What's happening
This bill prohibits state and local governments, authorities, and development agencies from providing financial assistance or incentives to gaming facilities.
Why it matters
Removes a major source of public funding and incentives for gaming facilities. , meaning casinos and similar establishments would need to rely entirely on private investment, potentially reducing their rapid expansion or influence over local development decisions.
Defines "financial assistance" broadly. , including not just direct cash grants or loans, but also tax breaks, below-market land sales, and any other incentives aimed at supporting large business relocations or expansions—making the prohibition comprehensive and difficult to circumvent.
Prevents local and state authorities, including development agencies and public benefit corporations, from offering support. , which could shift economic development resources toward other industries or projects, possibly changing local development priorities and debates.
May impact the attractiveness of New York for new or expanding gaming operations. , as the lack of public subsidies could make projects less financially viable compared to states or regions that offer such incentives, potentially affecting local job creation, tax revenues, or community impacts tied to gaming operations.
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Who cares
Casino developers and license applicants
The bill would bar counting state or local financial assistance toward required minimum capital investment in gaming facilities authorized under article thirteen.
Industrial development agencies
The bill would prohibit these agencies from providing financial assistance to gaming facilities authorized under article thirteen.
Public authorities, public benefit corporations and local development corporations
The bill would prohibit them, including their subsidiaries, from providing covered gaming facilities with assistance such as economic development tax incentives, below-market public property transfers, grants or loans.
Headline styles
Stop Subsidies for Casinos
Plain English, a few words. Used as the page title.
Sponsors
No co-sponsors yet.
History
- Referred to racing, gaming and wagering
- Referred to racing, gaming and wagering
Full text
2 pagesUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
2727
2019-2020 Regular Sessions
IN SENATE
January 29, 2019
Introduced by Sen. KRUEGER -- read twice and ordered printed, and when printed to be committed to the Committee on Racing, Gaming and Wagering
AN ACT to amend the racing, pari-mutuel wagering and breeding law, the general municipal law and the public authorities law, in relation to a prohibition of certain financial assistance to gaming facilities
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision 1 of section 1315 of the racing, pari-mutuel wagering and breeding law, as added by chapter 174 of the laws of 2013, is amended to read as follows:
1. The board shall establish the minimum capital investment for a gaming facility by zone and region. Such capital investment shall not include any financial assistance as defined in section thirteen hundred one of this article from the state, any state or local authority, including without limitation local development corporations, or any political subdivisions of the state. Such investment shall include, but not be limited to, a casino area, at least one hotel and other amenities; and provided further, that the board shall determine whether it will include the purchase or lease price of the land where the gaming facility will be located or any infrastructure designed to support the site including, but not limited to, drainage, utility support, roadways, interchanges, fill and soil or groundwater or surface water contamination issues. The board may consider private capital investment made previous to the effective date of this section, but may, in its discretion, discount a percentage of the investment made. Upon award of a gaming license by the commission, the applicant shall be required to deposit ten percent of the total investment proposed in the application into an interest-bearing account. Monies received from the applicant shall be held in escrow until the final stage of construction, as detailed in the timeline of construction submitted with the licensee's
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD08886-01-9
S. 2727 2
application and approved by the commission, at which time the deposit plus interest earned shall be returned to the applicant to be applied for the final stage. Should the applicant be unable to complete the gaming facility, the deposit shall be forfeited to the state. In place of a cash deposit, the commission may allow for an applicant to secure a deposit bond insuring that ten percent of the proposed capital investment shall be forfeited to the state if the applicant is unable to complete the gaming facility.
§ 2. Section 1301 of the racing, pari-mutuel wagering and breeding law is amended by adding a new subdivision 18-a to read as follows:
18-a. "Financial assistance". Financial assistance means: (a) tax expenditures given as an incentive to recipient businesses, not-for-profit organizations and government entities for economic development purposes;
(b) disposition of any publicly owned property for less than fair market value, which shall be determined based on an independent assessment accounting for the highest reasonably projected gaming facility revenues;
(c) grants or loans awarded by all state and municipal granting bodies and industrial development agencies to businesses, not-for-profit organizations and government entities for construction or operation of a gaming facility; and
(d) all successor and subsequent development assistance programs and tax expenditures designed to promote large business relocations and expansions.
§ 3. Section 862 of the general municipal law is amended by adding a new subdivision 3 to read as follows:
(3) No financial assistance of the agency shall be provided to any gaming facility authorized pursuant to article thirteen of the racing, pari-mutuel wagering and breeding law.
§ 4. The public authorities law is amended by adding a new section 2879-d to read as follows:
§ 2879-d. Financial assistance to gaming facilities; prohibition. Every public authority and public benefit corporation shall be prohibited from providing any financial assistance as defined in section thirteen hundred one of the racing, pari-mutuel wagering and breeding law to any gaming facility authorized pursuant to article thirteen of the racing, pari-mutuel wagering and breeding law. For purposes of this section, "every public authority and public benefit corporation" shall include subsidiaries and local development corporations. Provided further that the provisions of this section do not grant or diminish any power or right to review or approve contracts beyond or from that which the comptroller may have pursuant to his or her authority to supervise the accounts of public authorities.
§ 5. This act shall take effect immediately.
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the racing, pari-mutuel wagering and breeding law, the general municipal law and the public authorities law, in relation to a prohibition of certain financial assistance to gaming facilities
Purpose or general idea of bill
Prohibits Class III gaming facilities from using financial assistance, as that term is defined in the bill, when calculating the minimal capi- tal investment necessary to receive a gaming license in the state.
Summary of specific provisions
Section one amends subdivision one of section 1315 of the RPWBL law to add new language prohibiting the use of financial assistance in calcu- lating the minimum capital investment necessary to receive a class III gaming license from the state.
Section two amends section 1301 of the RPWBL to define the term "finan- cial assistance."
Section three adds a new subdivision three to section 862 of the General Municipal Law to prohibit financial assistance to class three gaming facilities in the form of tax breaks or incentives.
Section four amends the Public Authorities Law by adding a new section 2879-d prohibiting assistance to gaming facilities by public authorities and public benefit corporations.
Justification
This bill prohibits private companies that apply for a Class III casino gaming license from seeking state or local assistance - including tax incentive programs, PILOT payments, or other tax breaks - when calculat- ing the amount of capital investment that must be made as part of the project. The bill also explicitly amends the Public Authorities law to prohibit the issuance of tax breaks or other financial incentives to companies authorized to construct class III gaming facilities by public benefit corporations or their subsidiaries.
Several years ago following approval of a constitutional referendum to permit casino gaming New York authorized the construction of up to seven casinos throughout the state. Enabling legislation authorized casino gaming along with the associated construction of new casinos in stages. The first four casinos have either opened or are under construction. The remaining three casino licenses cannot be issued for several more years pursuant to state law.
At the time the enabling legislation was drafted it was not contemplated that many of the companies seeking these licenses would turn to local and state authorities for tax abatements on various parts of each indi- vidual project. However, several casinos applied to local Industrial Development Agencies for - and received - financial assistance. Taxpay- ers should not be on the hook subsidizing casino construction through tax abatement requests. This bill would prohibit these requests in the future and make it explicit that companies should be fully capitalized and have the funds necessary when applying for a casino license.
Prior legislative history
2017-18: S.6919 -Racing & Wagering
Fiscal implications
Potential to prevent loss of tax revenue to local municipalities by prohibiting casinos to use these financial assistance programs
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.