After several months of waiting and guessing, casino companies and interested parties finally have some of their answers about New York’s upcoming casino licenses. In a 103-page document dubbed Round 1 – Questions and Answers, the New York Gaming Facility Location Board addressed some of the hot questions.
Going over a whopping 613 questions, the board provided some clarity on the subject. For reference, the original questions were submitted back in February.
Questions range in importance but some of them answer some of the hottest questions about the licenses. The board, for example, said that a license fee would be at a minimum of $500 million. It added that applicants can submit a higher sum if they wish. In addition, the document says that a facility must cost at least $500 million to build.
The board also clarified that licenses can vary in validity up to a maximum of 10 years. The length of a license, as well as other terms, will depend on the value of the applicants’ proposals compared to those of their competitors.
Another major confirmation is that the three recipients of the downstate casino licenses will be allowed to incorporate a sportsbook into their property.
Companies Have a Month to Read the Answers and Submit More Questions
Casino companies interested in grabbing one of New York’s three available casino licenses now have around a month to read through the New York Gaming Facility Location Board’s answers to their questions. During that time, casino companies can also pose a second round of questions.
By October 6, casino operators can ask additional questions and demand clarifications on the answers in the Round 1 document. Following that the board will return to answering questions. However, the body provided no indication as to when Round 2 – Questions and Answers may be released.
The New York Race Is as Heated as Ever
Casino companies are likely to spend hundreds of millions, if not billions, of dollars during the race for a casino license. In addition to the license fees and minimum facility costs, companies will also have to spend money on promoting their projects over those of their competitors.
Despite the difficulties, many companies consider New York to be a “worthwhile prize” because of the myriad of opportunities it provides. Because of that, Silverstein and Greenwood entered the race two months ago.