Despite New York Casino Progress, Issues Still Persist

New York’s three remaining downstate casino applicants moved forward this week, but newly released regulatory analysis shows the bids face significant scrutiny despite unanimous approval to advance. The Gaming Facility Location Board (GFLB) voted Monday to send all finalists — Bally’s Bronx, Metropolitan Park, and Resorts World New York City — to the New York State Gaming Commission (NYSGC) for potential licensing. The commission has until 31 December to decide which, if any, proposals receive one of the three available licences.

A 30-page rationale published alongside the approvals revealed a more critical view than the board’s public vote suggested. The document repeatedly cited “concerns” and “disappointments” across all proposals, especially around hiring, diversity, community benefits, traffic impact, and the reliability of financial projections.

State officials appear motivated to keep all three licences in play. The Metropolitan Transportation Authority is counting on casino tax revenue in future years, adding political pressure to approve as many projects as possible. But the GFLB also urged the NYSGC and local officials to enforce strict oversight on the commitments made by each bidder.

 

Downstate New York Casino Bids — Status Overview (8 Dec 2025)

Applicant / Project	Proposed Location	Project Cost	Key Strengths	Main Regulatory Concerns	Licensing Status (as of 8 Dec 2025)
Resorts World NYC (Genting)	Queens	$3.3B (part of $7.5B plan)	Fastest projected build-out (Mar 2026), aggressive tax bid	Requested lower tax after bids revealed; vague community benefits; only 1% local spend; undisclosed fines; inflated gaming counts	Advanced to NYSGC review; approval not guaranteed
Bally’s Bronx	Bronx	$4.0B total (incl. $2.3B Bally’s investment)	Strong hiring/diversity pledges; largest private investment for the borough; golf-course amenity	Highly leveraged operator; unclear internal diversity data; problematic parking/traffic design; benefit valuation may be overstated	Advanced to NYSGC review; conditional support
Metropolitan Park (Hard Rock + Steve Cohen)	Queens (Citi Field area)	$5.3B capital investment (total $8.1B)	Strong financing and development track record; strategic entertainment district location	Traffic and parking impacts; some community benefits not backed by binding agreements (housing, SkyPark)	Advanced to NYSGC review; least criticized proposal

 

Revenue expectations fall

Regulators and consultants project the new casinos could collectively generate $5.5bn in gross gaming revenue by 2033, the year they expect the market to stabilize. Bally’s projection came in below that mark, Metropolitan Park aligned closely with it, and Resorts World projected significantly higher revenue, driven by optimistic assumptions about tourism and premium gambling. Resorts World, long seen as the favourite due to its existing footprint and fast projected launch date — March 2026 — drew the sharpest criticism.

The operator bid aggressive tax rates of 56% for slots and 30% for table games, far higher than its competitors. Those terms were central to the board’s support. But after other bids became public, Resorts World asked to lower its rates to match competitors, a request the board rejected outright. The rationale states the recommendation is based on the original tax offer, “not on the lower rates it now would like to apply.” Regulators also questioned the operator’s proposed gaming floor. While the bid promised 6,000 slots and 780 tables, the board found the actual layout only supported 4,635 slots and 534 tables. It recommended licensing the facility at the lower numbers.

The analysis also raised concerns about the project’s $3.3bn investment share. Only 1% of that spending is projected to benefit Queens-based firms, which the board called “extremely low,” especially for an operator with longstanding community presence and strong local support. The board also criticized Resorts World’s community benefit proposals as vague and difficult to verify. Some commitments relied on land not owned by the operator, complicating enforcement.

On governance, regulators flagged parent company Genting’s record of late or over-budget projects. They also noted Resorts World did not disclose fines at its three New York properties, including the proposed site, though it did acknowledge a $10.5m anti-money-laundering penalty at its Las Vegas property. The omission was described as “concerning.”

Bally’s: Hiring plan praised, financial leverage questioned

Bally’s Bronx received a more positive tone overall, particularly regarding hiring and diversity promises. Regulators called those commitments “key factors” in their recommendation. The company’s plan includes major investment in the Bronx, historically the city’s lowest-income borough. The proposal’s unusual feature — an on-site golf course — was viewed as a revenue driver and a differentiator in the market.

Financially, however, the board acknowledged Bally’s remains “highly leveraged” and non-investment-grade. Its planned $2.3bn equity contribution represents an unusually large commitment for a company with limited experience delivering multibillion-dollar greenfield developments. The board said financing appears adequate but emphasized the company’s “mixed” execution history.

Regulators also flagged issues with Bally’s parking layout, calling circulation “complicated” and certain design elements “aesthetically suboptimal.” They noted these areas can be adjusted. On diversity reporting, the board criticized Bally’s internal disclosures, which listed more than a third of executives as “non-specified” race. Regulators said the response was “not acceptable.”

The proposal from Hard Rock and Mets owner Steve Cohen drew the least criticism. Both were described as financially strong with proven development records. Hard Rock’s entertainment partnerships and the project’s location — adjacent to Citi Field, the U.S. Tennis Center and a planned Major League Soccer stadium — were cited as natural advantages.

The project’s $5.3bn capital investment is the largest among the finalists. Regulators said Hard Rock and Cohen together have “substantial liquidity,” with Cohen holding an estimated $23bn net worth. Hard Rock was the only finalist to provide data on its responsible-gambling programs, though regulators said the information was limited.

Outstanding concerns focus on traffic, parking, and benefit commitments. The project replaces large parking lots used for Mets games and major events. The board urged close monitoring of traffic conditions during and after construction. It also noted the bid did not include enforceable agreements on several public-benefit promises, such as affordable housing units and the proposed “Flushing SkyPark.” Regulators recommended the NYSGC require completion of those projects as a condition of any licence.

 

Advancing these proposals does not guarantee a licence. Each applicant faces significant concerns that the Commission must weigh carefully.

 

Next steps

All three bids remain eligible for licences, but none is guaranteed. The New York State Gaming Commission will now conduct its own evaluation, weighing the GFLB’s findings, financial documents, community feedback, and ongoing legal considerations. A decision is due by the end of the year.