Gaming Board Sets $500M Minimum for NYC Casino Bids

The ante has been set for the biggest real estate poker game in NYC this year: the New York Gaming Facility Location Board (GFLB) has established a minimum bid of $500M from developers competing for one of three downstate casino licenses.

The board began the formal bidding process by releasing a request for applications (RFA) on Tuesday which stipulates that casino bids require a $500M licensing fee as a minimum capital investment.

As in any poker game, the players can raise the ante by proposing projects involving much larger investments. The board’s RFA also indicated that the length of licenses will range from 10 to 30 years, depending on the size of the investment in the winning bids.

The RFA specified selection criteria stipulating that 70% of consideration will be given to economic impact and business development factors, including the amount of capital investment; maximization of state and local revenues; providing the highest number of jobs; and “creating a gaming facility of the highest caliber with a variety of quality amenities.”

The RFA said the balance of the selection criteria will focus on workforce and ownership diversity; sustainability; organized labor agreements; partnerships with live entertainment venues; and use of domestically manufactured slot machines.

A bevy of high-profile partnerships between real estate developers and gaming giants is queueing up to apply for the casino licenses, which the board said would be awarded for terms of between 10 and 30 years, depending on the quality of the bid.

The first venture to push its chips into the middle of the table in the wake of Tuesday’s announcement was a group planning to build a casino on Coney Island’s boardwalk including Thor Equities, Saratoga Casino Holdings, the Chickasaw Nation and Legends.

“For more than a generation, Coney Island has been waiting for a year-round economy that creates not just jobs—but careers. We look forward to submitting our bid and setting a new standard in economic revitalization and resiliency for New York,” the partners in the Coney Island bid said in a joint statement.

The Soloviev Group also announced that it plans to submit a bid on a tract of undeveloped land—formerly the site of a Con Edison steam plant—next to the United Nations headquarters on NYC’s East Side in Midtown.

In announcements that were made prior to the release of the RFA, SL Green is partnering with Caesars Entertainment and Jay-Z on a proposal for a casino in Times Square; Related and Wynn Resorts are teaming on a bid involving the western half of Hudson Yards; and Steve Cohen, the hedge fund billionaire who owns the New York Mets, is partnering with Hard Rock on a bid to build a casino next to Citi Field.

Resorts World New York City in Queens and Empire City Casino in Yonkers—which have gambling that does not include table games at two existing casinos that are adjacent to racetracks—also are expected to submit proposals. have expressed interest in building full-scale casinos.

In 2013, the New York State Constitution was amended to authorize up to seven casinos in the state. Subsequently, the state sited four destination resort casinos in Upstate NY. In 2022, the New York State Budget established a new siting process and criteria for the remaining three licenses, which are earmarked for the NYC metro area.

The GFLB’s RFA did not set a final deadline for the license applications. After bids are submitted, they’ll be evaluated by a Community Advisory Committee (CAC), including appointees designated by Gov. Kathy Hochul and Mayor Eric Adams.