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The competition over new downstate casino licences in New York has attracted the interest of industry players and local communities. As several large operators compete for a small number of approvals, there is increasing speculation as to how the process will play out. Regulators have been categorical that no licence will be granted without a thorough review, and this has predetermined a very closely watched competition.
For many New Yorkers, this increased scrutiny also comes with the hope that increased gambling options are not too far away from becoming a reality. The state has not regulated online casinos, and this has seen locals seeking more variety resort to offshore casinos that are licensed in other jurisdictions. According to gambling expert Jovan Milenkovic, many online casinos recommended for US players tend to offer more in terms of bonuses, game libraries, and extensive loyalty programs. These sites are popular, and the potential of new local casinos being licensed is another twist of interest to players who desire more options locally without necessarily going beyond the state borders.
The regulator who has been spearheading this process, Brian O’Dwyer, chairman of the New York State Gaming Commission, has been adamant in his position that only candidates of the highest standards of integrity will be allowed to proceed. His remarks at the Racing and Gaming Conference in Saratoga emphasized that the state will make sure that casino operators are subjected to the most stringent legal and operational standards.
These assurances are particularly important considering that he has previously expressed concerns over how certain operators in Nevada did not adequately meet their anti-money laundering requirements. His stance does not leave much doubt that the process in New York will be one of the most stringent in the nation.
O’Dwyer’s strategy shows the seriousness with which the state is considering the possibility of introducing up to three new downstate casinos. He reminded the audience that the commission is not a rubber stamp or a mere spectator in this process. By making integrity the focus of the review, the commission is sending a message to the bidders and the general population that the licences are not a given to anyone. Eight bids are under consideration, which is a very competitive environment, and only the most prepared and compliant candidates will shine.
The state commission is not the only decision-making process. Local Community Advisory Committees, with NYSTEC’s help, are also playing a significant role in reviewing every proposal. Their contribution will decide whether a project can even proceed to the next level. The recent hearings in Yonkers and Manhattan demonstrate how closely communities are following these developments, as the effects of a new casino can be dramatic to local economies. The committees have until the end of September to determine which bids they will recommend, and their recommendations will determine which applicants proceed.
After proposals are approved locally, they will be forwarded to the Gaming Facility Location Board of the state, which will make its own decisions. O’Dwyer observed that although the commission tends to agree with the findings of the board, the ultimate decision lies with his team to make sure that the applicants are up to all the standards stipulated in the law. As the year draws to a close, the speed of these decisions will only accelerate, further building the anticipation around the process.
O’Dwyer has clarified that previous scandals involving operators in other jurisdictions will be taken into consideration, but not necessarily as a disqualifying factor. His previous statements regarding fines that have been paid by popular casinos in Nevada regarding compliance issues highlight that New York is learning lessons from what has occurred in other states. Nevertheless, he has not ruled out the possibility that such issues may affect final results in case they cast doubt on the suitability of a company.
To the general population, the focus on transparency and standards is what makes this process so closely followed. The potential of new entertainment destinations, employment, and tourism advantages has created high expectations, but the slow pace of the commission demonstrates that the state is not ready to compromise oversight with speed. In December, when the licences are likely to be issued, New Yorkers will finally know which operators have managed to pass one of the most stringent regulatory tests in the industry.