owner and operator of RW, to also study whether its $7.5 billion investment would be a sound financial move.
MGM Departure a Net Positive
Barry Jonas at Truist Securities said in a note reacting to the MGM Yonkers news that the company’s decision is likely good for investors. Jonas said there were concerns about a “winner’s curse,” as Empire City is significantly farther from Midtown Manhattan than the three other remaining bids and therefore could hurt its competitiveness.
We see this as a positive for MGM, which now frees up capital for potentially better uses,” Jonas wrote.
Jonas also questioned whether “all, some, or none of the remaining three applications will be awarded.”
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