Bally’s Stock Falls on New York City Casino Proposal OK. It Will Owe Trump $115 Million.

New York City moved another step closer to having three casinos. (David Becker/Getty Images)

Key Points

• New York State Gaming Facility Location Board recommends three new casinos, including Bally’s, Resorts World, and a Hard Rock/Steve Cohen venture.
• Bally’s will pay the Trump Organization $115 million as a “deferred purchase price mechanism” for a golf course lease acquired in 2023.
• The board determined that awarding all three licenses best advances the state’s long-term economic, fiscal, and community objectives.

New York City moved another step closer to getting three casinos on Monday—and President Donald Trump is one of the big winners.

At a public hearing, the New York State Gaming Facility Location Board recommended approval for Bally’s proposed casino in the Bronx, Resorts World’s expanded site in Queens, and another Queens proposal backed by Hard Rock and hedge-fund manager Steve Cohen.

Bally’s stock rose 10% in early trading Monday before retreating. At last check, shares were down 2.6%.

If licensed, Bally’s will have to pay $115 million to the Trump Organization, the president’s company, as part of what Bally’s described to The New York Times as a “deferred purchase price mechanism.” Bally’s purchased the lease for the golf course that will be part of the casino complex from the Trump Organization in 2023.

“Our team has worked closely with community leaders, union partners, and local stakeholders to build a project that delivers real jobs, lasting economic benefits, and a world-class entertainment destination for the Bronx,” a Bally’s spokesperson said. “We are grateful for the Board’s confidence and look forward to working with the Gaming Commission as the process moves to its next phase.”

The company didn’t offer specifics on its agreement with the Trump Organization.

The board hearing Monday was the penultimate hurdle for the bidders. The New York State Gaming Commission is now expected to vote on final licensure by Dec. 31.

The trio of casinos emerged as finalists after eight bidders submitted applications for new or expanded casinos to the board in June. The competitors were vying for up to three downstate casino licenses, all of which now look set to be awarded.

“The board determined that awarding all three licenses best advances the state’s long-term economic, fiscal, and community objectives,” said Vicki Been, board chair.

Write to Nate Wolf at nate.wolf@barrons.com