According to an analyst, it is probable that New York Casino will be recognized in 2025 as the development of “Circus” progresses.
It is unlikely that New York regulators will grant three casino licenses in the downstate area next year. This will likely delay the decision until 2025, further solidifying the state’s reputation as a chaotic hub of casino politics.
A casino industry expert claims that the current procedure for granting three casino licenses in downstate New York, led by Governor Kathy Hochul, has become chaotic. (Photo: The New York Times)
Brendan Bussmann, a B Global Advisors representative, shares his views on the political climate for gaming in various states, including New York, in a recent report from Truist Securities. The process of awarding three casino licenses in the New York City area is progressing slowly, leading Bussmann to believe that his prediction of 2025 for completion is realistic.
The analyst expressed concern about the duration of the second phase of the initial stage, as well as the following stages which may prove to be even more difficult and daunting considering the large scale and cost of the projects.
There is a possibility that there may be a bigger surprise in store. It is uncertain if Genting and MGM Resorts International will be guaranteed to obtain two out of the three downstate licenses.
The status of Genting and MGM as “favored nations” is being undermined by a scandal.
In 2022, legislators in New York gave the green light for three casinos in the downstate area. There has been much discussion about gaming companies competing for a single license, as it is believed that MGM’s Empire City Casino in Yonkers and Genting’s Resorts World New York in Queens will automatically receive two permits due to being “grandfathered” in.
Unfortunately, Bussmann mentions that Scott Sibella’s reported involvement in an illicit sports betting scheme may hinder the success of operators seeking New York casino licenses. Sibella has connections to both of these companies, having been terminated by Resorts World Las Vegas and previously holding the position of president at MGM Grand on the Strip for ten years.
Bussmann noted that Genting and MGM’s privileged position has diminished due to the Sibella controversy. This could give an opportunity for companies like Caesars Entertainment, Las Vegas Sands, and Wynn Resorts to potentially succeed in New York. However, it is evident that it will not be a simple feat.
The founder of B Global warned against a potential situation where real estate moguls engage in a politically influenced competition and there is an excessive push to lower tax rates, similar to what has happened with sports betting.
When discussing taxes related to gaming in New York…
According to Bussman, there is a potential for iGaming to become a reality in the third ring of the New York circus. The government may address this issue in the upcoming year. If online casinos are approved in the state, it would benefit online sportsbook operators who are currently facing a high tax rate of 51%, the highest in the nation.
The B Global analyst stated that the potential approval of iGaming in New York would probably come with a high tax rate.
He expressed his opinion that although the circus will remain in the city for a while, the only constant is that it is the money of New York, not the money of the people or the operators, that drives things in the Empire State.
Due to high taxes and a decrease in population, New York is in need of alternative sources of income. One potential solution is the implementation of internet casinos, which could generate much-needed revenue for the state. There appears to be a possibility for legislative progress on this issue in the upcoming year.
According to an analyst, the “Circus” project is expected to be completed in 2025, leading to the announcement of new casino awards in New York, as reported by Casino.org.
