New York Statewide Rule
New York Sets Zones for Commercial Casino Licensing
Key Facts
- Zone One counties
- NYC, Nassau, Putnam, Rockland, Suffolk, Westchester
- Zone One initially
- Barred from any casino license request
- Initial licensing regions
- Zone Two Regions One, Two, and Five only
- Original statewide cap
- No more than four licensed entities (§1306)
- Current statewide cap
- Seven entities; up to three now in Zone One
- Governing law
- Racing, Pari-Mutuel Wagering and Breeding Law art. 13
- Regulator
- New York State Gaming Commission
Summary
New York's Upstate Gaming Economic Development Act divides the state into two casino development zones. Zone One is New York City plus Nassau, Putnam, Rockland, Suffolk, and Westchester counties. Zone Two is every other county. Racing Law §1312 barred the state gaming board from issuing any commercial casino license request in Zone One and confined the first four licenses to Zone Two's Regions One, Two, and Five.
Sec. 1310(1): "There are hereby created two development zones to be known as the zone one and zone two. Zone one shall include the city of New York and the counties of Nassau, Putnam, Rockland, Suffolk and Westchester. Zone two shall include all the other counties of the state." Sec. 1312(1): "The board shall issue within ninety days of a majority of members being appointed a request for applications for a gaming facility license in regions one, two and five in zone two; provided, however, that the board shall not issue any requests for applications for any region in zone one under this title; and further provided that the board shall not issue any requests for applications with respect to any gaming facility subsequently legislatively authorized until seven years following the commencement of gaming activities in zone two, unless such request for application...adheres to the procedure as described in section one thousand three hundred eleven of this title."
Full Breakdown
The Upstate New York Gaming Economic Development Act (Racing, Pari-Mutuel Wagering and Breeding Law art. 13) created two casino development zones. Racing Law §1310(1) draws Zone One as New York City and Nassau, Putnam, Rockland, Suffolk, and Westchester counties; Zone Two is every remaining county. §1310 further splits each zone into numbered regions, three in Zone One, six in Zone Two, grouped by county.
Siting is not open statewide. §1312(1) required the Gaming Facility Location Board to solicit casino applications only in Zone Two's Region One (Columbia, Delaware, Dutchess, Greene, Orange, Sullivan, Ulster), Region Two (Albany, Fulton, Montgomery, Rensselaer, Saratoga, Schenectady, Schoharie, Washington), and Region Five (Broome, Chemung, Schuyler, Seneca, Tioga, Tompkins, Wayne). The same subdivision expressly barred any request for applications "for any region in zone one under this title." §1306 originally let the board advance no more than four entities to the Gaming Commission; that produced the state's first four commercial casinos: Rivers Casino & Resort in Schenectady (Region Two), Tioga Downs Casino Resort in Tioga County and del Lago Resort & Casino in Seneca County (both Region Five), and Resorts World Catskills in Sullivan County (Region One).
§1312(1) also froze any additional legislatively authorized casino for seven years from the start of Zone Two gaming, unless the request followed the separate procedure in §1311. Once that window closed, the legislature amended §1306 to raise the statewide cap to seven entities while capping Zone One itself at no more than three facilities, opening the door to downstate casinos for the first time. The Gaming Facility Location Board and the New York State Gaming Commission jointly administer licensing; the Commission issues the final license after the board's regional siting process runs.
Violations & Penalties
Operating a casino outside a Gaming Commission-issued license is unlicensed gambling under Penal Law Article 225: a misdemeanor for a first offense and a felony for a business that profits from it. A licensee that violates its regional siting conditions risks suspension or revocation of its Racing Law article 13 license by the Gaming Commission, plus civil penalties and disqualification from future gaming-facility requests for applications statewide.
Frequently Asked Questions
Can a casino be built anywhere in New York?
Why couldn't New York City get a casino under the original law?
Which regions actually got the first four casinos?
What happens if a casino operates outside its licensed zone or region?
Sources
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