Should Bally’s succeed in obtaining a Bronx casino license, it would result in a $115 million profit for the Trump Organization, which formerly managed the golf course where the gaming company aims to construct a casino hotel. 

In late 2023, the local casino operator reached an agreement with the president's business team — managed by his two oldest sons — to secure the lease for Trump Golf Links at Ferry Point. At that moment, it was thought the acquisition cost was $60 million, but the contract contained a provision that Bally’s would pay an extra $115 million to the Trump Organization if a gaming facility is ultimately constructed on the site.

"Bally’s further agrees that in the event that any Bally’s Entity is awarded, granted, assigned or otherwise receives (including, without limitation, being selected or announced as the successful bidder in a request for offer or request for proposal process or otherwise) a non-appealable Gaming License (a ‘Gaming Event’), then Bally’s shall make a separate non-refundable payment to Trump in the amount of $115 million,” according to a June 2023 letter from Donald Trump Jr. to then Bally’s President George Papanier.

To the joy of certain Bronx-area and New York City politicians, Bally’s fulfilled its commitment to remove the Trump name from the golf course, accomplishing this in January 2024. 

If Bally’s Secures Bronx Casino Bid, It Must Swiftly Compensate Trump

Bally’s, located in Rhode Island, is one of 11 contenders vying for three casino licenses in downstate areas, and if it succeeds in obtaining one, it would be required to pay $115 million to the Trump Organization to avoid significant interest penalties. 

In his letter to Papanier, Trump Jr. indicates that the gaming company has 10 days to make that payment “after the occurrence of an Extension Event or Gaming Event.” Should Bally’s not fulfill that payment, it would incur a 10% yearly interest penalty “calculated on the basis of actual days elapsed, derived from a 360-day year, from the due date until the date of payment.” 

That letter, similar to the golf course, possesses intriguing history. It was submitted as proof in the state's case against President Trump, claiming he deliberately exaggerated the worth of Trump Organization assets to secure more favorable loan conditions from banks. 

Before Trump’s victory in the 2016 presidential election, his company and the city reached a deal to prolong the lease on Ferry Point for 20 years, but following the January 6, 2021 riot at the Capitol in Washington, DC, former New York Mayor Bill de Blasio (D) sought to block the city’s agreement with Trump’s firm. In April 2022, a Supreme Court Judge in Manhattan determined that de Blasio exceeded his authority, permitting the golf course to stay under Trump's management. 

Some Progress for Bronx Casino Initiative 

Though the rivalry for the three downstate licenses is intense and opposition exists regarding a Bronx casino, there are also supportive factors for the initiative. 

Earlier this week, Sen. Nathalia Fernandez and Assemblyman Mike Benedetto — two Democrats representing the region containing the golf course — proposed legislation that may facilitate the removal of the property’s parkland designation. Without that classification changing, Bally's would not be able to seek a gaming license. 

The firm also recently announced its intention to offer up to a 10% equity share in the Bronx casino hotel to residents of the Bronx.