The shock announcement by MGM Resorts this week that it was withdrawing from the race to win one of three possible full casino licenses in downstate New York has significantly increased the chances that one of those licenses will be awarded to Genting Malaysia’s Resorts World New York City.
But according to investment bank Nomura, it also raises questions over the economics of Genting’s expansion plans, with the company set to invest US$5.5 billion into expanding its existing property and earlier this week submitting a revised proposal that includes aggressively enhanced license fee and gaming tax payments.
MGM’s withdrawal, citing concerns over the geographic concentration of casino licenses offered in remaining bids and a shorter-than-expected license duration of 15 years versus an anticipated 30 years, leaves just three candidates for the three licenses.
