Hochul vetoes casino timeline bill as Addabbo claps back

Governor Kathy Hochul of New York recently vetoed S9673A, a pivotal bill aimed at regulating the submission and awarding process for three downstate casino licenses. This decision has raised concerns among industry stakeholders regarding the clarity and efficiency of the licensing process, which many believe is in dire need of refinement.

The bill S9673A was designed to establish strict deadlines for the submission of applications, with an initial application deadline set for August 31, 2024. However, under the existing timeline outlined by the New York State Gaming Commission (NYSGC), applications for the coveted downstate licenses are not due until June 27, 2025. This discrepancy highlights the disarray in the current licensing landscape.

Despite the clarity of the proposed timeline, the reality is that there are currently 11 casino projects being evaluated in and around New York City, yet none have progressed to formal application submission. This stagnation raises questions about the viability of these projects within the established regulatory framework.

S9673A also stipulated the formation of community advisory boards, tasked with reviewing casino bids in their respective districts. These boards were to be assembled within 30 days of the application period’s conclusion, with a mandate to deliver decisions within 120 days. The bill aligned its licensing deadlines with the existing NYSGC timeline, which mandates that the Gaming Facility Location Board awards the three vital downstate casino licenses by December 31, 2025.

In her veto message, Governor Hochul emphasized the potential unfairness of altering the timeline mid-process, arguing that it would disproportionately benefit certain bidders while disadvantaging others. “I cannot support a bill that aims to change the rules in the middle of the process,” Hochul stated. Furthermore, she defended the necessity of maintaining the current timeline, which ensures compliance with local zoning laws and encourages proactive engagement between applicants and local governments.

Response from Senator Joseph Addabbo, Jr.

In an immediate response to the veto, State Senator Joseph Addabbo Jr., the bill’s senate sponsor, expressed his disappointment and criticism of the decision. He stated, “Codifying a timeframe for an already tedious downstate casino process would streamline the application process, providing much-needed clarity to unions and residents regarding potential job creation timelines. In turn, this would enable the Metropolitan Transit Authority (MTA) to anticipate revenue generated from licensing fees and project future earnings based on casino operations.”

Addressing the governor’s concerns about altering the timeline mid-course, Addabbo clarified, “My legislation aimed to enhance the credibility of the current downstate casino process, not to alter an existing framework. Currently, there is no established timeline, and the veto of S9673A only prolongs an already drawn-out process.” He highlighted the urgent need for a structured approach that would facilitate the creation of thousands of union jobs and ensure financial support for the MTA, which could exceed $2 billion initially.

Addabbo has indicated plans to reintroduce revised legislation aimed at establishing a definitive timeline for the application process, proposing to set a June 2025 date for submissions with the conclusion of the process slated for December 2025. He emphasized, “Establishing a codified timeframe doesn’t constitute altering the rules; it provides essential structure to a process that is currently lacking in both clarity and effectiveness.”

This situation underscores the critical need for transparency and efficiency in the New York gambling landscape, as stakeholders await clarity on the future of downstate casino licensing. As the industry continues to evolve, legislative adaptations that promote operational transparency remain vital in ensuring sustainable growth and community engagement within the sector.