New York state will soon open up bidding for licenses to operate three full-gaming casinos in the five boroughs and the surrounding area — an untapped market the giants of the gambling industry have long had in their sights.
Regardless of whether the casinos are profitable, there will be a windfall to the state: Each coveted license, by law, will fetch at least $500 million in fees, not to mention the tax revenue — at least 25% on slots and 10% on table games — that will follow once the facilities are up and running. Licenses for full-scale casinos allow live table games with dealers, attracting a larger clientele.
But even before the bidding process officially begins, it’s already been a financial boon to two classes of New Yorkers: politicians and lobbyists.
A review by Gothamist shows major casino companies and real estate tycoons have upped their spending on lobbying and political contributions in 2022 as New York gets ready to solicit proposals for the three remaining casino licenses, which are on track to be awarded next year. A review of filings show:
- More than 90 companies and firms — including top spender Genting New York, the owner of Resorts World Casino in Queens — spent more than $9 million total lobbying the state and city governments on gambling-related issues through August 2022, according to records from the state Commission on Ethics and Lobbying in Government.
- That’s not far behind the $12 million spent during the same time period on lobbying related to the state’s entire education system, a far broader topic that drew spending from more than 350 organizations.
- The gambling-related lobbying is on pace to easily top the $12 million spent on the same issue last year and the $10.6 million in each of the two years prior.
- At the same time, casino companies, casino-seeking real estate developers, their executives, and lobbyists have pumped millions of dollars into New York political races this cycle — notably the campaign of Democratic Gov. Kathy Hochul, whose administration is set to oversee the casino-bidding process at an arm’s length.
- Resorts World, Bally’s, Hard Rock, Caesars, and Las Vegas Sands have all contributed to Hochul’s large campaign war chest, while Wynn Resorts founder Steve Wynn — who no longer has a role at the company — is one of Republican opponent Lee Zeldin’s biggest backers.
“Casino operators want to bet on a sure thing, and making campaign contributions and hiring hotwired lobbyists strengthens their hand in getting what they want,” said Blair Horner, executive director of the New York Public Interest Research Group, a good-government organization.
Hochul, who has raised more than $45 million for her campaign, has repeatedly denied that any political contributions have influenced her government decision-making. She became governor after her predecessor Andrew Cuomo resigned in disgrace last year, and is now seeking a full term in office.
“Certainly, there's been no connection — never has been, never will be — between a contribution and a (government) policy or a decision made,” Hochul told reporters when asked last week about the casino contributions, adding: “I’m playing by the rules — always will.”
Here’s a look at some of the biggest-spending casino interests, and where they’re eyeing a casino in the New York City area:
Casino operators want to bet on a sure thing, and making campaign contributions and hiring hotwired lobbyists strengthens their hand in getting what they want.
Resorts World/Genting New York and MGM
Nobody is spending more in New York than Genting, the Malaysia-based multinational giant of the casino industry.
Genting owns the massive Resorts World racetrack casino at Aqueduct Racetrack in Queens, as well as the full-fledged Resorts World Catskills casino north of the city in Sullivan County. It’s seeking a license to convert the existing Queens facility into a full-scale casino.
Last year, Genting New York spent $1.9 million on lobbying in New York, making it the fourth-largest spender on lobbying in the entire state, according to state records. This year, the company already spent $1.5 million through August — putting it on track to easily surpass its 2021 total by the end of the year.
The company listed the New York State Gaming Commission — which regulates the gambling industry in New York and appointed the siting board that will recommend which casinos should win a license — as the focus of its lobbying, including executive director Robert Williams.
Genting’s political action committee — GAI PAC — has doled out $600,000 to Democratic candidates and committees since 2020, including $69,000 to Hochul’s campaign, state campaign finance records show.
In response to questions about Genting’s lobbying and campaign spending and why it’s important in its pursuit of a full casino, Resorts World spokesperson Dan Bank issued a statement touting the company’s efforts.
“We look forward to putting a proposal forward that builds on our proven track record of providing thousands of union jobs, supporting local small businesses and community nonprofits, and generating more than $3 billion for New York’s public schools,” Bank said.
MGM Resorts International, which owns more than two-dozen casinos in the U.S., including its flagship site in Las Vegas, is also seeking to convert a major race track casino to a full-fledged facility — the Empire City Casino at Yonkers Raceway just north of the Bronx.
The company has spent at least $242,000 on lobbying this year through August, according to records. Among others, MGM lobbied the state Legislature and Hochul’s office by holding “general discussions regarding commercial downstate casino licenses,” according to its filings.
Hard Rock International/Seminole Tribe of Florida (plus Mets owner Steven Cohen)
Hard Rock, the worldwide casino and restaurant brand owned by the Seminole Tribe, entered the state’s political and lobbying scenes in a big way this year.
The company had been in talks with major New York City real estate firm SL Green Realty Corp., which has been seeking an operator to pursue a casino atop its 54-story tower at 1515 Broadway in Times Square. On Wednesday, the New York Times reported that Caesars Entertainment is the operator that's partnered with SL Green to bring a casino to Times Square.
But more recently, Hard Rock has been talking with Steven Cohen, owner of the New York Mets, about potentially pursuing a casino at Willets Point near Citi Field in Queens, according to two people with knowledge of the talks.
