On track to award three casinos licenses by the end of the year

Brian O’Dwyer had a distinguished career in public service advising the Clinton White House during the Northern Ireland peace process and serving as a commissioner of the U.S. National Commission for UNESCO and New York City Human Rights Commission before his appointment to lead the state Gaming Commission in 2022. Since then, O’Dwyer has helped develop the rules and manage the state’s protracted process for awarding as many as three full casino licenses in the downstate region. This interview has been edited for length and clarity.

What are the most critical factors the state will consider when processing applications for the three downstate casino licenses? And what other areas will the commission take into consideration?

Obviously the most important thing that comes to mind here is the economic activity, the business development of the new casino – how it will affect the community, and how it will affect the workplace and will it enhance the overall community in which it is located. That’s going to be critical for the Gaming Facility Location Board.

By statute, the Gaming Facility Location Board is a separate entity. It is created by the Gaming Commission in the sense that we appoint the members of the board, but once the board is established, it’s really on its own and the board issues the (request for application), it develops the criteria, determines the fees and then waits for the various steps to be taken. And in the end, (it) comes up with a recommendation (for) up to three casinos to be licensed in the state of New York.

Once that is done, there’s a separate step where it has to go to the community boards, then it is the recommendation of up to three and no more than three. It then goes to the commission. The commission is not an appellate body in the sense that we are required by law to accept the up to three determinations (by) the Gaming Facility Location Board. We cannot substitute our judgment for their judgment. At that point in time, our job is to determine whether the three recommended entities are fit to be licensed in the state of New York. The criteria set forth in the law is very specific. We have a duty then to go after the nine criteria that are set forth in Section 13-16, the facilities, the licensing, whether diversity in the construction industry and equal opportunity are met within the procedures. If we meet all nine, then, of course, the license will be extended to the entity and we’re off the races.

The bids for one of up to three downstate casinos will be due this summer. Is there any chance the winning bids won’t be selected by the end of the year?

The answer is no. It’s been a long process but I do not perceive anything that will stop us from having the licensing action by Dec. 31.

And to be clear, the commission can award up to three licenses, correct? Could it end up being just one or two, hypothetically?

Oh absolutely, up to three. We could, I suppose, have none theoretically if the Gaming Facility Location Board finds nobody available or if the Community Advisory Committee doesn’t come out. It’s up to three. We could have one, two or three, or we could have none.

Does the process include the right amount of local input? How do you balance trying to have the bids win adequate local support without allowing relatively few individuals from blocking an otherwise quality casino bid?

It’s hard to balance these things. But there are some locations that I know of are very anxious to have a casino in their neighborhood. There are others who can be absolutely opposed to it and think it’s a detriment to their neighborhood.

What the Legislature has done is very clear. They have set up this Community Advisory (Committee), which is a misnomer. Basically when they meet, (they) can exercise a veto over the license. If a Community Advisory (Committee) votes against it, then that’s the end of the application. There’s no appeal from that. So it’s important that the communities in which these casinos are located feel 100% comfortable with having those casinos. The Legislature made it very clear to make sure they don’t want the casino shoved down the throat of any community that doesn’t want them. They relied on the local officials appointing a committee to see that the community is satisfied with the way the casino is being operated and how it is being operated. And at that point in time, the community through its elected representatives is satisfied they want the casino there, the application will move forward.

The common wisdom has long been that two existing racinos, Empire City Casino by MGM Resorts and Resorts World New York in Queens, are favorites to win full-fledged casino licenses. Do you think that’s the case? If they do win, do you have any concern that the process will be seen as rigged?

The process is not going to be tainted. We have appointed (the) Gaming Facility Location Board, independent citizens, and the criteria will be that we will not be taking input from lobbyists or anything of that sort.

The question of the two existing racinos, yes it’s obvious they have certain advantages. They’re existing. They also have disadvantages. Part of the bidding process is to show economic development, which is 70% of the bid. Since they already have existing facilities, the Gaming Facility Location Board will have to weigh whether they have sufficient economic development from existing facilities or whether more development and revenue would come in from putting an existing casino there. They don’t necessarily have a leg up. I would argue that they have advantages and also have serious disadvantages which the Gaming Facility Location Board will have to address.

