Listen to this articleThe basics:
- NY gaming board selects 3 downstate casinos: Bally’s Bronx, Hard Rock Queens, Resorts World NYC
- Combined projected revenue could reach $5.5B by 2033
- Atlantic City officials warn of potential 20%–30% revenue loss, increased competition
- Experts call for New Jersey casino expansion, urban redevelopment to remain competitive
A long-anticipated threat to the New Jersey casino industry took a major step forward this week. On Dec. 1, the New York Gaming Facility Location Board selected three applicants for casino licenses in New York City.
The three projects that will submit to the Gaming Commission for licensure consideration include:
- Bally’s Bronx estimated 2030 opening
- Hard Rock Metropolitan Park in Queens estimated 2030 opening
- Resorts World New York City slated to open as soon as this spring
A New York constitutional amendment allowed for up to seven casino facilities statewide. The first four would locate upstate and then the final three licenses downstate. That process has played out over the last few years, leading to the Monday decision by the board.
“The downstate gaming market is among the nation’s strongest, given the area’s dense population, high income levels, and tourism volume,” the board wrote in its selection document. “The large local population base residing within a two-hour drive of the proposed casino sites is expected to anchor long-term visitation, supplemented by domestic and international tourism. Each proposal is positioned to compete for premium gaming customers through brand strength, amenities, and facility design.
“The Board’s consultants project that the total downstate casino market – comprised of these three casinos – could reach approximately $5.5 billion in gross gaming revenue in 2033, the projected market stabilization year.”
‘A true public service’
In a statement, NYS gaming commissioners said:
“The Gaming Facility Location Board has performed a true public service. These five individuals volunteered hundreds of hours to review and digest thousands of pages of complex application material and ultimately made the best selections for the State of New York. … We entered this process with a tabula rasa, and are concluding with three impressive projects that will transform communities, establish career opportunities for residents, and drive much-needed revenue to the MTA, public schools and the City.
“The Gaming Commission has already undertaken the background investigations of the applicants and is expeditiously applying its statutory license suitability criteria to ensure that these casinos are operated with utmost integrity and fiscal responsibility. A New York gaming license is a privilege – and this Commission will ensure those entities fortunate enough to be selected for licensure meet New York’s rigorous standards.”
New York Gov. Kathy Hochul expressed gratitude to the board and Chair Vicki Been for their “careful review.” Hochul also noted the high standards her administration stressed during this selection process.
“From the moment that three downstate casino licenses were authorized in the 2022 State Budget, I have been clear: any approved project must provide real benefits to its community and have sustainable economic plans,” she said. “The three projects approved today promise to unlock billions in funding for the MTA and create tens of thousands of jobs. It is critical that they keep those promises. I look forward to the Gaming Commission’s review of the Board’s recommendations in the weeks ahead.”
NJ’s next move
The expected announcement has, of course, reverberated here in Jersey.
In a statement, Casino Association of New Jersey President Mark Giannantonio said downstate New York casinos have been on the horizon for years.
“We recognize this expansion will have a negative impact, over time, on the Atlantic City market, which makes our mission even clearer: we must accelerate Atlantic City’s transformation into a leading year-round resort destination,” Giannantonio told NJBIZ in a statement. “The Atlantic City casino industry has already made significant strides in diversifying its offerings to provide a world-class experience for its customers, investing more than $1 billion in their properties over the past five years.”
We recognize this expansion will have a negative impact, over time, on the Atlantic City market, which makes our mission even clearer: we must accelerate Atlantic City’s transformation into a leading year-round resort destination.
– Mark Giannantonio, president Casino Association of New Jersey
Giannantonio noted that Atlantic City casinos represent the largest regional employer. The properties support tens of thousands of jobs, as well as serve as a critical engine for South Jersey and the entire state.
“We must stay focused on working collaboratively with government officials, community leaders, and stakeholders on the sustained reinvestment and revitalization of Atlantic City,” said Giannantonio.
Meanwhile, Sen. Joe Pennacchio, R-26th District, renewed his call for slot machine gambling at horse racetracks.
“New York is charging ahead with three new casinos while New Jersey sits on its hands and watches our gaming revenue drift across the river. It’s unacceptable,” said Pennacchio. “A Meadowlands racino would be an immediate economic engine for our state, yet leaders refuse to act. I’m renewing my call for racinos because New Jersey can’t afford to keep falling behind while our neighbors eat our lunch.”
A wakeup call
John Boyd Jr., principal of location advisory firm The Boyd Co., said Dec. 1 will stand as a landmark day for New York City.
“The casinos anchoring new billion-dollar mixed-use real estate developments, generating billions of dollars of new licensing and tax revenues for the City and creating thousands of new jobs are transformative economic events for New York City,” Boyd, an expert on corporate site selection, economic development and business location strategy, told NJBIZ. “These events for the Big Apple will be hard felt across the Hudson in New Jersey and have to be viewed as a wakeup call to the Legislature to address something the state knew was coming for several years now.
“Just as former Gov. Brendan Bryne addressed the public school funding crisis by signing off on the state’s first ever personal income tax on July 8, 1976, yesterday’s events in the Big Apple are a call to action for New Jersey.”
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Boyd said that the introduction of three full-scale casinos in New York City marks an expansion of the gaming sector. Additionally, it establishes new anchors for massive economic development projects in the Big Apple.
Highlighting the economic boon it will bring for New York City, Boyd also noted impacts here across the Hudson River.
“Estimates are that Atlantic City could lose upwards of 20-30% of its casino revenue. This creates significant risk that one or more casinos may close.
“Hard Rock Chairman Jim Allen has speculated that ‘at least’ one of the nine casinos now operating will likely be forced to close and some analysts expect more,” Boyd continued. “That said, it will be important for Atlantic City and State of New Jersey to make those casino to housing unit conversions economically viable.
“Atlantic City casinos will need to step up loyalty and partnership programs — similar to regional collaboration that has developed among Las Vegas, Reno, Lake Tahoe and Laughlin casino properties. Atlantic City will also have to work harder and more creatively to focus on attracting new non-gaming corporate investment and jobs.”
A regional ramp up
Boyd said that what makes Atlantic City special is the boardwalk and beach.
“Mixing that into a regional approach and with partnerships with the new casinos in New York City could be a winning hand,” said Boyd. “On the diversification front, maybe the time has come for an Atlantic City ‘Czar of Economic Development’ to oversee a public-private economic development partnerships that can compete with the likes of Las Vegas and Orlando in terms of fundraising and hiring the best professionals to improve the global image of Atlantic City and close new deals and investment for Atlantic City.”
Noting other urban projects in Detroit, Atlanta and West Palm Beach, Boyd is hopeful that the New York City developments could present a “watershed opportunity” for Atlantic City.
He also laid out a potential domino effect.
“To counter yesterday’s events in New York City, I fully expect increased momentum for casino expansion in New Jersey. Most likely in the Meadowlands or Monmouth Park. Or perhaps even an out-of-the box look at Trenton’s historic waterfront – valuable and underutilized – to do a casino and a very much-needed hotel,” said Boyd.
He noted that waterfront development component in other urban turnarounds — and the potential that Trenton offers from that standpoint.
“I would think a new hotel/casino/tourism district would also help Trenton get back a minor league baseball franchise, attract year-round events and other live/work/play mixed-use projects,” Boyd explained. “In the wake of Ken Burns’ ‘The American Revolution,’ which prominently featured Trenton – and ahead of next year’s America’s 250th birthday – what a great time to promote opportunities in Trenton (like a mixed-use casino) to national developers.”
