The high-stakes race for three downstate New York casino licenses took a dramatic turn this week, as Bally’s bid in the Bronx suffered a potentially fatal setback. At the same time, Hard Rock International’s internal controversy could cast a shadow over its Queens bid.
Bally’s and Hard Rock are among eight candidates vying for three highly coveted licenses. The licensing process is in a critical stage, with the final decision expected by the end of the year.
Bally’s Bronx Casino Hopes Could Be Over
On July 14, the New York City Council voted 29-9, with four absentees, to reject Bally’s rezoning application for its project at the site of the former Trump Golf Links at Ferry Point. The decision effectively ends Bally’s hopes for building a $4 billion casino resort.
Republican Councilwoman Kristy Marmorato, whose district includes the potential casino site, introduced a motion to disapprove the project.
Last month, Marmorato was among the Council members voting against Bally’s plan to advance to the state legislature. While the Council initially refused to vote on it, New York City Mayor Eric Adams helped the bid move forward with a last-minute home-rule message.
After the vote, Marmorato said that the developers “came to the table a little too late, with promises too vague and a process too flawed to rebuild the trust that was already lost in our community.”
She added: “This is not real economic development. This is not housing, a hospital or community improvements. It’s a casino.”
Bally’s CEO Soo Kim called the vote “incredibly disappointing,” noting:
“We had met the council member’s ask in terms of what exceptional community benefits they wanted. That ask was moving the goalposts from the prior ask, which we had met as well,” he said. “It’s sort of nutty. What more can we do than meet the ask?”
Without zoning approval, Bally’s cannot advance in the licensing process, which includes multiple hearings by Community Advisory Committees and review by the Gaming Facility Location Board.
Metropolitan Park Bid Faces Unusual Hurdle
While Bally’s appears to be out of the running, another major contender, the $8 billion Metropolitan Park proposal in Queens, backed by Mets owner Steve Cohen and Hard Rock International, could face unexpected turbulence.
On the same day as Bally’s rezoning defeat, Hard Rock announced that it had suspended Senior Vice President Alex Pariente and two other employees amid anti-money-laundering (AML) allegations.
First reported by Casino.org, Pariente allegedly was involved in significant money structuring practices and facilitating questionable gambling activities at Hard Rock’s property in Punta Cana, Dominican Republic.
In one instance, one employee, at Pariente’s direction, took a $100,000 deposit from a Chinese national. She then broke it into 33 separate $3,000 deposits. These actions violated AML regulations.
Hard Rock became aware of the allegations by whistleblower Robert “R.J.” Cipriani, also known as RobinHood702 in gambling circles. Cipriani is a high-stakes gambler and federal informant with a history of exposing compliance failures.
The whistleblower previously flagged similar misconduct at MGM properties, involving then-president Scott Sibella, and later at Resorts World Las Vegas. Sibella’s AML misconduct had cost his career and substantial fines for both operators.
Although Metropolitan Park’s application is considered a strong contender due to Cohen’s political ties, Pariente’s suspension could pose a reputational challenge to the bid.
Regulators will likely scrutinize Pariente’s actions and AML allegations when vetting the license applicants. As part of the licensing process, the New York State Gaming Commission conducts thorough background checks on corporate executives.
Also, while Hard Rock has acted swiftly, rival bidders could seize on the controversy to question the bid’s suitability.