New York’s iGaming regulator is charging a $500 million fee for city casino license

Once licensed to operate any of New York state’s three casinos, the operators are required to pay the state at least a $500 million fee for the gambling license, under new rules authorized by the state’s site committee announced Tuesday.

Request for applications:

The filling was revealed by the New York Gaming Board, known as New York’s iGaming regulator, which involves a rating system that will decide the lucky winners of the casino license bids, which will be required to pay a $500 million license fee within 30 days of their official license.

However, competition for a licenses can turn into a real war as competitors can propose a higher license fee and others simply cannot keep up.

In this regard, the sitting board officials said: “An applicant may propose to pay a higher license fee.”

License duration:

The first casino license will last between 10 and 30 years, depending on the investment of the winning bidder. However, the state’s income largely depends on the rating of the bidder’s proposal.

In this regard, according to the sitting board officials “the category of economic activity and business development factors will account for 70 percent of the score of the proposals. That includes capital investment, maximizing state and local revenues, providing the most jobs and creating the highest caliber casino with an array of amenities.

“Workforce development and diversity will account for a combined 20% of the overall score and local siting issues that include mitigating impacts on surrounding neighborhoods account for the remaining 10%.”

Bidding conditions:

However, to be allowed to bid for licenses and the New York iGaming regulator to even review a bidder’s application, applicants must obtain all required local government zoning/land-use permits and get the blessing of the local community advisory board, which involves locally selected representatives.

As it is not known when the community review process may be completed, there’s no set deadline for when a final decision will be made regarding the winners of the casino licenses, according to the sitting board. However, it’s projected that the winners will be publicly announced by the end of the year.

Famous competitors in the race for licenses:

On Tuesday, the consortium proposing the casino for Coney Island officially released a statement saying: “We will submit a bid for one of the licenses. Our group includes Thor Equities, Saratoga Casino Holdings, The Chicksaw Nation and Legends — the entertainment firm co-owned by the Yankees.

“We plan to submit a comprehensive casino, hotel and entertainment proposal for Coney Island — fueled by private, not taxpayer, investment — to provide an economic boost for southern Brooklyn by creating permanent local jobs for residents.

“For more than a generation, Coney Island has been waiting for a year-round economy that creates not just jobs — but careers. Our partnership is unique, combining unrivaled gaming expertise, an unsurpassed track record in entertainment, and a commitment to serving the local community like no other. We look forward to submitting our bid and setting a new standard in economic revitalization and resiliency for New York.”

In addition to the consortium, Genting/Resorts World and MGM’s Empire City, the legal owners of the slot parlors at Aqueduct racetrack in Ozone Park and the Queens and Yonkers racetrack, are predicted to submit bids to add table games to their offerings.

Steve Cohen, owner of the Mets has shown direct interest in a casino near the team’s Citi Field in Willets Point, Queens. He also plans to build a 25,000-seat professional soccer stadium there.

Other notable contenders include the Steve Ross-Related Companies/Wynn Resorts alliance for Hudson Yards and the SL Green/Caesars Entertainment union for the Times Square casino.