The long race for a New York casino licence ended with little drama as the final three candidates were all approved by the state’s Gaming Control Board.
It brings the process closer to a conclusion, having initially begun in 2012. The three projects are expected to contribute $1bn annually in gaming tax by 2036, and a total of $7bn in incremental tax revenue from 2027 to 2036, as well as $1.5bn in licensing fees.
“After a comprehensive review, the Board determined that awarding three licenses would best serve the State’s long-term economic, fiscal, and community objectives,” said the New York State Gaming Facility Location Board selection document.
“The large local population base residing within a two-hour drive of the proposed casino sites is expected to anchor long-term visitation, supplemented by domestic and international tourism.”
Meet the new neighbours
Two of the new casinos are located in Queens, while the third will be placed in the Bronx.
The first to open will be Resorts World New York, a $5.5bn expansion by Genting Group of Resorts World’s current video lottery gaming facility at the Aqueduct Racetrack, which will feature 6,000 slot machines and 800 table games.
Genting has proposed a 56% tax on slot machines and 30% tax on table games – significantly higher than the remaining two projects and over double the minimum rates set out by the state.
The gaming board noted that Genting has indicated an intention to seek to lower this tax rate and urged the gaming commission to resist such “back-tracking”.
The facility is expected to open in March 2026, with the complete expansion set to be finished in 2029 and full project completion in 2031.
Perhaps the most ambitious proposal is Metropolitan Park, led by Steve Cohen, the owner of the New York Mets.
In conjunction with Hard Rock Entertainment, Cohen is planning to embark on an $8bn project to construct a casino next to the Mets’ Citi Field home in Queens, complete with a hotel, live events venue and food hall.
Expected to open in June 2030, the project was almost scuppered by a late rally from the US Tennis Association over parking arrangements related to the body’s organisation of the US Open tennis tournament.
However, Hard Rock and Cohen were able to reach an agreement with the city, which includes a superiority clause and complies with the US Tennis Association’s lawsuit with the city, whose lease bans or restricts other events in the area during the US Open.
Finally, Bally’s Bronx seeks to build a gaming facility on the Bally’s Links golf course, formerly known as Trump Links before Bally’s purchased the course from the Trump Organisation for $60m in 2023.
Bally’s Corporation has committed $4bn to construct a casino which would include 3,500 slot machines and 250 table games, as well as house over 3,500 employees. The project is expected to open in mid-2030.
Notably, the Trump Organisation will receive a $115m windfall once Bally’s is granted a casino licence.
Big name omissions
The Gaming Facility Location Board initially received eight applications for the three licences. However, only four remained after they had been reviewed by their respective Community Advisory Committees (CACs).
One of the projects not to make it for further consideration was Caesar’s Palace’s proposed Times Square casino backed by the hip hop star Jay-Z.
The $5.4bn project to redevelop a Broadway office tower fell by the wayside after a public hearing, which heard opinion from various stakeholders, including Broadway, which argued the casino would hurt the theatre industry.
The committee’s rejection hit the headlines as Marc Holliday, the CEO of developer SL Green, labelled the decision a “despicable display of cowardice”.
MGM Resorts did make it through the CAC process. However, abruptly pulled out of the casino race the day before the deadline for submitting final bids.
The company stated that it no longer made economic sense to pursue the expansion of its existing MGM Empire City venue into a fully-fledged casino resort due to a shift in the “competitive and economic assumptions” underpinning its application.
Genting acquisition not quite there
Amidst the licensing process, Genting has been in the process of a potential major shift, as Genting Bhd has sought to acquire Genting Malaysia.
Central to the deal was the streamlining of the process and funds to boost the firm’s New York expansion.
Whilst Genting’s Resorts World footprint, which is the largest slots-only venue in the state, was successful in securing board approval for a New York license, the acquisition of Genting Malaysia by Genting Bhd is yet to be secured.
Currently, Genting Bhd holds 73.13% of its subsidiary, just shy of the 75% needed in order to secure the delisting of the firm.
There had been optimism that the deal would be concluded to align with the New York licensing process, however, that appears somewhat unlikely now. There was a setback following the advice issued by Kenanga Investment Bank – the independent adviser appointed to assess the offer.
Kenanga Investment Bank urged minority shareholders to reject the offer, stating that the MYR 2.35 per share proposal is “not fair” and “not reasonable”. The bank argued that shareholders would be better served by exploring the open market.
According to the adviser, Genting Malaysia’s fair value lies between MYR 3.48 and MYR 3.77 per share — meaning the MYR 2.35 offer undervalues the company by between 32.47% and 37.67%.
What’s next?
The recommendations from the Gaming Facility Location Board will now advance to the New York State Gaming Commission, which is expected to issue final licenses of up to 30 years by December 31.
Alongside a $500m licensing fee, each applicant will pay a minimum of 25% tax on slots and 10% on table games.
“The Commission has already begun the licensing review process and intends to move promptly to issue licenses so that construction can begin, jobs can be created, and revenues can be collected. The Board congratulates the successful Applicants and wishes them the best success in the Commission’s licensing process and on their proposed gaming facility developments,” concluded the selection document.
