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. Suddenly, a visible artifact of President Trump’s despised presence in New York was gone, and Bally’s — one of several bidders hoping to win one of three coveted casino licenses up for grabs in the state — took credit.
The ceremony in 2024 created the impression of an irrevocable separation between the Bally’s bid and 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 running the casino siting competition, with input from local elected officials, including Mayor Eric Adams.
The mayor frequently says he would like a casino in New York City, but has declined to endorse a 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. A spokeswoman for the mayor had no immediate comment.
Bally’s is one of at least 11 contenders that have expressed interest in bidding for one of the three downstate gambling licenses. Several of the other bidders have ties to Mr. Trump.
Steven Cohen, the Mets owner who wants to build a casino next to the team’s stadium in Queens, donated $1 million to Mr. Trump’s first inaugural committee. The family of Miriam Adelson, one of Mr. Trump’s biggest supporters, controls Las Vegas Sands, which is bidding to build a casino on Long Island.
But none of the other bids, if successful, would seem to directly benefit Mr. Trump. 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 already getting a lot of money for a golf course. What do they think it’s worth? 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. In that case, which was brought by Letitia James, the state’s attorney general, the judge imposed a more than $450 million judgment against Mr. Trump, concluding he had fraudulently inflated his net worth to dupe banks into giving him favorable loans.
The judge, Arthur F. Engoron, referred to the golf course deal as giving the Trump Organization a “windfall profit.”
Mr. Trump is appealing Justice Engoron’s ruling.
Ben Protess and Jonah E. Bromwich contributed reporting.