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The state’s top gaming boss says only the most trustworthy bidders will win a licence.
At the Racing and Gaming Conference in Saratoga, New York State Gaming Commission Chairman Brian O’Dwyer made his position clear, the state will not hand out its new downstate casino licences to anyone who falls short on integrity.
Nearly a year ago, O’Dwyer warned that a major money laundering investigation could derail some applications. Now, as the process nears its final months, he’s doubling down on that message: the rules will be tough, and no one gets a free pass.
Past problems will follow bidders into the race
Some casino groups are already carrying baggage from other states.
In Nevada, three big names, MGM Resorts, Wynn Las Vegas and Resorts World Las Vegas, have paid large fines for anti-money laundering (AML) failures. Two of them, MGM and Resorts World, are now among the eight companies bidding for a New York licence.
O’Dwyer said the state will look closely at these cases, along with “all other pertinent information” before deciding. He warned last year that repeated compliance failures show a culture of non-compliance that New York will not tolerate.
Local approval comes before the state vote
Bids have to clear the first hurdle in their own backyard.
Eight proposals are on the table for the downstate casino licences, but each must first win over a Local Community Advisory Committee (CAC). This week, committees in Yonkers and Manhattan held public hearings on plans from MGM Empire City and Caesars Palace Times Square.
The committees must vote by 30 September. Without local approval, a bid goes no further, no matter how big the brand.
The state’s decision will come fast
Once bids make it to Albany, the clock will be ticking.
If a proposal passes the local stage, the New York Gaming Facility Location Board will choose its recommendations by 1 December. The state commission will then have 30 days to confirm if each finalist meets the strict licensing standards.
O’Dwyer rejected the idea that any bidder is a “lock” for a licence. “The commission is neither a rubber stamp nor a potted plant,” he said, making it clear that the process will be independent and thorough.
Old violations aren’t always deal-breakers
But they will be examined closely.
O’Dwyer admitted that AML violations don’t automatically block a licence, but under New York gaming law, certain offences, like refusing to cooperate with investigations, official corruption or links to organised crime, are grounds for rejection.
A recent case that could weigh on the process is the $10.5m fine against Resorts World Las Vegas for letting illegal bookmakers gamble. One of them, Matt Bowyer, handled $325m in sports bets from Shohei Ohtani’s former interpreter and lost $7.9m over 80 visits. Bowyer is due to be sentenced on 29 August for money laundering.
A billion-dollar prize for the winners
Licences in New York come with huge rewards and high costs.
Each winning bidder will pay a $500m upfront fee, a record sum in the US casino market. The licences will last for years, giving operators a rare chance to tap into one of the most lucrative markets in the country.
But O’Dwyer’s stance hasn’t changed: money alone won’t win this race. To open a casino in downstate New York, companies will need spotless records, strong compliance systems, and the trust of both the public and the state.
Source: iGaming Business
