Only Casino Bidders with High Integrity Will Get Licences

The New York State Gaming Commission is signaling a strict approach to awarding downstate casino licences, with Chairman Brian O’Dwyer stressing that only applicants meeting the highest standards of integrity will be considered. O’Dwyer made the remarks during the Racing and Gaming Conference at Saratoga this week, underscoring the Commission’s commitment to rigorous oversight in a high-stakes bidding process.

O’Dwyer, who made headlines last year when he cited a sweeping money laundering investigation as a potential barrier for several bidders, reiterated the importance of reviewing the character, operational capacity, and legal compliance of casino operators. “Only those candidates who have met the highest standards of integrity and operational efficiencies will be awarded the licence,” O’Dwyer said, referring to recent cases in Nevada where operators faced fines for failing to meet anti-money laundering obligations.

Over the past 12 months, three Las Vegas casino properties — MGM Resorts, Wynn Las Vegas, and Resorts World Las Vegas — have agreed to pay fines to the Nevada Gaming Commission for anti-money laundering violations. MGM and Resorts World are among the companies bidding for New York licences, highlighting the Commission’s careful scrutiny of past compliance issues. O’Dwyer previously called allegations against multiple Las Vegas casinos “particularly disturbing,” citing a “culture of non-compliance” in handling suspicious activity.

 

Topic	Details
Commission Chairman	Brian O'Dwyer
Focus	Integrity and anti-money laundering compliance
Bidders Under Review	8 companies, including MGM and Resorts World
Licences Available	Up to 3 downstate casinos
Timeline	CAC votes by 30 Sept, final licences by 31 Dec
Fee	$500 million per licence

 

Rigorous Licensing Process

O’Dwyer spent much of his address detailing the multi-stage process for awarding up to three downstate licences. Local Community Advisory Committees (CACs) are reviewing proposals from eight bidders interested in casinos in the lower portion of the state. Public hearings this week in Yonkers and Manhattan focused on MGM Empire City and Caesars Palace Times Square.

By 30 September, the committees must vote on the projects in their jurisdictions, and only those receiving clearance can advance to the state-level Gaming Facility Location Board, which is tasked with recommending winners by 1 December. The Commission aims to issue licences by 31 December. O’Dwyer emphasized that the process is neither automatic nor perfunctory. “The commission is neither a rubber stamp nor a potted plant,” he said.

 

Standards for Disqualification

Under New York law, the Gaming Commission is largely bound to accept the board’s findings, though it retains authority to determine whether candidates meet stringent licensing standards. These standards mirror criteria used in upstate licensing more than a decade ago and include issues such as flagrant defiance of investigations related to gaming crimes, official corruption, or organized crime.

While past allegations of anti-money laundering failures are concerning, O’Dwyer has clarified they are not automatically disqualifying. Resorts World, for example, has maintained that regulatory issues at one property do not implicate its other operations. Nonetheless, recent enforcement actions in Nevada, including a $10.5 million fine against Resorts World Las Vegas for permitting illegal bookmakers, underscore the potential reputational and financial stakes for bidders.

 

Only those candidates who have met the highest standards of integrity and operational efficiencies will be awarded the licence.

 

High Stakes for the State

The licensing process represents a significant economic opportunity for New York. Each winning bidder is required to pay an upfront licensing fee of $500 million. O’Dwyer’s statements signal the Commission’s intent to balance financial gain with regulatory integrity, sending a clear message that past non-compliance, particularly in areas of anti-money laundering, will weigh heavily in the evaluation of potential licensees.