Published on: December 19, 2024, 02:42h.
Last updated on: December 19, 2024, 02:49h.
The New York Gaming Facility Location Board (NYGFLB) has recently provided a comprehensive set of responses to inquiries from groups seeking the three downstate casino licenses that the state is set to award next year. This development may bode well for Genting and MGM Resorts International.
The NYGFLB emphasized in their latest responses that “speed to market is only one of many factors of consideration.” While this suggests that regulators will take other factors into account, it also indicates the state’s desire to see gaming venues operational swiftly after the licenses are granted.
Genting’s Resorts World New York in Queens and MGM’s Empire City Casino in Yonkers are operational as slots-only venues with racetracks. Speculation has suggested that these two venues are likely to secure two of the three downstate permits, leaving the other bidders vying for the remaining license. The advantages, if any, held by Empire City and Resorts World New York have not been confirmed by New York regulators.
Bids must be submitted to the NYGFLB by June 2025, and while the board will make recommendations on potential winners, the final decision on awarding the three licenses rests with the New York State Gaming Commission (NYSGC).
Genting, MGM Meeting NY Casino Requirements
Empire City and Resorts World in Queens are considered video lottery terminal (VLT) venues according to New York standards, making operators subject to the same requirements as other contenders for the downstate permits.
All selected applicants must demonstrate required capital investments of at least $500 million before commencing commercial gaming operations,” as per the NYGFLB.
Both Genting and MGM can easily meet this capital commitment. Genting has pledged $5 billion to transform its Queens property into a Las Vegas-style casino if granted a permit. Similarly, MGM has promised significant improvements at Empire City that are expected to generate thousands of construction jobs and cost well over $500 million.
Despite not offering table games, both properties rank among the top-grossing regional casinos in the country. This suggests that transitioning to traditional casinos could lead to substantial revenue and tax benefits.
Clarity on Taxes and Fees
Gaming taxes vary by state, but the NYGFLB provided insight into what operators can anticipate when the three New York City-area gaming venues open.
“Applicants must expect a 25% tax rate on gross gaming revenue (GGR) from slot machines and a 10% tax rate on gross gaming revenue from table games,” noted the board.
Each bidder must pay a one-time application fee of $1 million. For applicants with multiple parties involved, many of which are beyond Genting and MGM, the board mentioned that these groups can decide which company will cover the $1 million fee.
In addition to the minimum capital commitment of $500 million, the three winning parties will each pay a $500 million licensing fee. There have been speculations that New York regulators might increase this fee.