MTA Expected to Receive "Windfall" from Casinos

Three casinos are now in the process of being cleared to operate -- with $$ flowing to the MTA 's Operating Budget
Three casinos are now in the process of being cleared to operate -- with $$ flowing to the MTA 's Operating Budget

DECEMBER 5—A "windfall" is likely coming to the MTA as a result of the approval of three casino licenses in the city, the New York Times reported. If, as expected, the State Gaming Commission issues the licenses by the end of the year, the casinos will pay the MTA $500 million in 2026 and 2027, with an additional $600 million in 2028, the paper said. All of the money must go to operating expenses, which can include employee salaries.

That’s a departure from some of the MTA’s other revenue streams, like congestion pricing, which is dedicated solely to the capital program. Recognizing this, New York State cut the deal with casino companies back in 2023 that directed revenue to the operating budget to prevent fare hikes and service cuts. As of this writing, however, a ten-cent fare hike is still in the cards for early 2026.

The MTA is also looking to save money by further cutting fare evasion—which costs the system $1 billion each year—by using a feature on the OMNY card that allows an enforcement agent to determine if the card was used to purchase a fare. That’s now the standard for most mass transit systems in Europe, where card readers carried by law enforcement can tell whether passengers used their card to pay or jumped the turnstile.

TWU Local 100 fought a decade-long battle against taking cash out of the token booths because we knew that many New Yorkers didn’t have access to credit cards or bank accounts with debit cards. That reality has now changed, with almost everyone having cashless payment options.

NYCT is also looking to expand the existing EAGLE Teams, which operate on Select Buses and ask randomly selected passengers to show receipts, to operate through the entire system, using OMNY card readers to check fare payments. Under a solely electronic system, payment enforcement is now easier.

This method of checking fare payment now joins other NYCT tactics for reducing fare evasion, including the 1,000 gate guards in the system who ensure doors stay closed, metal teeth on the tops of turnstile enclosures, and an fin attached on the turnstile itself to deter leapers. Four tougher-to-beat entry systems are now being piloted in five stations which include transparent polycarbonate and glass. The gates slide open and shut to bar entry.

With a contract fight on the horizon, the news that the MTA will likely receive over $1.5 billion dollars over the next three years to be used for operating expenses is significant. While the MTA recieves the money, it will be our members operating the systems that will get players in the doors of the casinos.