New York State gaming expansion has been a topic of wide discussion over the past nearly a decade. Senator James Skoufis (D-Cornwall) recently unveiled that the early issuing of the casino licenses for operation within the New York City area might be the way to go in this unprecedented situation which has taken its toll on the state coffers.
Ever since mid-March, New York State has remained closed and its commercial casinos and racinos are closed for business to this day. More than five months later, a reopening has not come and Gov. Andrew Cuomo does not consider it necessary for the time being. Every day without gambling operation at the aforementioned venues results in a hit for the state budget.
Casino Licenses
Gaming revenue amassed is able to support the coffers with regular allocations that are later on used for various local projects, roadwork, beautification work, and various initiatives. The state has a deficit reaching billions at this point and no sustainable source of funds for it. In the past mobile sports wagering has been considered a valuable source of revenue allocations that could alleviate the situation when it comes to the budget.
A casino expansion has also been on the table, as there are three commercial casino licenses still awaiting their casino operators. Such an expansion could introduce nearly US$1 billion in revenue by January 2021. Empire City Casino located in Yonkers and Resorts World New York City in Queens are the two gambling locations that will fight for their right to become well-rounded casino venues and generate substantial gaming revenue down the road.
At the moment, Empire City Casino features electronic tables, video lottery terminals, as well as video blackjack. The latter boasts progressive slot machines, video poker, and more. Casino operators have been looking forward to 2023 when the state would have permission to issue three more casino licenses for fully-fledged operation.
What’s to Come?
Now state lawmakers would work towards accelerating this license issuing to 2020 or the early months of 2021. Projections Sen. Skoufis made are that each of these two gaming halls could pay about US$500 million for a casino license. He also pointed out that the casino expansion could still take place in 2023, as the venues will need time to prepare their gaming complexes for it.
The only thing that will change is that they will be confident that good times are coming, while New York State uses the money to fill the gaping budget hole. An alternative move would be for the state to raise taxes over the upcoming months if a federal stimulus does not alleviate the situation.
Moreover, cuts to local governments and other budgets might also be implemented as an alternative measure. The issuing of those three casino licenses would make the number of commercial and tribal casinos an equal one, presenting equality and balance to the local field. Gross gambling revenue, sports wagering revenue, as well as the gambling expansion are expected to alleviate the situation.
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