New York Lawmakers Ask Gov. to Expedite Casino Licensing After Killing Congestion Toll

Posted on: June 12, 2024, 09:06h. 

Last updated on: June 12, 2024, 09:59h.

Devin O'Connor @CasinoorgDevinO Read More
Expertise: Asia Pacific Gaming, Commercial Gaming, Legislation, Politics.

New York Gov. Kathy Hochul (D) last week turned around her support for the Metropolitan Transportation Authority’s (MTA) “congestion toll” plan that would have instituted tolls of $15 for automobiles entering Manhattan below 60th Street.

New York casino licenses MTA
New York’s plan to institute tolls into Manhattan to help fund the MTA has been shelved after several lawsuits were floated. Now, state lawmakers in Albany are turning to the three downstate casino licenses that can be issued to help fund the public transit system’s needed improvements. (Image: New York Post)

Hochul’s change of heart came after lawsuits were floated by New Jersey Gov. Phil Murphy (D) and several unions. The legal pressure worked, but the MTA is now scurrying to determine new funding pathways to bankroll the $1 billion a year that the congestion toll was expected to generate. The MTA says the money is critically needed to repair and upgrade the city’s public transit system.

Several lawmakers in Albany say the most obvious solution is to get the three downstate casino licenses issued, which are to each cost a one-time upfront fee of $500 million.

Roll the Dice

Longtime gaming ally Gary Pretlow (D-Mount Vernon), an assemblyman who co-chairs the chamber’s Racing and Wagering Committee, says the casino matter is the most reasonable backup plan to aid the MTA.

We have to bring the casino deals to fruition. The MTA needs the money,” Pretlow told the New York Post. “The governor could open the bidding process right now.”

Pretlow opposed the congestion plan. State Sen. Joe Addabbo (D-Queens), who co-chairs the Senate’s Racing, Gaming, and Wagering Committee, and recently led a bill through the State Legislature that would speed up the casino bidding process, shares Pretlow’s opinion that the casino decisions be made as quickly as possible.

We could end up getting $2.5 billion to $3 billion just from the casino licenses,” Addabbo said in suggesting that the $500 million concession fee could be further raised.

The State Legislature last week passed Senate Bill 9673, authored by Addabbo, and sent the measure to Hochul’s desk. The legislation would require casino bids to be submitted by the end of business on July 31, 2024, to the New York State Gaming Facility Location Board.

The board, should Hochul sign the statute, would then be required to “immediately commence the preliminary review of such applications.” Those preliminary reviews would decide if the bid is warranted to be delivered to its appropriate Community Advisory Committee where it would need to secure local support.

SB 9673 would then direct the Gaming Facility Location Board to review the remaining bids that gained Community Advisory Board support and met a slew of other qualifying conditions like proof of financing. The board would need to decide on the three winning bids before March 31, 2025. All winning licensing fees would need to be paid by June 30, 2025.

Bill Outlook?

With the MTA funding plan scrapped after the toll hike was killed, Hochul could be more motivated to sign the casino expedition bill.

Hochul typically has 10 days from receipt of passed legislation to sign a bill, veto it, or do nothing and allow the measure to become law without her endorsement. But because the measure was sent to her office after the legislature adjourned and is no longer in session, Hochul has 30 days to act. ?