Bally’s New York casino rezoning clears state legislature
On Friday afternoon, the New York state senate and assembly passed rezoning legislation essential for a Bronx casino proposal from Bally’s Corp, which hopes to secure one of three available downstate licences.
Senate Bill S7049A, sponsored by Senator Nathalia Fernandez, passed the senate with a 55-4 vote first, with the corresponding Assembly Bill 7514 from Assemblyman Michael Benedetto passing that chamber 132-2 in the afternoon.
Bally’s is now a signature away by Governor Kathy Hochul from clearing the hurdles necessary to submit a bid by the 27 June deadline. Things moved quickly for Bally’s, as the New York City Council only approved the rezoning on Tuesday. New York’s unique “home rule” system made it so that the council needed to approve it before the state.
The operator is proposing a $4 billion casino-resort on its Bally’s Links golf course in Ferry Point, a stone’s throw from the Whitestone Bridge. In recent months the bid has received some local criticism for its connection to US President Donald Trump – Bally’s purchased the course from the Trump Organisation in 2023, with an additional $115 million payout clause should the project be granted a casino licence.
Ultimately this criticism did not hinder progress, with three key votes secured in quick succession. Bally’s did not immediately respond to a request for comment.
Time running out
As New York’s bid deadline approaches later this month, its years-long licensing process is starting to round into shape.
A field of at least 11 comprehensive bids announced originally has been whittled to eight. Of those, only two are ready to submit right now, those being a pair of existing racinos in Yonkers and Queens. Steve Cohen’s Metropolitan Park proposal, also in Queens, and now Bally’s Bronx proposal, have had requisite zoning bills clear the state legislature but still need approval from Hochul.
While Hochul made an appearance at last weekend’s Belmont Stakes, her office denied an interview request from iGB.
All three bids in Manhattan – Caesars Times Square, Silverstein Properties’ Avenir and Soloviev Group’s Freedom Plaza – are undergoing environmental review processes. These must be completed by 30 September, per the state gaming commission.
Lastly, The Coney proposal in Coney Island (Brooklyn) from Thor Equities and other partners is perhaps the most at risk. That project also needs council approval for a de-mapping application. A public hearing was held on the subject Thursday by the council’s Subcommittee on Zoning and Franchises. Dozens of local figures and residents voiced both support and opposition for the project, but the item was tabled without a vote.
As of Friday evening, the next subcommittee meeting is scheduled for 26 June, one day before the state’s application submission deadline.
Staying busy
For Bally’s, the advancement of its New York casino quest is just one of several ongoing projects. The company is racing to complete its $1.8 billion permanent Chicago casino, which must open by September 2026. Construction recently resumed after being halted by state regulators over an investigation regarding unapproved contractors.
Additionally, the company is mulling plans for its site on the Las Vegas Strip, next to the ballpark being constructed by the Las Vegas A’s. Bally’s imploded the Tropicana last October to make room for the park. In exchange, it was granted the right to build a new property on the plot’s remaining acreage. There have been few details since then on the company’s plans, aside from sample renderings released shortly after the implosion that were not finalised.
Bally’s in April also acquired embattled Australian operator Star Entertainment in a AU$300 million deal alongside Star shareholder Bruce Mathieson. The two investors have already transferred a AU$100 million tranche to Star and await approval for the remaining amounts. Star is slated to hold a shareholder vote on 25 June. At the same time, the company is in the middle of federal AML proceedings and could face hundreds of millions in fines from watchdog AUSTRAC.
Bill comes due
As for New York, there are questions as to whether Bally’s can afford such a venture, even if selected. The Chicago project, although much cheaper, required a funding agreement with Gaming and Leisure Properties (GLPI). Bally’s sold and leased back several land parcels to GLPI as part of the agreement, including property in both Chicago and Las Vegas.
In Q1, the company reported cash reserves of $209 million and total debt of $3.43 billion. The figures did not take into account any funds for the Star acquisition, which was announced afterward. Bally’s stock closed Friday at $9.24, down about 2.6% on the session. Its share price has dropped more than 50% year to date.
A New York casino would be especially costly, and quickly so, as Bally’s would need to pay an upfront $500 million licence fee. The $115 million added kicker to the Trump Organisation would increase the pre-construction costs to over $600 million.