It was a long, drawn-out, competitive, contentious, and at times ugly process, but it is over. The Big Apple is to have a casino, three in fact.
On Monday, December 15, the New York State Gaming Commission made its final determination for casino-resort licenses for New York City. The Commission awarded the three licenses available to the three bidders left in the race. Hard Rock and Mets owner Steve Cohen received approval for Metropolitan Park, a resort near the Mets ballpark. Bally’s Corporation was awarded a license to pursue a project in the Bronx called, creatively, Bally’s Bronx. And Resorts World was granted a license to add other gaming options to its racino and complete the build-out of Resorts World New York City.
Resorts World can now add table games and upgrade its casino in Queens. Of the three licensees, Resorts promises the quickest return. The existing Resorts World operates a racino at Aqueduct Racetrack. The company intends to update and expand its casino floor and open by March 2026. The property has 4,476 video lottery terminals that generate $400 a day each in revenue.
Resorts World expects to increase its gross revenue significantly, with the addition of table games, poker, and sports betting. The forecasts differ, but Resorts World is expected to have circa 6,000 slots and 800 table games when completed. The Resorts World bid calls for the corporation to invest $5.5 billion to build a full resort, adding 2,000 rooms, an entertainment center, a variety of food outlets, and other amenities. The completed resort is projected to open in 2030-31.
It is unclear at this time what the final tax rate is going to be; Resorts World offered 50 percent of revenue during the bid process, but later documents changed the number. The minimum required by the state is 25 percent for slot machines and 10 percent for table games. At the current slot machine win rate, a 25 percent tax rate would generate $216 million a year in taxes; with table, poker, and sports it might reach $300 million. However, a word of caution. Genting, the parent company, is traditionally an underperformer. A $500 million license fee is due and the license is valid for 15 years.
Bally’s could probably be the next to open. The Bally’s casino plan is modest compared to Resorts World’s. Its casino is to have 3,500 slots, 210 table games, 40 poker tables. The completed Bally’s Bronx will have a 500-room hotel, an events center, nightclub, multiple food and beverage outlets, and retail. The bid proposed a $4.0 billion investment and substantial community-benefit funds. Bally’s Chair Soo Kim told News 12 that he plans to get shovels in the ground right away, with an estimated completion date ahead of mid-2030. The $500 million fee is due and like Resorts, the license is valid for 15 years.
The final winning bidder is a joint venture between the owner of the New York Mets baseball team and Hard Rock. The project is called Metropolitan Park. Cohen will contribute the noise and public face, some of the financing, and maybe part of the design. Hard Rock will fill in the missing pieces and operate the casino, which will have 5,000 slots, 375 table games, and sports betting. The project is estimated at $8.1 billion and will include a casino, a 1,000-room hotel, convention center, and concert venue and connect with a future sports stadium. The partners are predicting $3.9 billion a year in gross gaming revenue and $850 million in taxes by the third year of operation. The target date for opening is 2030 and construction is to start in January. The $500 million license fee is due and the license is valid for 20 years. The state gracefully recognized it would take longer to pay off $8.1 billion than $4.0 billion.
The state is really the winner. New York does not have to wait for slot machines, table games, or hotel rooms for a payday. The fees are $1.5 billion and due immediately. Following the payments, construction will begin. The three projects are expected to generate thousands of construction jobs over the next four or five years. When finished, there will be the taxes. Using the Metropolitan Park estimate and assuming the other properties produce half the revenue and taxes, the state would receive $1.5 billion a year in gaming taxes. That is equivalent to what New York receives now from online sports betting.
While the construction continues, the state will be watching. A third-party monitor will report back to the Gaming Commission once a quarter. The chairman of the Commission, Brian O’Dwyer, said the Commission would give serious consideration to revoking a license if the operator was not keeping its promises or deviating from the standards required by the state.
So there are the winners: New York, Resorts World, Steve Cohen, Hard Rock, and Bally’s Corporation. It will take years to see if the optimism and investment were justified. The world is an uncertain place, the economy unstable, and New York State Senator Joseph Addabbo is bent on legalizing igaming. Igaming would be certain to generate $1.5 billion a year in taxes. If the economy turns sour, New York does not love casinos as much as the developers believe or if Addabbo gets his way, then Wynn and Las Vegas Sands were the real winners.
