Lobbying Firms Making Millions From New York Casino Race

It is estimated Sheldon Adelson has lost some $8.4 Billion this year

The race to win one of three licenses for a casino in downstate New York has seen a boom for lobbying firms with valuations on money spent upwards of $7 million in just 14 months so far. Indeed according to a report by Politico lobbying firms could be making much more than the official amount and many of those firms are representing more than one casino operator.

Lobbying companies work their influence on lawmakers and direct decision makers in which is a highly lucrative business, Genting is reported to be the biggest spender on lobbying so far with $2.7 million spent and is said to be the frontrunner for a license.

Another highly tipped operator to gain one of the three licenses is MGM Resorts with its already established influence with lawmakers and unions at its current Empire City New York casino.

With the cost of taking part in the race costing $500 million upfront to apply for the license and another $500 million in development a minimum only the big operators are taking part such as Las Vegas Sands, Wynn Resorts, Caesars Entertainment, Bally’s and Mohegan Sun.

But the rewards are big with an estimated $2 billion in annual revenues and operating profits of $600 million a year.

But Politico notes that with such huge sums being mentioned the opportunity for corruption is a real possibility and anyone of the big operators losing out could very well challenge the Gaming Facility Location Board and the final decision maker the Gaming Commission, with legal challenges a certainty whatever the outcome.