David Paterson Advocates for Streamlining Casino Licensing in New York City

Former New York Governor David Paterson is spearheading a high-stakes lobbying initiative for Las Vegas Sands, specifically designed to navigate the complexities of casino licensing for three proposed venues in New York City. By focusing his efforts on streamlining the regulatory hurdles associated with casino licensing, Paterson aims to accelerate the approval process and bring large-scale commercial gaming to the bustling metropolitan area, ultimately fostering significant growth in the regional casino business.

In 2013, New York voters green-lighted the establishment of up to seven casinos statewide — four in upstate regions and three in downstate locations, including New York City. However, lawmakers imposed a moratorium on the downstate casinos to give a competitive advantage to the upstate gaming operations, a restriction set to last until 2023.

Paterson argues that the delay is unwarranted, stating, “Is it going to happen in 2023 or 2020? Why not start three years earlier? This is a tremendous opportunity to create jobs in New York.” All four upstate casinos are operational but have struggled to meet their anticipated gross gaming revenue (GGR) levels.

A Troubled Past with Gaming

Paterson’s history with the gaming sector has its complications. In January 2010, during his governorship, he awarded a contract for the Queens casino at Aqueduct Race Track to a group tied to celebrity Jay-Z, igniting controversy. Allegations surfaced that his familiarity with Jay-Z influenced his choice, subsequently leading him to recuse himself from the bidding process.

The authorization of video gaming terminals (VGTs) came about in New York in 2001, in the wake of the economic challenges following the 9/11 attacks. Scandals and delays hampered the implementation of VGTs at the Aqueduct venue, the most lucrative prospect, and ultimately led to Genting Group, a Malaysian casino operator, winning the license. Genting opened Resorts World New York City in late 2011, following a significant upfront fee of $380 million.

The Potential of the NYC Casino Market

Today, Empire City in Yonkers stands as the closest racino to New York City. Previously, MGM Resorts purchased the venue for $850 million, demonstrating the competitive nature of the gaming industry in the region. Both MGM and Genting are advocating for a more expedited process regarding the NYC casino licenses.

The New York City gaming sector presents a lucrative prospect that could yield hundreds of millions in additional tax revenue. This influx could benefit local schools and help to rejuvenate the Metropolitan Transportation Authority (MTA). In a joint statement, Genting and MGM stressed the importance of capturing potential tax dollars that are currently leaving the state.

As the push for the expedited licensing continues, both companies have reportedly offered substantial sums in licensing fees to facilitate the lifting of the moratorium ahead of schedule.

Conclusion

David Paterson’s lobbying efforts highlight the ongoing dialogue surrounding the casino industry’s expansion in New York City. With the potential to generate significant economic benefits, the conversation around uplifting the moratorium and initiating new licenses continues to heat up.