Casino license process may take longer than expected

The proposed $4 billion casino project that is hoping to take over the Nassau Hub has sparked much debate and controversy among residents not just from the community, but all over both counties — where it seems you are either all in, or all out on the idea of a casino.

But this heated issue may a topic of debate for some time to come as there is still no official word on when the Gaming Facility Location Board — the panel created by the state Gaming Commission to oversee the bidding process — will open the 30-day window for companies to bid for one of three downstate casino licenses.

There is also no guarantee that Las Vegas Sands, the company currently bidding for one of the licenses to redevelop the Nassau Coliseum into a multi-billion dollar casino, will be awarded a license either — despite them actively working to obtain a 99-year lease on the property at the Hub.

The lease transfer was originally approved back in April 2023, but has since been voided due to a lawsuit against the county by Hofstra President, Susan Poser, where Judge Sakira Kapoor ruled the county violated both the state's Open Meetings Law and the State Environmental Quality Review Act by failing to give the public sufficient notice about a public hearing in March and did not adequately study the environmental impacts of the casino before the lease transfer was approved.

But despite this ruling, Las Vegas Sands is confident that the outcome will remain the same and they will be re-awarded the lease transfer. However, even if the lease is signed and in their possession, Sands would be unable to operate without that downstate casino license, and the only way they can obtain it as of right now, is to wait.

“I hope they do end up wasting their money,” said Pearl Jacobs, a community activist and member of the Say No to the Casino Civic Association. “we hope that they will not be successful — and if they lose their money — we do not care.

“If this casino moves forward and it does come to fruition, (Sands) will be shaking down residents for billions of dollars, and doing it to the residents who can at least afford it,” Jacobs said.

Las Vegas Sands was unable to be reached for comment.

The crucial next step in the process involves the Gaming Facility Location Board publicly addressing the "second round" of preliminary questions posed by the potential bidders. These questions touch on a wide-variety of topics, such as the required format for the bid submissions, what information is required concerning passive investors, whether the inclusion of reports on sewer and water systems' impacts are necessary, and more.

In addition to answering these companies' questions regarding the bidding, the board is expected to set the deadlines for applicants to secure the two-thirds majority vote from a local “community advisory committee,” such as the Nassau County Legislature that approved the lease transfer — and for potential bidders to resolve any zoning issues.

Potential bidders are eagerly awaiting this phase to begin because once the board answers these questions — the 30-day window for bidding on a license begins.

Contrary to initial expectations, the next round of this bidding phase may not happen until late February or even March, with some speculating that we may not see the actual awarding of casino licenses until next year, according to reports.

Even Gov. Kathy Hochul, in her recently updated financial plan for the state, has chosen a cautious approach by not factoring in casino license fees for fiscal 2024-25, which ends in March of next year. These license fees for each casino winner are expected to be around $500 million in fees, which would make the state a total over $1.5 billion off the three available licenses.

During the State of the State address on Jan. 9, Hochul also indicated that she intends to take this surge in revenue from the licenses and use that money to help fund downstate transit by investing it into the Metropolitan Transportation Authority.

But in the meantime, Sands and other bidders, like Hard Rock International who are pushing for their own casino across the border in Queens, will have no choice but to wait for the Gaming Facility Location Board to begin that "second round.”

Nassau County Executive Bruce Blakeman did not respond to the Herald’s request for comment.