Resorts World New York is set to request state regulators for adjustments to its previously stated tax obligations as part of its proposal for one of three downstate casino licenses. This information comes from an unidentified Bloomberg source close to the negotiations.
This appeal marks a departure from the facility’s earlier commitment to exceed New York State’s minimum tax requirements. Managed by Genting, the slots facility in Queens had initially made a $600 million licensing fee proposal, surpassing the state’s $500 million standard, and suggested tax rates of 56% on slot earnings and 30% on table games, which analysts deemed exceptionally high within the sector.
The company is now anticipated to advocate for a reduction in the tax commitments it had earlier proposed or to impose increased rates on other applicants who may receive a license.
MGM Resorts International took the industry by surprise last month by exiting the downstate competition. Its Empire City Casino in Yonkers was considered a strong contender, and its departure leaves Resorts World New York, Bally’s Bronx proposal, and the $8 billion Metropolitan Park project in Queens as the only remaining candidates vying for the three available licenses.
In contrast to Resorts World’s 56%, Metropolitan Park is offering a 25% tax rate on slot operations, and Bally’s has put forth a 30% tax rate. Casino tax percentages fluctuate from as low as 6.75% in Nevada to as high as 55% in Pennsylvania, positioning Resorts World as the most heavily taxed commercial casino nationwide.
Genting has consistently highlighted its commitment to invest more capital and generate jobs at a greater scale than its competitors. The company projects that transitioning Resorts World New York into a comprehensive casino could yield gross gaming revenues nearing $4 billion annually.
Moreover, it estimates that the site would contribute $18.8 billion in tax revenue over its initial decade of operations, surpassing expectations for the other two competing projects.
Apart from taxes, Resorts World has committed substantial financial resources linked to its proposal. The operator plans to invest $5.5 billion in redeveloping and transforming the existing venue, in addition to an extra $2 billion designated for community enhancements.
A recent forecast indicated that the Queens casino could deliver $2.5 billion to the Metropolitan Transportation Authority over a four-year span, surpassing the MTA’s expectation of $1.8 billion from all downstate casino initiatives combined.
The New York Gaming Facility Location Board is evaluating the three proposals and is expected to reveal its decisions as early as December 1. Although three licenses are up for grabs, the board is not obligated to issue all of them.