Resorts World NYC will enjoy multiple years as the sole full-scale New York City casino after launching its first phase on Tuesday.
Approximately five months after New York regulators awarded three hard-fought downstate casino licences, Resorts World NYC became the first winner to start operating as a full-scale casino when it unveiled the first phase of its $5.5 billion renovation and expansion on Tuesday.
The racino-turned-casino debuted 240 table games, a historic first for the downstate New York region, in addition to about 2,500 slots. Previously, New York City residents would have to travel upstate, or out of state to New Jersey or Connecticut to play at a Class III casino, but now they have access to one right in Queens.
“Live table gaming is officially open in New York City for the first time ever and on day one we are contributing to the state’s economy, supporting jobs and giving back to New Yorkers,” Robert DeSalvio, president of Genting Americas East, said in a statement. “With our planned $5.5 billion expansion, this is only the beginning of something much bigger for Resorts World and for New York.”
Resorts World will have a significant first-mover advantage in the downstate region. The other two licence winners, Bally’s Bronx and Metropolitan Park, are both greenfield developments slated for 2030 openings. Resorts World’s utilisation of existing, unused space allowed the first phase to launch ahead of schedule – the original plan was to open in June.
The buildout will continue in phases until 2031, and its final goal of 800 tables and 6,000 slots would be the highest such totals in the US if realised. In its licence recommendation from December, New York’s Gaming Facility Location Board (GFLB) said Resorts World’s submission only accounted for approximately 4,600 slots and 530 tables.
Resorts World the most ambitious NYC bidder
While the downstate casino process was a roller-coaster ride for most applicants, Resorts World was perhaps the biggest favourite. Its extensive taxes paid as an existing VLT facility and its aggressiveness in bidding up the competition made it almost impossible for the project to be passed up for licensure.
Yet its enthusiasm was perhaps overdone given how the process unfolded, where only three applicants remained for three available licences. The GFLB said that of the three finalists, only Resorts World’s projections “significantly exceeded” those given by the state’s consultants. Resorts World progressively upped its proposal in several ways, including:
- Offering a $600 million licence fee, $100 million more than the state’s bar of $500 million
- Proposing tax rates of 56% for slots and 30% for tables, compared to 25% and 10% for the other winners
- Projecting $2.5 billion in tax revenue to the MTA over the next four years, more than the $1.8 billion budgeted by the agency
- Increasing its workforce and community commitments to $2 billion, bringing the project total to $7.5 billion
The most comparable bid to Resorts World was MGM Empire City in Yonkers, another existing VLT facility that was considered a strong candidate. However, in contrast to Resorts World, MGM was largely cautious in its $2.3 billion bid, the lowest in the field. Empire City easily secured its approvals but MGM ultimately withdrew from consideration, citing concerns about competition and licence length, allowing Resorts World to race ahead.
A big opportunity at the right time
The first-phase opening of Resorts World NYC is a crucial step for parent company Genting as it looks to begin capitilising on perhaps the biggest casino expansion opportunity in decades.
A mature New York City market will generate between $4.7 billion and $5.6 billion in annual gross gaming revenue post-2031, CBRE estimated in a March report. That would make it the second-best performing casino market in the US, behind only Las Vegas. The GFLB estimated last year that the casinos’ tax receipts could top $7 billion from gaming and $5.9 billion from non-gaming in the 10-year period ending in 2036.
The potential four-year head start in NYC could help augment Genting’s turnaround efforts in both Las Vegas and Singapore. Resorts World Las Vegas is recovering from a $10.5 million anti-money laundering fine last year, the second-largest regulatory penalty ever assessed in Nevada. The ailing Strip casino, the most expensive ever built in the market, has since implemented a property-level board of directors to help with compliance and performance.
In Singapore, Resorts World Sentosa was granted a conditional two-year licence renewal in 2024, with regulators citing underperformance in withholding the typical three-year renewal. In response, Genting has accelerated a $5.3 billion expansion of the property, and the company told investors this month that it is “well-positioned for the next assessment cycle”.
