NYS bill to speed up downstate casino bidding is dead, observers say

It’s almost an open secret at this point: A bill approved by state legislators to speed up bidding for a casino license is dead.

Sort of by default.

The bill calls for bids for the three available downstate casino licenses by Aug. 31. But Gov. Kathy Hochul hasn’t acted on the measure and, with that deadline just weeks away, it is clear the bill is moot, according to analysts and legislative sources. Even if the governor’s administration is not saying so.

"It’s obvious — it’s the middle of August!" said Bennett Liebman, a government law professor at Albany Law School and former member of the state Racing and Wagering Commission. "Sorry, but you’re not going to say to these casino developers: ‘You have two weeks to put in your application for a $10 billion casino.’ That’s just not going to happen."

Liebman and others said it is clear the inaction means the Hochul administration wants to stick with a different timeline approved by a state casino siting board, which calls for bids in June 2025. That schedule is at odds with the one outlined in the bill, sponsored by Sen. Joe Addabbo (D-Queens) and Assemb. Gary Pretlow (D-Mount Vernon).

In theory, Hochul could have signed the bill and triggered bidding in August, vetoed the bill and endorsed the June 2025 schedule, or just let the clock run until the Addabbo-Pretlow bill is pointless.

"Practically speaking, the bill is moot," said Michael Hershman, CEO of the Soloviev Group, which plans to bid for a casino on the East Side of Manhattan. "The governor hasn’t spoken out for or against the bill. But her lack of action speaks volumes."

At this point, he added: "There is no way applicants can expect to submit bids in August."

Reached Thursday afternoon, Pretlow agreed: "I don’t think it’s going to happen."

Competitors still lining up

Many other likely competitors are lining up expected bids, including Las Vegas Sands at the former Nassau Coliseum; Steve Cohen/Hard Rock at Citi Field; Resorts World at Aqueduct horse racing rack; and MGM/Yonkers Raceway.

The governor has never said directly she would veto the August timeline. But her administration has not asked the State Legislature to forward the bill to the governor’s office, a necessary step before signature or veto, according to sources.

Asked about the bill in June, Hochul didn’t directly comment on it but said of the casino applications: "I am not getting involved in any of the decisions related to siting at all."

Hochul’s office declined to comment further. Addabbo didn’t immediately return calls to comment.

Some insiders say the Addabbo-Pretlow bill, even if not enacted, accomplished a purpose: prodding the Gaming Facility Location Board, a sort-of subsidiary to the State Gaming Commission, to set firm dates for the bidding process.

Before the passage of the bill, the Gaming Commission had balked at setting any date for receiving bids, saying it wanted ongoing zoning issues in New York City to be resolved first, among other concerns. The commission in March estimated bids would be taken in mid-2025 while not setting an exact date.

But three weeks after the State Legislature approved the casino siting bill, the location board met and adopted a schedule that called for bids submitted in 2025 and final decisions by the end of that year.

Stuart Rabinowitz, a location board member and former Hofstra University president, said at the meeting the dates were based on "our assessment of what’s workable and what’s efficient."

He added: "August [2024] is too soon and would put some potential applicants under a lot of pressure and would favor some and disfavor others."

Pretlow said though a bid target is set, he’s disappointed the finish line is still nearly a year and a half away.

"Maybe they locked in some dates," Pretlow said, "but they still stretch it out till the end of 2025."

By Yancey Roy

yancey.roy@newsday.com@yanceyroy