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Downstate New York’s casino plan: progress or fantasy?

Ansh Pandey
Written by Ansh Pandey

New York City isn’t just a city — it’s the beating heart of global capitalism, a towering symbol of ambition, enterprise, and the American dream. Amid its iconic skyline of power and prestige, the city offers gaming experiences that reflect its grandeur. From the buzzing floors of Resorts World NYC in Queens to high-end private gaming lounges nestled within Manhattan’s elite circles, New York fuses entertainment with elegance, where even a roll of the dice feels like part of a billion-dollar dream.

Often dubbed the ‘Vegas of the East’, New York’s gambling scene has long captured the imagination of visitors and residents alike. So, when plans for expanding the city’s casino footprint were unveiled a few years ago, it sparked widespread interest and hope for economic growth.

The 2022 announcement

A major step toward extending legal gambling outside of the upstate regions where casinos have historically been concentrated was taken in April 2022 when New York state formally announced plans to issue three full-scale commercial casino licences for the Downstate region.  

By increasing tax revenue, creating thousands of jobs, and revitalising communities still recovering from the pandemic’s effects, this ambitious project was aimed at strengthening the state’s economy.

The state hoped to attract a blend of major casino operators, developers, and investment groups to tap into these lucrative markets. From Asian casino experience to European reliance, hopes were high. 

Why Downstate matter?

The focus on the Downstate region made strategic sense from the start. Home to more than two-thirds of New York State’s population, the area offers a huge customer base and the promise of significant tax revenue. It also boasts a thriving tourism sector and a well-established entertainment landscape — from hotels and restaurants to Broadway theatres — all of which align well with casino operations.

Another key advantage is accessibility. With dense transit networks, including subways and commuter rails, the region makes it easy for both locals and visitors to get around without relying on cars. All of this positions Downstate New York as a natural fit for casino expansion, supporting job creation, economic diversification, and new entertainment opportunities.

Progress, complexity, and delay

However, despite the initial fanfare, three years on, New York’s Downstate casino plan still remains only on paper. Not a single casino has opened in the region, as the licensing and development process has become stuck in a web of regulatory, environmental, legislative, and community challenges.

One of the primary bottlenecks has been zoning and land-use approvals. The New York City Council had to modify zoning laws to permit casinos in commercial and manufacturing zones — a lengthy process involving numerous public hearings and the city’s Uniform Land Use Review Procedure (ULURP). Designed to ensure community input and transparency, ULURP pushed final approvals into early to mid-2025, significantly delaying progress.

Further complicating matters, some proposals required additional land-use restructuring — such as grading, mapping, and obtaining permissions to build over streets — before zoning changes could take full effect. This added another layer of complexity to the approval process.

Environmental concerns

Environmental concerns have also added to the delays, with each proposed casino site required to undergo a State Environmental Quality Review (SEQR) to assess potential impacts. This process alone has pushed timelines into 2025. In some cases, climate-related protests have further slowed progress, underscoring the importance of public scrutiny. Community engagement is another crucial step.

Every bid must be reviewed by a local Community Advisory Council (CAC), tasked with gathering input from residents and stakeholders. These councils are not expected to complete their evaluations until summer 2025 — yet another procedural hurdle holding back the licensing process.

Financial and legislative hurdles

Financial and legislative factors have caused additional delays. Applicants must present verified funding plans, but it is difficult to commit hundreds of millions of dollars before obtaining a licence. Officials have acknowledged that although the timeline meets legal requirements, hurrying the process could lead to administrative complications and legal challenges. Meanwhile, responses to bidders’ inquiries have continued into late 2024, prolonging uncertainty.

The role of local opposition

Local opposition has been a consistent theme throughout the process. Community boards, particularly in Manhattan and Queens, have voiced concerns about traffic congestion, crime, and environmental impact. Senior executives in the Times Square theater and business communities are concerned that a casino might disrupt the cultural landscape of Broadway.

Nassau County residents have also expressed worries about increased traffic and changes to suburban character, factors that contributed to Las Vegas Sands’ withdrawal from its proposed Nassau Coliseum project in 2024.

Such opposition is significant because Community Advisory Councils have the power to effectively veto projects by withholding approval, meaning developers must navigate local sentiment carefully.

The brighter side 

Despite the delays, interest in Downstate licences remains strong. By the final proposal deadline, eight groups had submitted bids after addressing community and logistical concerns. Notably, three bidders with extensive experience in the Asian casino industry are competing for the licences.

Among them, Malaysia’s Genting Group, which already operates casinos in Malaysia, Singapore, Las Vegas, and upstate New York, is a leading contender. Genting plans to expand and upgrade its existing Resorts World NYC in Queens into a world-class integrated resort.

MGM Resorts International, parent company of Macau operator MGM China Holdings Ltd, has also entered the competition. MGM proposes expanding its facility at Empire City in Yonkers, investing approximately $ 2.3 billion to upgrade and expand its existing slot and electronic gaming offerings.

Other bidders include Mohegan Gaming, which has plans for a casino in Manhattan, and Bally’s Corp, aiming to develop a casino in the Bronx. The New York Gaming Commission launched a request-for-application process in January 2023, requiring at least $1 billion in licence fees and capital investment, with $500 million due within 30 days of licence award. 

The licences will be issued for periods ranging from 10 to 30 years, depending on the level of investment. Although the licencing timeline has been delayed, officials and developers remain optimistic. The licence awards are now expected in late 2025, with actual casino openings likely not before 2026 or 2027.

Although the path to opening Downstate casinos has been longer and more complicated than expected, the promise remains: substantial economic benefits, job creation, and new entertainment options for one of the world’s most vibrant regions. 

With strong bidders lined up and community concerns being addressed, the state is hopeful that the next chapter will finally bring the eagerly anticipated gambling opportunities to Downstate New York.

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