New York’s Casino Bidding Race Enters Uncertain Final Stretch

With two weeks until the next major deadline, New York’s long-running process to award up to three downstate casino licences has entered a volatile phase marked by legal disputes, behind-the-scenes deliberations and new signs of bidder hesitation.

After several quiet weeks, activity resumed Monday as the state’s Gaming Facility Location Board (GFLB) conducted site visits at the three finalist locations: Resorts World New York City in Queens, Metropolitan Park near Citi Field and Bally’s Bronx. The board’s recommendations are due 1 December, though they are non-binding. The New York State Gaming Commission will make the final decision. Whether the state will award all three licences remains unclear. As the timeline tightens, external challenges and shifting bid terms have increased uncertainty.

Board Conducts Limited Site Visits

The five-member GFLB toured the three sites Monday after reviewing each applicant’s financial and proposal documents. The board did not make members available to the media. According to its website, the visits were intended to clarify transportation, infrastructure and site-layout questions.

Monday’s trip is expected to be the only field visit before the recommendation deadline. Since the last application deadline on 30 September, the board has met seven times, usually weekly. A final meeting appears possible before 1 December, though the Thanksgiving holiday may disrupt planning. The structure mirrors the state’s previous casino licensing round in 2014–15, when the board recommended four casinos but the Gaming Commission initially approved only three. A fourth project, Tioga Downs, was licensed the following year.

The Metropolitan Park proposal faces a legal hurdle after the US Tennis Association (USTA) filed a lawsuit on 12 November against New York City. The USTA claims the city violated its lease for the Billie Jean King National Tennis Center by advancing the Metropolitan Park bid without proper consultation.

The litigation focuses on a “superiority clause” giving the USTA special rights during the US Open, including:

• Exclusive parking access at Citi Field lots
• Protection from competing events, except Mets home games
• Exclusive concessions, marketing and hospitality rights
• A 23-day protected window covering the tournament and qualifying rounds

The USTA says it does not oppose the casino project itself, only elements that could undermine tournament operations. It is seeking declaratory and injunctive relief, not damages.

A Manhattan Supreme Court judge last week issued a temporary restraining order blocking the city from finalizing a new pre-development agreement (PDA) with the project. Despite that, Metropolitan Park spokesperson Karl Rickett said the PDA has been signed in compliance with the order and that discussions with the USTA will continue.

Metropolitan Park is the most ambitious bid, valued at $8 billion. The USTA argues that the US Open’s existing annual impact—estimated at $1.25 billion and 1.1 million visitors—should not be jeopardized.

 

Resorts World Signals Possible Retrenchment

Resorts World NYC, long considered the strongest contender, may be reassessing its aggressive financial commitments. Bloomberg reported Monday, citing anonymous sources, that the company will ask state officials either to reduce its proposed tax rates or raise those of its competitors.

Resorts World’s application includes the highest financial offer in the process: a $600 million licence fee and tax rates of 56% on slot revenue and 30% on table games. Those figures exceed the proposals from its rivals. Bally’s has offered tax rates of 30% for slots and 10% for tables, while Metropolitan Park’s bid includes 25% and 10%, the minimum allowed.

A late-stage shift from Resorts World would concern state officials. Over the past year, three major operators—Las Vegas Sands, Wynn Resorts and MGM Resorts—have withdrawn from the race. MGM’s exit was especially unexpected, given early expectations that it and Resorts World were frontrunners. If Resorts World scales back its offer or exits altogether, the licensing process could be disrupted and the pool of applicants narrowed.

 

The closer we get to December, the less certain it becomes that all three licences will be awarded.

 

Revenue Projections Under Strain

The state’s Metropolitan Transportation Authority is counting on a minimum of $1.8 billion in combined licensing fees and gaming tax revenues from new downstate casinos. Budget officials expected those figures to be attainable earlier this year. Now, with legal disputes unresolved and bidders adjusting their financial terms, the outlook is less certain.

New York faces a projected $34 billion cumulative budget gap through fiscal year 2029, adding pressure for a swift and lucrative licensing outcome. For now, the process hinges on the GFLB’s recommendations due 1 December. Whether all three licences will be awarded—and whether all three bidders remain fully committed—remains an open question as the final phase approaches.