Three casinos are coming to the five boroughs — two in Queens and one in the Bronx.
The New York state Gaming Commission made the official announcement Monday, capping off a process that has been a dozen years in the making.
The decision to award licenses to Bally’s Bronx at Ferry Point, Hard Rock Metropolitan Park near Citi Field, and Resorts World New York City near JFK Airport could transform the city’s economic and entertainment landscape in the coming years. But the move could also pose what critics say are untold risks for local residents and businesses.
“Congratulations on behalf of the state of New York,” Brian O’Dwyer, chair of the commission, said to the awardees. “ We look forward to seeing the jobs, economic development, infrastructure and gaming revenue come to fruition.”
The state is banking on a hefty financial return, beyond the $500 million licensing fee to be paid by each of the casinos. An evaluation released by the Gaming Facility Location Board earlier this month stated that with around 20 million people living in the metro area as well as a stream of domestic and international tourists, the total downstate casino market “could reach approximately $5.5 billion in gross gaming revenue in 2033,” more than enough to sustain a thriving downstate gaming industry.
Within the first decade of operation, the board predicted the three facilities would collectively generate almost $13 billion in taxes, including $7 billion in gaming taxes and $5.9 billion in hotel, sales and property taxes.
Bally’s said its $2.3 billion casino project would employ 15,000 people and 70% of construction and permanent facility jobs would go to Bronx residents. The $5.3 billion Hard Rock Metropolitan Park project has said 55% of its 6,000 full- and part-time jobs would go to Queens residents and 24% of its investment would directly benefit Queens-based firms.
The prospect of full-fledged gambling in the city polarized residents and elected officials in some communities. While advocates pointed to the thousands of jobs the projects are expected to generate, proponents worried about the potential toll on small businesses and families harmed by gambling addiction.
Hard Rock Metropolitan Park drew perhaps the most opposition. The project was blocked for one year by one local legislator, state Sen. Jessica Ramos, before another, state Sen. John Liu, sponsored the needed legislation that allowed public parkland to be turned into a commercial site.
Ramos said in a statement after the announcement that “casinos bring real risks to surrounding neighborhoods.”
“And in areas like Roosevelt Avenue, where we are already confronting organized criminal activity, projects like this risk accelerating illicit economies and exploitation rather than stabilizing our streets,” she said. “These are not abstract concerns.”
New York Mets owner Steve Cohen, who is backing Hard Rock Metropolitan Park, said in a statement the project will create 25 acres of new open space for the public, 23,000 union jobs and more than $1.75 billion in community benefits and infrastructure.
“Since the day I bought the team, the community and Mets fans have made it clear to me that we can and should do better with the area around the ballpark,” he said. “Now, we are going to be able to deliver the sports and entertainment district that our fans have been asking for."
The proceedings were briefly interrupted by demonstrators, who shouted, “Shame on you! Hochul must go!” Gov. Kathy Hochul championed the development of casinos downstate.
The Gaming Commission said it would appoint a third-party monitor to oversee each project to ensure compliance with the law and that the casinos fulfill various community benefits agreements.
Bennett Liebman, the government lawyer in residence at Albany Law School, said the promise of such a monitor was vague.
“The catch is trying to enforce it,” Liebman said. “If Resorts World or Steve Cohen only fulfills 90% or 95% of the community benefits agreement, what is the state going to do? How do you police that?”
“It’s hard to believe you’d pull a license for that,” he said.
