A bidding battle for New York Metropolis space on line casino licenses is underway, and New York Gov. Kathy Hochul and the state Democratic Celebration are taking massive donations from the gaming firms and actual property giants growing dear proposals, based on recently-released marketing campaign finance filings.
Previously month, Hochul’s fundraising committee accepted massive donations from the builders behind on line casino bids in Occasions Sq., Hudson Yards, and Coney Island, whereas the state Democratic Celebration acquired a $50,000 donation earlier this 12 months from a on line casino firm hopeful.
The competition for as much as three New York Metropolis on line casino licenses was accelerated by the state price range that was handed by Gov. Hochul and legislators in April 2022, transferring ahead the timeline for starting the method to award the licenses from a 2013 poll measure by one 12 months, to this previous January. The course of, which comes with a $1 million software price, includes a number of phases of overview from a wide range of metropolis and state boards—however the licenses will in the end be awarded by the Gaming Amenities Location Board, a five-member panel whose members are appointed by the Gaming Fee, which is successfully managed by Gov. Hochul.
Since final 12 months, authorities ethics watchdogs have flagged the looks of “pay-to-play” within the course of for the state to award on line casino tasks to well-connected political donors and their Albany lobbying corporations. For instance, hedge fund billionaire Steve Cohen, who along with his spouse donated almost $139,000 to Hochul’s marketing campaign for governor, mingled with Hochul at her January inauguration and lately hosted the governor at a Mets recreation, subsequent door to his proposed on line casino website in partnership with Arduous Rock.
With the applying course of ramping up, extra massive contributions have continued flowing to Hochul from rich earlier donors and actual property executives who’ve on line casino bids within the operating.
Marc Holliday, CEO of actual property firm SL Inexperienced, donated $18,000 to the committee Buddies for Kathy Hochul on June 19, based on state marketing campaign finance information—the quantity that’s the new state restrict for particular person contributions to statewide candidates. With Caesars Leisure, the agency SL Inexperienced is readying a bid for a high-profile Occasions Sq. on line casino to be situated at 1515 Broadway. In February, Caesars Leisure of Las Vegas donated $50,000 to the “housekeeping” account of the New York State Democratic Committee.
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In 2021 and 2022, Holliday donated greater than $69,000 to Hochul’s campaigns, and over these two years, SL Inexperienced founder Stephen Inexperienced of Jupiter, Florida donated a complete of $15,000 to Hochul. The New York Day by day Information lately reported that Holliday and Inexperienced every gave $2,100 to New York Metropolis Mayor Eric Adams’ re-election marketing campaign in Might and June.
Jeff Blau, CEO of actual property enterprise Associated Corporations, donated $18,000 to Hochul on July 13, and partner Lisa Blau, a enterprise capital investor, donated $18,000 on June 27. With Wynn Resorts, Associated is proposing a Hudson Yards on line casino close to the Javits Heart. Final October, Lisa Blau additionally donated $117,300 to the housekeeping account, an obscure pot of funding that’s drawn on by the state Democratic Celebration and has been uncovered in previous years by good authorities teams for enabling massive donors to bypass contribution limits. Lobbying corporations contracted by the venture have proven favor to Hochul lately as effectively: Associated lobbies on actual property points utilizing Nixon Peabody LLP, whose New York State PAC gave $1,000 to Hochul on June 30; Wynn Resorts lobbies on on line casino gaming points utilizing the agency of veteran lobbyist Tonio Burgos, who has given tens of hundreds of {dollars} to Hochul in recent times and kicked $1,000 to the NYS Democratic Meeting Marketing campaign Committee in January.
Sam Gerrity, CEO of Saratoga On line casino Lodge, and Daniel W. Gerrity, whose previous title was president of Saratoga On line casino Holdings, donated $6,670 to Hochul on June 28. The corporate is proposing a Coney Island website alongside the boardwalk with Thor Equities, the Chickasaw Nation, and Legends. The New York Democrats’ housekeeping account acquired $5,000 from Saratoga On line casino Holdings on Might 3.
The New York Publish reported {that a} potential Coney Island website was additionally being eyed by billionaire Republican donor John Catsimatidis, CEO of Gristedes and founding father of the Pink Apple Group conglomerate, who donated $18,000 to Hochul on July 13.
The PAC of slot machine maker Worldwide Sport Know-how gave $5,000 to Hochul on June 1, after beforehand donating a complete of $25,000 to her marketing campaign in October 2021 and January 2022.
Gov. Hochul’s New York Metropolis workplace didn’t reply to a request for touch upon the looks of pay-to-play in accepting marketing campaign money from on line casino license candidates.
Donations from the true property titans behind New York Metropolis on line casino proposals to Hochul and New York Democrats in recent times have totaled effectively into the six figures. Steven Roth of Vornado Realty, who’s behind a midtown Manhattan proposal on the present Lodge Pennsylvania, donated almost $70,000 to Hochul in December 2021, the earlier most. Others bestowing that quantity on Hochul embrace Stephen M. Ross, chair and founding father of Associated Corporations, who additionally gave $117,300 to the housekeeping account on Oct. 19—and whose daughter Jennifer matched in each circumstances. Larry Silverstein, chair of Silverstein Properties, whose agency is readying a proposal on Manhattan’s Far West Facet, along with his partner Klara donated greater than $139,000 to Hochul in January of final 12 months, and gave $25,000 extra to the state Democrats in October.
Gaming large Genting’s PAC donated $47,100 to Hochul, in addition to $55,000 to the New York State Democratic Committee in October and November of final 12 months. Arduous Rock Cafe of Orlando, Florida donated $128,500 to the Dems’ housekeeping committee on June 27, 2022.
“Dozens of actual property and playing executives have been dumping money throughout Governor Hochul—it’s fairly clear they need insurance policies that profit them in return, and it’s fairly clear they’re getting that proper now from Governor Hochul,” stated Michael Kink, government director of the Sturdy Economic system for All Coalition, whose members embrace labor unions like 1199 SEIU and group teams like New York Communities for Change. “The Governor could be more practical and extra in style if she’d battle for insurance policies that assist all New Yorkers, not ones that largely profit billionaires and their firms.”
A report this 12 months from the nonprofit Public Accountability Initiative and the Heart for Well-liked Democracy discovered that Hochul raked in additional than $9.1 million from at the least 394 donors in the true property business. Hochul’s rich backers included the billionaire Ross of Associated Corporations, a Trump marketing campaign fundraiser within the 2020 cycle who additionally funded an excellent PAC that attacked New York Metropolis progressive candidates for workplace in 2021.
The New York Metropolis casinos will open a brand new entrance in competitors with upstate venues like these operated by Delaware North, the Buffalo-headquartered gaming and hospitality firm the place Hochul’s partner, William Hochul, is vp and head counsel. The gaming firm’s compensation supplied two-thirds of the almost $1 million in family earnings for the Hochuls final 12 months.
The official deadline for on line casino purposes might be 30 days from the gaming board’s response to a second spherical of questions, which is anticipated to be this summer time or fall. As soon as a gaming license is acquired, the state requires $500 million in charges per license, amongst different commitments, and can usher in further tax revenues from slots and desk video games.
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