“Say NO to the LVS NY Casino” - Environmental review

“Say NO to the LVS NY Casino” - Environmental review Jan 11, 2024 6:19:46 GMT -5

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Post by Blitz on Jan 11, 2024 6:19:46 GMT -5

Long Island Casino Detractors Want Environmental Review Stopped

Posted on: January 10, 2024,Todd Shriber
www.casino.org/news/long-island-casino-enviro-review-faces-opponents/

Groups opposing Las Vegas Sands’ efforts to build a casino hotel at the site of the Nassau Coliseum in Uniondale, NY want the nearby town of Hempstead to cease an environmental review that could smooth the way for the project.

Nassau Coliseum. The town of Hempstead, NY wants to proceed with an environmental review for a casino project, but opponents are attempting to halt the review. (Image: LongIsland.com)

“Say NO to the Casino,” which has opposed the gaming project from the start, believes that the environmental review should be halted because the transfer of the Coliseum lease to Sands from Nassau County was blocked last month by a New York appeals court. That legal action was brought by Hofstra University — another overt detractor of the casino plan.

In November, the New York State Supreme Court voided the lease transfer, siding with Hoftstra’s claims that the deal violated the state’s open meeting laws. But that court’s appellate division later put that decision on hold. The college brought the suit in April.

“Say NO to the Casino” wants Hempstead to cancel a pair of public comment sessions scheduled for Thursday, Jan. 18 at Long Island Marriott in Uniondale on the basis that the review shouldn’t move forward following last month’s appellate court decision.

Environmental Review Could Be Vital to Long Island Casino Project

Much of Hofstra’s argument against lease transfer centered on the notion that Nassau County officials inked the deal with Sands in backroom fashion while not allowing ordinary citizens to comment on the matter.

Hempstead’s Jan. 18 sessions clearly take a different approach, signaling the casino stakeholders don’t want to provide additional fodder for opponents.

Environmental reviews are essential to any new large-scale gaming project. In the case of Nassau County, the town of Hempstead recently announced it will lead the State Environmental Quality Review Act process for the casino project.

Hempstead believes the lease transfer to Sands is valid and there’s documentation to support that claim, potentially signaling the town has legal standing with which to proceed with the environmental study. Town officials refute claims that the lease transfer was intentionally opaque or purposefully hidden from residents.

Clock Ticking on Long Island Casino Plan

Potentially looming large for Sands’ efforts to win one of the three downstate casino permits are two factors that are linked. New York’s high courts are taking years to hear to environmental cases and it’s possible that regulators there could award the trio of casino licenses in the second half of this year.

Some industry observers believe that timeline is ambitious, but if it proves accurate, it could be problematic for Sands and Nassau County because New York regulators may not be keen on the idea of awarding a license to an operator with pending litigation in state courts. Nassau County Executive Bruce Blakeman, a longtime supporter of the casino plan, said delays could be costly.

“Delay is not an option since the stakes are high and potential loss of billions of dollars in construction and thousands of jobs is not an option,” he said in a statement provided to Newsday.

“Say NO to the LVS NY Casino” - Environmental review Jan 11, 2024 6:31:13 GMT -5

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Post by Blitz on Jan 11, 2024 6:31:13 GMT -5

New York Casino Bidders Could Take On Big Debt if Victorious

Posted on: January 10, 2024, Todd Shriber
www.casino.org/news/new-york-casinos-could-elevate-operators-debt-burdens/

Operators vying for New York City casino permits could take on significant debt to execute those projects if they’re selected by the state.

New York Gov. Kathy Hochul speaks to reporters on June 7, 2023. S&P believes New York casino projects could lead to increased debt profiles for operators. (Image: AP)

That’s according to S&P Global Ratings, which in a new report noted that the gaming companies that procure the three downstate casino licenses in New York could add leverage while their efforts to improve corporate credit metrics could be slowed.

The project sizes range from $2 billion on the low end for expansions or redevelopments of existing properties to more than $5 billion for new developments. However, the leveraging impacts could be 12-18 months away,” noted the research firm.

Expansions and redevelopment would be applicable to MGM Resorts International’s (NYSE: MGM) Empire City Casino in Yonkers and Resorts World New York in Queens. It’s widely believed that those slots-only venues will command two of the three downstate licenses, but for now, that’s just speculation.

New York Casinos Expensive for Multiple Reasons

New York City is one of the last untapped gaming frontiers in the US. State and local policymakers know as much, and they’re likely to leverage that status to extract as much capital from operators for the cash-needy state as possible.

Recent rumors indicate that New York could tap winning bidders for casino permits for as much as $1 billion each in licensing fees, well above the previously expected permitting cost of $500 million.

The $1 billion permit fee doesn’t include operators’ construction costs, meaning pitches such as Las Vegas Sands’ plan for a Nassau County casino hotel and Hard Rock International’s pitch for a gaming venue near Citi Field in Queens could cost as much as $6 billion and $8 billion, respectively.

“We believe New York is unlikely to award licenses before the second half of 2024 and don’t anticipate winning bidders would initiate any material capital spending before 2025,” added S&P. “These developments could take several years to complete given the complexities of building in New York and the likely large scale of the projects.”

Given the current trajectory of the New York casino bidding process, the second half of this year appears optimistic in terms of an announcement on the winning bidders.

For Operators, New York Casinos Have Upside, Downside

For the operators that emerge victorious in the quest for the three downstate licenses, New York could be a short-term pain, long-term gain proposition.

Contenders such as Las Vegas Sands (NYSE: LVS), MGM, and Wynn Resorts (NASDAQ: WYNN) are currently allocating capital to enhancements and new developments in other parts of the world while Caesars Entertainment is actively reducing debt.

Add multibillion-dollar tabs for New York into the mix and the winners there could see debt ratios increase and already fragile credit ratings imperiled. However, that pain could be worth it over the long term because some industry experts believe that when the three New York City casino hotels reach maturity, those venues could generate revenue on par with, or in excess of, the entirety of the Las Vegas Strip.