As part of their budget plans

NY lawmakers start discussing differences on downstate casino legislation

“Immediately these three licenses – one, two or three – would mean thousands of jobs, construction jobs, union jobs, long-term full-time jobs,” said Sen. Joseph Addabbo, who chairs the Senate Committee on Racing, Gaming and Wagering
2021-03-22
Reading time 2:08 min
The Senate’s budget proposal involves issuing as many as three licenses for casino resorts in the downstate region, while the House’s version does not. After the Legislature Budget Conference Committee met Wednesday, Sen. Joseph Addabbo said the negotiations will start in a position with differences on such issues.

Members of the New York State Legislature Budget Conference Committee met Wednesday for the first time to discuss the differences in their budget plans, some of which involve gambling.

The Senate’s budget plan involves issuing as many as three licenses for casino resorts in the downstate region, while the House’s version does not. Gov. Andrew Cuomo administration hasn’t spoken on the issue recently, but during his state of the state address in January, the governor mentioned seeking requests for information from gaming companies interested in operating a casino in or around New York City.

A recently released study from Spectrum Gaming Group estimates three casino resorts could generate $842 million in new tax revenues by 2025.

NY State Sen. Joseph Addabbo, D-Queens, told The Center Square he’s not worried about the plans not seeing eye-to-eye right now. “That's where conversations and negotiations will start,” said Addabbo, who chairs the Senate Committee on Racing, Gaming and Wagering. “You know, you can imagine a very complex budget of the state. There are many differences on many issues. So, that's okay to be in that position.”

Currently, state gaming law prevents the downstate licenses from being awarded until 2023, which was done before the pandemic to give the four upstate resorts an opportunity to mature. 

New York Yankees President Randy Levine, who previously served as the city’s deputy mayor for economic development, has also supported casinos as an economic booster. Mayoral candidate Andrew Yang has called for building one on Governor’s Island.

“Immediately these three licenses – one, two or three – would mean thousands of jobs, construction jobs, union jobs, long-term full-time jobs,” Addabbo said. “You know, that's what you look for when you’re looking to come out of a pandemic. So, it's not only about revenue, it's about the job growth.”

Both the Assembly and Senate budgets also include mobile sports betting. Their plans look identical, with each casino, including tribal ones, having the chance to partner with two mobile operators. The fee for each mobile license is $12 million, with mobile revenues taxed at 12 percent.

Cuomo, who had long opposed expanding beyond offering sportsbooks at casinos, has warmed to the idea in recent months as the state has sought new revenue streams. However, his proposal has been for the state to control mobile sports betting in a fashion akin to the lottery. The administration believes that model can generate hundreds of millions in revenue for the state. However, Addabbo said smaller states and the District of Columbia have tried that approach with less than stellar results. The proposal from lawmakers is modeled after such states as New Jersey and Pennsylvania. Addabbo said it’s up to the lawmakers to impress upon the administration that that model is better for the state.

 A poll released by the Siena College Research Institute last week shows 51 percent of registered voters back expanding sports betting to allow for online apps. Only 30 percent oppose it, while 18 percent have no opinion.

 

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