What can the state do to make sure that the local population can benefit from employment at the sites that win the full casino licenses?

It’s really built into the process here. The Gaming Facility Location Board in its first go-around will be looking at that seriously. As will the Community Advisory Committee. They will be demanding real guarantees on employment and economic use of the local businesses as part of the process.

In addition, a second review will occur by the commission even after the Gaming Facility Location Board meets. It’s our job to ensure there’s equal opportunity in the economic development work in determining a license. It’s a very robust procedure that is built into the process.

What stipulations are in place to ensure that a bad actor does not win a casino license?

Oh there will be a lot. But two real ones. The Gaming Facility Location Board is empowered to conduct criminal background checks of anybody applying for a license, and they will do so. At the same time, assuming those entities pass, once they come to the commission, we will do a separate review. That’s our statutory duty to make sure the potential licensees are suitable to hold a license, and I can tell you we will be extremely rigorous in looking at that. I have already indicated my disquiet about some of the potential bidders on the process for having various infractions in the states in which they operate. I will be looking at all the applicants that come out of the Gaming Facility Location Board to make sure we don’t see any repeat of any of the infractions that some of the potential bidders have run afoul of gaming commissions in other states.

A coalition of organizations known as the Responsible Play Partnership, which includes the state Gaming Commission, state Office of Addiction Services and Supports and the New York Council on Problem Gambling, met last year to address problem gambling in New York state. What are the biggest concerns and priorities as the state moves to grant three new casino licenses downstate? How well is New York doing on that front, and what more should be done, if anything?

The responsibility we have is that there are people who find gambling to be an addiction and have very difficult times maintaining responsible gaming. Frankly, we don’t know enough about it. … In this coming year there will be a huge emphasis on how we combat problem gambling. We’re going to hold meetings with all the stakeholders and address the problem and get a better handle on this.

There’s no question (with) online gambling that there are downsides to that and it is our responsibility to address those downsides as well as the licensing both in terms of the casinos and in terms of online sports betting. I know no one anticipated the explosive growth of sports betting in the state of New York. We’re still grappling with it to be fair. But we want very much to address it in this coming year. We’re quite concerned about what is potentially a very serious problem.

New York set a new record in 2024 for online betting after betters wagered more than $22.6 billion, up from the $19.1 billion from the previous year. Will there be continued growth in 2025?

That’s in the larger context of sports betting right now. As we know, we set a new record for online betting over 20% from the year before. Online betting and gambling in general have provided an enormous benefit to the state of New York, particularly education and it’s fair to say that it’s only going to grow even more. The advantages of, one, providing much-needed funds to education in the state of New York and keeping illegal gambling out of New York.

As more people get involved in it, and more people decide to take a bet, there will be growth in that area. I don’t think anybody anticipated where we are, but it’s logical to think that people who enjoy betting on football playoffs in particular will enjoy betting on the Super Bowl, and there will be more of that in the coming years.

Finally, what’s the state of the horse racing industry in New York? Is it thriving? Is enough being down to ensure the safety of horses and the integrity of the sport?

Yes. Anybody who follows horse racing understands that everything must be done to protect the horses in terms of that. And we’ve engaged in a number of initiatives to protect horses. One of them is the safety of the horses as they race. Our medical director, Dr. (Scott) Palmer, has done a number of studies and we’ve already seen a real diminution of accidents involving horses at the racetracks. A lot of that had to do with the way the tracks are and the surfaces. We’re spending a lot of money, the Zweig Fund is set up by law where we are spending a lot of money (and) Cornell (is) doing a lot of research on accidents and horses and it’s beginning to pay off. The horse racing industry understands that racing cannot continue to exist if we put the equine athletes at risk. Similarly, we are taking increased measures to make sure those horses that can no longer race are given a happy retirement in aftercare facilities.We take particular interest in the health and well-being of the horses and the health and well-being of (New York Racing Association) workers at the track. Overall I’m satisfied with where NYRA is in both aspects.

Belmont will reopen in 2026. I’m told they’re ahead of schedule in the construction. Hopefully that’s correct. It’s going to be very exciting when it opens.