Published on: October 15, 2025, 08:24h.
Updated on: October 15, 2025, 08:24h.
- MGM’s Exit Sparks Concerns Over Returns at Resorts World New York
- Genting Confronts Lackluster Performance at Other North American Casino Ventures
- Proposal by Genting Features Some of the Highest Tax Rates in the Industry
MGM Resorts International (NYSE: MGM) made waves in the gaming industry by announcing its exit from the New York City casino competition, raising questions about the financial future of Resorts World New York located in Queens.
Much like MGM’s Empire City Casino in Yonkers, the Genting-managed slots-only venue is considered a strong candidate for one of the three downstate casino licenses. However, analysts speculate that MGM’s exit may signal potential shortcomings in the value of New York City-area casino licenses. This presents a challenge for Genting, which already manages several underperforming properties across North America.
“With several of Genting Malaysia’s Resorts World properties, including Resorts World Catskills, Resorts World Bahamas, and Resorts World Las Vegas, struggling with lackluster returns, one must question the financial viability of a multi-billion dollar expansion for Resorts World NYC,” remarks Nomura analyst Tushar Mohata.
Genting has stated that upon receiving one of the three downstate licenses, it intends to invest $5.5 billion to transform its Queens facility into a Las Vegas-style casino, excluding an additional $2 billion for community amenities. This investment significantly surpasses what was spent to establish Resorts World Las Vegas.
Genting Committing to ‘Aggressive’ Proposals
MGM cited unfavorable economic conditions and a reduced licensing period cut from 30 years to 15 years as key factors in its decision to exit the New York competition.
The licensing term initially anticipated that winning bidders would pay $500 million for the permits. In this context, Nomura characterizes Genting’s proposal as aggressive, as it exceeds expectations by proposing a license fee of $600 million and some of the highest tax rates found within the U.S. casino market.
Genting’s revised bid “features bold terms, including a US$600 million license fee (higher than the minimum $500 million requirement) along with leading tax rates of 56% on slots and 30% on tables, significantly outpacing rates proposed by other contenders,” adds Mohata from Nomura.
Essentially, Genting is voluntarily offering increased licensing fees and elevated tax rates, even in the absence of pressure from New York regulators, as MGM reconsiders the financial soundness of such commitments amid an intensely competitive market.
Geographical Factors Also Play a Role for Genting
MGM also highlighted geographical considerations in the New York casino landscape, which are particularly relevant for Genting. The proposed $8 billion Metropolitan Park project, backed by New York Mets owner Steve Cohen and Hard Rock International, would be situated a mere 10 miles from Resorts World New York.
Metropolitan Park stands as one of the three remaining proposals and is viewed as a strong favorite for obtaining a license. Mohata warned that this venue, if realized, could potentially siphon business away from Resorts World New York.
“The total return on invested capital impact will likely remain uncertain for several years due to the staged nature of the capital investment,” the analyst concludes. “Genting Malaysia’s phased development strategy may enhance its capital management and help mitigate associated risks.”