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New York unlikely to pass budget on time

Prospects for New York passing its budget by Friday’s state-mandated deadline grew dim late Thursday afternoon after Gov. Kathy Hochul issued a statement updating where talks stood on the spending plan.

In a three paragraphs message, Hochul noted it’s a “critical time” as the state’s economy continues to recover from the COVID-19 pandemic that started more than two years ago. There are a number of issues that need to be addressed, including public safety reforms, that she is working on solutions with Senate Majority Leader Andrea Stewart-Cousins, D-Yonkers, and Assembly Speaker Carl Heastie, D-Bronx.

“We are getting closer to agreement, with consensus on major policy items,” Hochul said.

“New Yorkers should know that progress is being made and that we will put in the time it takes to reach an agreement that delivers for them and moves our state forward.”

New York’s budget is supposed to be passed by April 1, the start of the fiscal year in the state. It does not always happen; last year’s plan was not finalized until April 6.

One topic the budget is likely to include is expanded gambling.

Hochul included three casino licenses in her budget proposal, and the state Senate included them in its version. The Assembly did not, but a key lawmaker said leaders from that chamber are “engaged” in discussions to include the licenses.

“I think it’s a good step for us,” state Sen. Joseph Addabbo told The Center Square. “I am optimistic at this point.”

Addabbo, a Queens Democrat, chairs the Senate Committee on Racing, Gaming and Wagering.

A decade ago, New York voters approved a constitutional amendment to allow commercial casinos. The plan was for four upstate casinos to open first, with the licenses for three downstate properties to become available seven years later.

That would be next year. However, due to the impact COVID-19 has had on the New York City area – and in particular, the region’s hospitality and construction sectors – Addabbo and Assemblyman Gary Pretlow, the Mount Vernon Democrat who chairs that chamber’s Racing and Wagering Committee, have pushed for the licenses to be issued this year.

The two lawmakers and other key downstate political and business leaders have supported giving two of the licenses to existing venues: the Empire City Casino in Yonkers and Resorts World New York City in Queens. Both facilities host thousands of video gaming machines that differ somewhat from the Las Vegas-style slot machines available at New York’s upstate casino resorts. Also, neither Empire City nor Resorts World can offer live table games. Getting a full casino license would allow them to expand to offer those.

Representatives from the operators of both properties – MGM Resorts International for Empire City and Genting Group for Resorts World – have openly expressed interest in upgrading their venues.

New York City Mayor Eric Adams told reporters Wednesday that he wants to see the Big Apple get two of the three casino licenses, saying that the billion-dollar developments would give the city’s tourism industry a boost.

Besides the casino licenses, New York’s budget may include additional licenses for mobile sports betting operators. Last year’s budget opened the door for mobile wagering. Since the first apps launched on Jan. 8, New York has broken wagering records and established itself as the top market in the country.

Through March 20, more than $4.35 billion has been wagered in New York, and the state has raised $153.3 million from the 51% tax on gross gaming revenues.

Both Pretlow and Addabbo have proposed expanding the number of sports betting licenses in the state. In exchange, the tax rate would likely drop.

In an interview with The Center Square, Addabbo said the move must serve the state and bettors well.

“By increasing the number of operators and even maybe tinkering with the tax rate, we should only consider doing that if it makes fiscal sense for the state and to improve the product for the consumer in New York,” Addabbo said. “If it does not, then we should not move forward with that.”

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