If Bally’s Wins Bronx Casino License in Casino Development, Trump Gets $115M Windfall

Potential payment included in agreement to acquire golf course operating rights
Bally’s bought lease rights for Ferry Point course in 2023

If Bally’s is able to secure a casino license in the Bronx, the subsequent casino development would result in a substantial $115 million payment to the Trump Organization, which previously managed the golf course where Bally’s plans to build its casino hotel.

In late 2023, Bally’s entered into an agreement with the Trump Organization, controlled by Trump’s sons, to obtain the lease for Trump Golf Links at Ferry Point. Initially thought to be a $60 million purchase, the contract included a clause mandating an additional $115 million payment if a gaming venue is established at the site.

According to a June 2023 letter from Donald Trump Jr. to Bally’s then President George Papanier, Bally’s has committed to pay this sum upon receiving a non-appeal Gaming License (referred to as a ‘Gaming Event’).

Bally’s further agrees that if awarded a non-appealable Gaming License, it shall make a separate non-refundable payment to Trump in the amount of $115 million,” noted the letter.

Politicians from the Bronx and New York City celebrated Bally’s action to remove Trump’s name from the golf course in January 2024.

If Bally’s Wins Bronx Casino Bid, it Must Pay Trump Quickly

Rhode Island-based Bally’s is competing with eleven other applicants for three downstate casino licenses. If successful, Bally’s must promptly pass the $115 million payment to avoid significant interest penalties.

Trump Jr.’s communication with Papanier specified that the gaming company has ten days to process this payment after a ‘Gaming Event’ occurs. Failure to deliver the payment results in a 10% annual interest penalty, calculated based on the days elapsed since the due date.

This particular letter has a notable past; it was cited as evidence during the state’s suit against President Trump, alleging he inflated the value of Trump Organization assets to negotiate superior loan conditions.

Before Trump won the 2016 presidential election, an agreement was reached to extend the lease of Ferry Point by an additional twenty years. However, after the January 6, 2021, riot at the US Capitol, then-New York Mayor Bill de Blasio endeavoured to terminate the city’s agreement with Trump’s company. In April 2022, a Manhattan Supreme Court judge ruled that de Blasio exceeded his authority, permitting the golf course to stay under Trump’s management.

Positive Signs for Bronx Casino Initiative

Though competition for the three downstate licenses is intense, and there exists some opposition against a Bronx casino, supportive momentum is building.

Recently, Senator Nathalia Fernandez and Assemblyman Mike Benedetto—Democrats representing the golf course area—introduced legislation to potentially rescind the property’s parkland designation. Altering this classification is essential for Bally’s to pursue a gaming license.

Moreover, Bally’s has indicated intentions to offer up to a 10% equity stake in the Bronx casino hotel to local residents, signalling a commitment to community involvement!

Key Takeaways

If Bally’s wins the Bronx casino license, it will pay Trump $115 million.
Politicians have welcomed the removal of Trump’s name from the golf course.
Bally’s has until ten days after a gaming license is awarded to pay, or it faces penalties.
Efforts to strip the parkland designation could enable the casino project to proceed.
Bally’s plans to involve the community by selling a stake in the venture.

Summary: Should Bally’s secure the Bronx casino license, it will trigger a significant $115 million payment to the Trump Organization linked to an earlier lease agreement. The unfolding events illustrate the intertwined dynamics of political support, community engagement, and corporate interests in New York’s evolving casino landscape.