Governor Kathy Hochul Vetoes Bill to Accelerate Downstate New York Casino Licensing Process

_{Kathy Hochul says no to three downstate casinos. (Image: ZUMA Press, Inc. / Alamy)}

New York Governor Kathy Hochul issued a veto on a bill that would have accelerated the timeline for proposals vying for three downstate casino destinations licenses, saying that the move would have compromised the fairness of the bidding process.

New York legislature passed a law in June that would have required bidders to submit their proposals by August 2024, even if they hadn’t yet been able to deal with local zoning issues or other approvals.

Governor Sat on Bill as Deadlines Passed

Hochul announced the veto alongside those for other outstanding bills from the 2024 legislative session on Monday. However, the governor had effectively killed the legislation via a pocket veto – a term used when an executive chooses not to sign a bill rather than outright vetoing it – once the legislation’s deadline for casino proposals had already passed.

Hochul pointing out the ongoing nature of the process in her veto message.

“Changing the timeline…would likely have the impact of helping certain bidders and hurting others,” Hochul said. “I cannot support a bill that aims to change the rules in the middle of the process.”

Governor Hochul also pointed out that potential applicants had been acting under the rules of the process set by lawmakers as a part of the 2022 state budget.

“As part of the process, applicants are required to work with local governments so that their projects fall within the respective zoning laws of the municipalities,” Hochul said. “Potential applicants have been continuously working toward ensuring that their projects are compliant.”

Slower Timeline Keeps New York Casino Race Wide Open

Had the new deadline come into effect, it likely would have benefitted those projects that are shovel ready – namely, MGM Empire City at Yonkers Raceway and Resorts World NYC at Aqueduct Raceway, both of which are already in operation at slots parlors. 

It’s not surprising, then, that State Senator Joe Addabbo (D-Queens) was one of the sponsors of the bill, along with Assemblyman Gary Pretlow (D-Mount Vernon). 

Addabbo, who also chairs the Senate Committee on Racing, Gaming, and Wagering, criticized Hochul for claiming the bill changed the licensing process, as she paused a $15 toll for vehicles entering Midtown Manhattan over the summer, only to proposed it again earlier this month as a $9 toll.

“I was trying to improve the process,” Addabbo said, via The New York Post. “If you can’t figure out the land use issues in two years, maybe a casino shouldn’t be there.”

There are a handful of notable projects that are facing land use issues and are happy to have more time to solve them. 

_{Steve Cohen is looking to build a casino next to Citi Field. (Image: SOPA Images Limited / Alamy)}

New York Mets owner Steve Cohen wants to build a casino next to Citi Field, but has so far been stymied in his efforts to get a parkland alienation bill passed in the state legislature, a necessary step to develop the land. 

Wynn and the Related Companies are attempting to build a $12 billion casino complex in Hudson Yards, and are also facing local resistance based on how the construction would impact the existing High Line park trail.

Under the current timeline set by the Gaming Facility Location Board, applications for the three downstate casino licenses are due on June 27, 2025. The New York Gaming Commission will then make the final call on which proposals will receive those licenses near the end of 2025.