As the battle for the three downstate casino licenses in New York continues, Resorts World New Yorkβs owner, Genting Malaysia, has made a huge promise. According to the casino company, its property in the Empire State could create as much as $1 billion in annual taxes, if allowed to launch Vegas-style casino gaming.
Resorts World New York is currently a slots-only property that already pays hundreds of millions of dollars in taxes. However, Genting is convinced that it could boost its taxes to $1 billion or more if allowed to turn its Queens property into a Las Vegas-style casino hotel.
If granted a license, Resorts World New York would continue paying a 67% levy on its slot machines. However, the levy on traditional table games would be lower, which highlights Gentingβs confidence in the potential performance of the gaming tables vertical.
In addition to its tax promise, Genting previously promised to invest an additional $5 billion in Resorts World New York. This investment will turn the slot gaming venue into a proper Vegas-style casino hotel, allowing it to capitalize on the demand for gambling.
Genting Has Certain Advantages
Because of its existing property, Genting is one of the biggest contenders for a downstate license. Considering that Resorts World New York has been in business for over 12 years, its parent company has a clear advantage over competitors that are yet to set foot in the Empire State.
This is also the case for MGMβs Empire City casino in Yonkers, which has a clear edge because of its established business in the state.
Resorts World New Yorkβs appeal is further bolstered by the fact that the company has so far paid out over $4 billion in taxes, lending further credibility to its $1 billion tax promise. Genting also operates two casinos in upstate New York, highlighting its familiarity with local gamblers.
In any case, the Malaysian casino company is going to have to challenge some of Americaβs most influential gambling giants if it is to secure the coveted license. The likes of Caesars and Hard Rock International are also in the race, meaning that the authoritiesβ choice is not going to be easy.
In the meantime, the process of awarding the licenses continues to drag on and is set to take longer than initially expected. According to the latest estimates, the licenses should be awarded in 2025. Β