The competition for a casino license in New York City could deliver a substantial financial boon to Donald Trump, with the potential to win a $115 million payout.
The former president could reap significant rewards if Bally’s Corp. secures one of the three coveted gaming licenses to establish a casino at a city-owned golf course, once managed by Trump’s enterprise.
In 2023, Bally’s purchased the operational rights to the 18-hole golf course located in the Bronx for $60 million, a deal transferring control from Trump’s organization to the gaming company. This course, nestled along the East River near where it converges with Long Island Sound, was previously marked by the prominent “Trump Links” signage, now removed and replaced with Bally’s branding of the course as Bally’s Golf Links at Ferry Point.
An intriguing facet of this arrangement is a secondary agreement, stipulating that Bally’s would pay Trump an additional $115 million, should they succeed in acquiring a casino license for the location. This potential nonrefundable payment is outlined as a “gaming event fee” in correspondence that surfaced during a trial examining allegations against Trump related to inflating asset values on financial statements to financial institutions.
Despite requests for more details, Bally’s has declined to provide further comments.
The casino licensing contest has drawn at least 11 contenders, aiming to develop what could be New York City’s inaugural full-service casino. Among these competitors are illustrious brands and entities: Caesars Palace with a Times Square proposal, the proprietors of Saks Fifth Avenue eyeing a luxurious Manhattan location, and Steve Cohen, New York Mets’ owner, suggesting a casino near the team’s stadium in Queens. Other imaginative plans include casinos near Coney Island’s boardwalk, at a former Long Island home of the New York Islanders, or in newly envisioned Manhattan skyscrapers.
Meanwhile, two other applicants propose enhancing current ventures. MGM Resorts seeks to uplift its Empire City racino in Yonkers, while Genting hopes to tremendously expand its Resorts World racino beside the Aqueduct in Queens, both restricted by law to machine-based gaming activities.
The Trump Organization has not responded to queries regarding this situation.
It remains uncertain how Trump’s association with one bidder could impact the due process.
The application phase for prospective casino developers is due to conclude by late June, requiring initial evaluations by community advisory entities composed of appointed officials from the state, local government, and the governor’s office. These committees are tasked with considering public sentiment. Subsequently, the state’s gaming board will review proposals, targeting year-end to finalize licensing decisions.
Applicants face additional requirements for zoning and land-use approvals. A legislative nod might be necessary for Bally’s to install their casino on public parkland.
Federal authorities hold no sway over the state’s licensing determinations.
Trump’s reputation, fraught with disfavor from numerous New York public figures who possess the authority to influence the licensing route, could potentially disadvantage Bally’s application. Moreover, these factions might leverage Trump’s financial interests in negotiation.
Governor Kathy Hochul has previously been at odds with Trump-led federal policies, spanning immigration to infrastructure funding, and Mayor Eric Adams continues to navigate political pressures amid his policy positioning in relation to Trump.
Trump initially gained control over the Ferry Point course in 2012, following the city’s substantial $120 million investment to craft a Jack Nicklaus-designed golf venue envisioned to mirror storied courses like California’s Pebble Beach. Yet, the ambitious projections of hosting major championships never materialized.