New York State voters have passed a proposed Constitutional amendment to authorize casino gaming, after numerous unsuccessful attempts over the years. The execution of the amendment, which involves the procedures for establishing the locations of the casinos and choosing the operators, will commence soon in compliance with the laws passed during the 2013 legislative session (referred to as the “Gaming Legislation”).
The Constitutional amendment permits the establishment of a maximum iplt20 match of seven privately owned casinos throughout the state. According to the Gaming Legislation, the New York State Gaming Commission (referred to as the “Gaming Commission”) has the power to grant a maximum of four licenses for gaming facilities. These licenses are limited to three specific regions in the upstate area: the Catskills, Southern Tier, and Capital Region, which encompasses Albany and Saratoga Springs. Although the Commission has the authority to grant a maximum of two permits in a specific area, it is only allowed to do so in one zone. In addition, the Commission is explicitly forbidden from granting licenses in the downstate zone, which encompasses the City of New York, Nassau, Suffolk, Westchester, Rockland, and Putnam counties. There is a strong expectation that the Commission will grant licenses for two casinos in the Catskill region, and one casino in each of the other two regions.
The Gaming Legislation outlines a complex procedure for determining the location of casinos and selecting the individuals or organizations that will operate them. According to the legislation, the Gaming Commission must appoint a five-member board called the New York State Gaming Facility Location Board (referred to as the “Board”). This Board will carry out a selection process that is considered “competitive” and will adhere to the specific requirements outlined in the Gaming Law. These requirements include assessing the competence and character of applicants, evaluating the level of local support, determining the amount of capital investment commitment (to be determined by the Board), ensuring labor peace, and considering other relevant factors. Furthermore, the Board’s decision on an applicant’s eligibility for a gaming facility license is influenced by three main elements: economic activity and business growth criteria, which carry a weight of 70%; local effect and siting factors, which carry a weight of 20%; and “workforce enhancement” factors, which carry a weight of 10%. Each of these aspects, along with the other prerequisites for obtaining a license, is further separated into multiple distinct criteria, each of which holds its own importance. Therefore, it is essential for a prospective casino operator to have a comprehensive understanding of these prerequisites prior to making a commitment to this procedure. Once chosen by the Board, the selected entities must get a license from the Gaming Commission.
The Governor of New York State has stated that calls for proposals for the casinos will be issued at the beginning of 2014. It is crucial to understand that the legislation stipulates that communication with government officials regarding the siting and selection process would be significantly limited after the request for Betinexchange app proposal process commences. The choosing process is anticipated to endure throughout the most of 2014. The chosen casino operators might obtain an initial license to run the casino for a duration of 10 years. The determination of renewal periods is under the purview of the Gaming Commission. Upon receiving a license, casino operators are given a period of 24 months to begin their gaming operations.
The Gaming Legislation stipulates that casinos are subject to a tax rate of 37-45% on their gross gaming profits generated from slot machines. This rate reflects the existing tax rate on racinos situated in each region. The tax rate applicable to table games is fixed at 10%. The distribution of revenues generated from the operation of the casinos will be as follows: 80% of the funds will be allocated to K-12 education and property tax relief. 10% will be divided equally between the host municipality and the host county. The remaining 10% will be awarded to counties in the host region for real property relief and education.
As previously stated, the Gaming Law explicitly states that the Gaming Commission is forbidden from granting a license for a casino in New York City. Regarding the rest of the downstate area, it is unlikely that a casino will be established until at least seven years after gambling activities begin in the upstate region. Furthermore, the Gaming Law stipulates that Native American tribal casinos that have tax agreements with the State would be granted exclusive rights inside their respective regions. Therefore, it is not permissible to establish any private casinos in certain locations as long as the tax agreements are still in effect.
