From Entertainment to Gaming Licenses: Why Barry Diller’s Political Moves Matter for the Casino Industry

The influence of Barry Diller on future gaming licenses in New York City is a compelling development in the industry. In a surprising political turn that could reshape the citys regulatory landscape, MGM Resorts International board member Barry Diller has publicly endorsed former New York Governor Andrew Cuomo for the New York City mayoralty. This endorsement is reportedly rooted in Cuomo’s instrumental role in developing the acclaimed Little Island project, a feat that has industry leaders hopeful he could similarly navigate the complex bureaucracy surrounding urban development and the acquisition of critical gaming licenses for future hospitality and entertainment expansions in the city.

During a recent gathering of IAC/InterActiveCorp (IAC) staff, Diller praised Cuomo, specifically highlighting the enhancements made to Little Island. Although the meeting was intended to be off-the-record, a recording was obtained by the media outlet, Semafor.

He was quoted saying, “I owe him gratitude for that (Little Island), so I am supporting him.” This project, which transformed a previously rundown pier along the Hudson River into a vibrant green space, was opened to the public in May 2021. Cuomo, who was the governor at that time, played a pivotal role in ensuring the project’s swift progress through New York’s often sluggish bureaucratic processes.

Insights into MGM and Gaming Prospects

Diller’s IAC happens to be the largest stakeholder in MGM, holding approximately 22% of the casino company’s outstanding shares. In a recent earnings call, Diller hinted at the possibility of IAC increasing its investment in MGM, describing it as a “forever asset.” This suggests a strong belief in the long-term growth potential of the gaming industry.

MGM is currently in the running for one of three coveted downstate gaming licenses that New York regulators are set to award soon. MGM’s Empire City Casino, located in Yonkers, is widely regarded as a front-runner for one of these licenses.

While Cuomo’s governorship was marked by a hesitance to expedite the establishment of additional gaming venues in the metropolitan area, it was during his tenure that the state officially legalized mobile sports betting. New York has since emerged as the largest market for sports betting in the country.

It remains uncertain whether Diller touched upon MGM’s aspirations in New York during the IAC meeting, nor is it clear how Cuomo’s stance on gaming establishments might evolve if he becomes mayor. However, one undeniable fact is that MGM’s acquisition of Empire City in 2019 has significantly contributed to state revenues, generating approximately $5 billion in receipts.

Barry Diller: A Political Figure

Notably, Diller is not shy about expressing his political views. As a prominent donor to the Democratic Party, he has a history of advocating for political candidates and voicing criticism toward various political dynamics. Last year, he publicly criticized The Washington Post for not endorsing a candidate during the presidential election.

Previously, he was among several Democratic patrons who suggested that if Vice President Kamala Harris were to win the presidency, she should consider dismissing FTC Chairwoman Lina Khan. This recommendation arose amid an investigation by the FTC into MGM following a major cybersecurity breach. Diller’s concerns regarding Khan reflect a broader worry that the commission has become overly aggressive and adverse to business interests. Notably, the FTC has since concluded its inquiry into MGM.

According to the recording obtained by Semafor, Diller conveyed his dissatisfaction with the current direction of the Democratic Party, suggesting that “things have to get worse before they get better.”

Conclusion

Barry Diller’s endorsement of Andrew Cuomo marks a notable moment in New York’s political landscape, linking significant philanthropic efforts with potential political support. As the landscape of gaming in New York evolves, the interplay between political leadership and corporate investment will be critical in shaping the future of the city’s economic health and entertainment options.