Trump will get $115 million if New York builds a casino in the Bronx
When the Trump Organization sold its interest in a public golf course in New York City to Bally’s, the deal was freighted with symbolism.
Bally’s promptly erased the giant “Trump Links” sign from the property in the Bronx by the Whitestone Bridge. The ceremony in 2024 gave the impression that the Bally’s bid was completely separate from the Trump Organization. But the two in fact remain intertwined.
If Bally’s were to win a casino license, it would have to pay the Trump Organization $115 million, according to the companies’ purchase agreement. That is on top of the $60 million Bally’s already paid the Trump Organization to acquire the remainder of its lease for the city-owned golf course.
The agreement with Bally’s was referenced in the New York attorney general’s civil fraud case against Mr. Trump and his family business, but has received little publicity.
Bally’s and the Trump Organization made the agreement before Mr. Trump’s second term, but the payout would come while he is president, and as he considers countless issues affecting the finances and governance of New York State and New York City. The state is coordinating the casino site selection competition with input from local officials, including Mayor Eric Adams.
The Mayor has repeatedly stated that he would love to see a casino in New York City but has refused to endorse any particular bidder. Even so, he may have a vested interest in helping Mr. Trump, whose Justice Department is seeking dismissal of the mayor’s federal corruption case.
The mayor’s press secretary, Kayla Mamelak Altus, falsely accused The New York Times of implying that Mr. Adams was pushing for a specific casino and having done so before.
“This marks the second casino bid The New York Times has incorrectly implied the mayor is putting his weight behind, so perhaps the paper should make up its mind before falsely implying there’s a third,” she said in a statement.
Bally’s is one of at least 11 contenders that have expressed interest in bidding for one of the three downstate gambling licenses. Some of the other bidders are connected to Mr. Trump. Las Vegas Sands is the company that controls Miriam Adelson’s family, who is one of Mr. Trump’s biggest supporters. They are bidding to build casino on Long Island. The casino bids are due in June, with the state saying it will make a decision by the end of the year.
In an interview, Soo Kim, the chairman of Bally’s, described the agreement with the Trump Organization as a “a deferred purchase price mechanism,” and said it was an agreement that he did not come to lightly.
“When they first proposed it, I was like, ‘What the hell?'” said Mr. Kim on Tuesday. “They’re getting a lot money for a course.” But they know what it’s worth to me, us and the Bronx.” But they know what it’s worth to me and to us and to the Bronx.”
The Trump Organization, Mr. Kim said, agreed to transfer the lease on the condition that it would get more money if the land was approved for a casino.
A spokeswoman for the Trump Organization did not immediately respond to a request for comment.
Assemblyman Michael Benedetto, a Democrat whose Bronx district includes the golf course, dismissed the prospect of a $115 million Trump payout as merely “a contractual agreement made by two businesses” and said it would not influence whatever decision he ultimately makes about supporting the casino bid.
“People were just happy to get rid of the name ‘Trump’ from the golf course,” he said. “It was an embarrassment to the community.”
This week, Mr. Benedetto and State Senator Nathalia Fernandez said they had introduced legislation that would enable Bally’s to operate a casino on the golf course, should it win a license. Any such legislation is expected to require a home rule message, a message of support from the New York City Council.
Lincoln Restler, the Brooklyn councilman who chairs the committee that would have to advance that home rule message, said that elected officials were likely to look askance at any deal that would enrich the president’s company.
“I think that a $115 million check to the Trump Organization will be a difficult pill for many New York legislators to swallow,” Mr. Restler said.
The $115 million payout was mentioned in a scathing ruling that a New York State judge issued in the civil fraud case against Mr. Trump and the Trump Organization. The judge in that case, Letitia James (the state’s attorney-general), imposed a $450 million judgment on Mr. Trump. He concluded that he had fraudulently increased his net worth to convince banks to give him favorable loans. Trump is appealing Justice Engoron’s ruling.