Both Hard Rock and Cohen have been spending on lobbying, with Hard Rock spending $315,000 through August this year. A Cohen-owned entity called New Green Willets LLC, meanwhile, has spent more than $250,000 on lobbying.
Both entities have also been major donors to Hochul’s campaign, with Hard Rock, its executives, and interested parties associated with the company contributing at least $100,000 in part by hosting a fundraiser for her at the new Hard Rock Hotel New York near Times Square in June.
New York Mets owner Steve Cohen waits for the team's baseball game against the Los Angeles Dodgers. Cohen is vying for a license to operate a full-fledged casino in New York City.
In June, Hard Rock issued a statement to the New York Post acknowledging the fundraiser. The statement said attendees were “invited to that event via invitation that was approved by our compliance attorneys and sent by the president of Hard Rock Support Services with no reference to a casino or casino licensing process in New York.”
SL Green, meanwhile, is still pursuing a casino at its Times Square property, and has executives and lobbyists that have contributed to Hochul’s campaign.
“There is no more iconic place on the planet than Times Square, and no better place for a world-class gaming and entertainment destination in New York,” SL Green representative Cathy Rought said in a statement last month. “This is the opportunity of a lifetime to bring visitors from around the world to Times Square and to reinvigorate our top tourist destination.”
Las Vegas Sands
The casino resort empire founded by the late billionaire Sheldon Adelson, who was a Republican megadonor, has made it known it's in the market for a New York City casino.
Just where remains to be seen, though the company had reportedly spoken with Cohen, the Mets owner, too.
“The density of population and the ethnicity and the access in New York makes it very appealing, and lack of capacity still remains a premier market in my mind, if we can get there,” CEO Robert Goldstein said in an earnings call earlier this year. “A lot of competition, we're one of many in the hunt there.”
Goldstein himself was a donor to former Gov. Andrew Cuomo, giving $25,000 to the Democrat in 2020 at a time when Hochul was his lieutenant governor. Las Vegas Sands as a company, meanwhile, gave Hochul’s campaign $5,000 — the maximum corporate donation — in December 2021, not long after she took office as governor.
On the lobbying front, Las Vegas Sands has spent about $250,000 in New York through August this year, according to state records. That’s already more than it spent in all of last year, but less than the more than $400,000 the company spent in 2020, a time when some casino operators were unsuccessfully trying to convince Cuomo to expedite the casino-siting process.
Much of the lobbying has been focused on state officials, including the gaming commission and Hochul’s budget division, and New York City, including Frank Carone, outgoing chief of staff to Mayor Eric Adams. But the company also listed lobbying Nassau County Executive Bruce Blakeman and officials in the town of Hempstead about casino expansion, raising the possibility of a casino bid on Long Island.
Much of the lobbying has been focused on state officials, including the Gaming Commission and Hochul’s budget division, and New York City, including Frank Carone, outgoing chief of staff to Mayor Eric Adams.
Wynn Resorts/Related Companies
Wynn Resorts and the Related Companies — the largest landlord in New York City — have already announced they’re partnering on a bid for a casino at Western Yards, a property near the Jacob Javits Center that is the next phase of Related’s Hudson Yards development.
Related’s chairman and founder, Stephen Ross, is a major Hochul contributor, giving her $69,700 on Aug. 12, 2021 — just two days after Cuomo announced his resignation. That’s the maximum individual donation allowed for the general election and the Democratic primary, combined.
Wynn Resorts, meanwhile, was founded by Steve Wynn, a Republican megadonor. Wynn, however, stepped down from the company in 2018 as he faced multiple sexual misconduct allegations, which he denied. He’s since received a major windfall after divesting his shares.
Steve Wynn and his wife, Andrea, are major supporters of Rep. Lee Zeldin, the Republican congressman from Long Island who is challenging Hochul. Both contributed the maximum amount to Zeldin’s campaign.
Times Square in September 2021. A bid to bring a casino to Times Square is one of many proposals being floated around as the state will soon begin its process of awarding a full-scale license.
But Steve Wynn’s greater contribution was to a pro-Zeldin super PAC known as Save Our State, which has been airing ads in support of Zeldin’s campaign. He gave $500,000 to the effort, according to state records.
At a campaign stop in suburban Albany last month, Zeldin defended his contributions from Wynn.
“Steve Wynn, he grew up in New York,” Zeldin said. “He’s someone who has his place where he once went to summer camp when he was a kid, and he is involved in this campaign because he cares about the future of this state.”
For her part, Hochul said the pro-Zeldin super PAC — one of two supporting her Republican foe — is one of the reasons she had to raise so much money herself.
“I don't have the benefit of having billionaires dumping millions and millions of dollars as recently as this week into dark money super PACs,” she said on Oct. 12.
What’s next?
The state's gaming commission named the first three members of the Gaming Facility Location Board — the key panel that will essentially pick the winners of the casino licenses — on Oct. 3.
That started a 90-day clock to issue a formal request for proposals, or RFP, which will essentially open up the bidding process for the final three casino licenses. The deadline to issue the RFP lines up with the start of 2023.
From there, the selection process will officially begin, with casino operators and developers submitting proposals that will be judged on their economic impact, local support, and more.
