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NY Facilities Location Board Addresses 350+ Additional Questions on Downstate Casino Bids

On December 16, the New York Gaming Facility Location Board (NYGFLB) published 353 questions and answers related to their casino bid request for application (RFA). Here are some key details.
NY Facilities Location Board Addresses 350+ Additional Questions on Downstate Casino Bids
The NYGFLB is responsible for recommending licensees for three downstate casino licenses, with bids due by June 2025. After submission, the board will review applications and provide recommendations to the New York State Gaming Commission (NYSGC), which is set to issue licenses by December 31, 2025.
The latest 94-page Q&A release follows an earlier round of questions submitted last year after the board’s official request for applications (RFA). The initial responses were provided in late August.
The latest document didn’t present major surprises but provided crucial clarifications on technical details applicants must address. The questions covered a wide range of topics, including the application process, alcohol regulations, construction, and taxation.
Here are some key takeaways from the most recent Q&A release:

Applications and Licensing

The board reiterated that its role is to recommend projects for licensing, while the final decision rests with the NYSGC.
Several questions focused on application requirements, particularly for the 11 proposed casino projects in and around New York City. Many of these bids involve partnerships or consortiums of casino operators, developers, and other stakeholders. The board clarified certain application requirements for these joint ventures.
  • Key Owner Applications: Applicants must provide information and signatures from all individuals holding at least a 5% ownership stake. Holding companies that own 33% or more of shares must obtain a license. Additionally, all officers and directors of such holding companies are required to submit individual license applications.
  • Background checks: All key owners and officers must undergo individual background investigations.
  • Application fee: The board provided no definitive guidance on which entity in a consortium should cover the $1 million (£798,371/€964,350) fee, advising applicants to “use their best judgment” in deciding payment responsibility.
The New York Gaming Facility Location Board (NYGFLB) has released a new set of responses to applicant questions regarding downstate casino licensing, covering a range of topics from application procedures to construction and taxation.

Application Requirements

All applicants must use the official Gaming Facility Licence Application found on the board’s website. Existing video gaming or commercial casino licensees must submit a new application, though commercial casinos may update their original applications with key changes. If applying for a higher-tier licence, a new application is mandatory.

Existing VLT Licensees

With "speed to market" being a priority, MGM’s Empire City and Genting’s Resorts World New York City—both operating under video lottery terminal (VLT) licences—are strong contenders for a casino licence. These facilities must demonstrate a minimum $500 million capital investment before launching commercial gaming. Once licensed, their VLT permits will be considered expired.

Taxation & Licensing

Applicants should assume a 25% tax rate on slot machine revenue and 10% on table games. For comparison, New York’s digital sports betting tax rate stands at 51% of gross gaming revenue (GGR).
The NYGFLB only makes licensing recommendations; the final approval is handled by the New York State Gaming Commission (NYSGC). Consortiums applying for a licence must determine among themselves who will pay the $1 million application fee.

Community Advisory Committees (CACs)

New York law mandates that CACs be formed in each district where a casino application is filed. These committees include state and local representatives and community leaders. Each CAC must hold at least two public hearings and determine whether there is enough public support to advance an application. The law also outlines how the state gaming commission will appoint CAC members and resolve conflicts in cases of overlapping authorities.
If a CAC recommendation is challenged, applicants may seek legal remedies through the judicial system, potentially leading to court disputes over casino bids.

Environmental Review & Construction Guidelines

Applicants should have already begun environmental assessments. The review must be completed before the CAC vote or by September 30, 2025. Some bidders, like Las Vegas Sands, have already secured legislative approval for their environmental plans.
Temporary casinos are not considered “phased construction” and must undergo substantial reconstruction before being integrated into the final facility. The board requires applicants to provide detailed floor plans, including space allocations for gaming, retail, and utilities. A minimum $500 million capital investment is required before opening.
When asked about slot machine sourcing, the board stated that “whenever possible, domestically manufactured machines should be acquired.”

Alcohol Policies

New casinos will follow existing New York laws for serving alcohol. Regulations include:
  • A limit of two complimentary drinks per person at a time
  • No open bar or unlimited drinks unless for private events
  • No drinking games or alcohol-based prizes
  • Strict prohibition on serving minors

Job Quality & Diversity Commitments

Employment commitments will be a condition of casino licences, and failure to meet them could result in penalties. Applicants are encouraged to follow the U.S. Department of Commerce’s “Good Jobs Principles” and establish clear pay structures.
The board emphasized the importance of diversity, requiring proposals to include details on gender, racial, and veteran representation in leadership. Applicants must demonstrate “good faith efforts” in hiring state-certified minority-, women-, and veteran-owned businesses, with a 30% utilization goal for pre-opening and capital expenditures.
Additionally, diversity will be a key factor in bid evaluation, with the board considering leadership representation, inclusion policies, and workforce diversity initiatives.

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