Resorts World NYC is rapidly advancing its expansion efforts, less than a year after obtaining a commercial casino license for downstate New York. This week, the casino announced it has added 1,400 slot machines, raising the total to approximately 3,900. The new machines occupy existing space on the first floor, a factor that aided in winning approval from state regulators. Resorts World transitioned from a Video Lottery Terminal (VLT) facility to a commercial casino in April, while its competitors, Bally's Bronx and Metropolitan Park, are slated to open in 2030 at the earliest.
In addition to the slot increase, Resorts World held a groundbreaking ceremony on Wednesday for the second phase of a $5.5 billion expansion, which will include:
– A new 400-room Hyatt hotel tower and a 1,200-room Crockfords hotel
– A 7,000-seat entertainment venue
– A sports and media complex dedicated to NBA legend Kenny "The Jet" Smith
– A new parking garage
– A new "central plaza"
Once completed, the revamped property is projected to offer 6,000 slot machines, 800 gaming tables, and 2,000 hotel rooms. However, a state licensing board mentioned that the initial application only included plans for 4,600 slots and 530 tables. The expected completion for all expansions is set for 2029, while the entire project is anticipated to conclude in 2031.
Lim Kok Thay, chairman of Resorts World’s parent company Genting, remarked, “In less than 3 months after opening our doors as the first casino in New York City’s history, we are already moving towards a day when the city will have a first-of-its-kind integrated resort.”
In relation to tax issues, Resorts World has positioned itself as the first operator to introduce both table games and Class III slots to the NYC market. This first-mover advantage comes with notable tax burdens, as Resorts World is subject to the highest tax rates among the three downstate casinos: 56% on slots and 30% on tables. These rates contrast with Bally’s Bronx and Metropolitan Park, which are at 30% and 10%, and 25% and 10%, respectively.
Earlier this summer, the casino faced a significant tax dispute with the New York State Gaming Commission (NYSGC). Part of the tax revenue from the three casinos was designated to support the state’s horse racing industry. Resorts World believed these payments were included in its overall gaming taxes, while the NYSGC viewed them as an additional obligation.
Until 2030, Resorts World was responsible for contributing over $150 million annually to this fund. The issue was resolved in the casino’s favor on June 5, when a bill passed allowing the NYSGC to distribute casino tax funds directly to the New York Horse Racing Association.
Governor Kathy Hochul commented on the resolution, recognizing the “ongoing dispute” and highlighting that the legislation protects the racing industry from negative impacts due to funding changes. “With this issue resolved, we look forward to working in partnership with the state and continuing our standing as New York’s largest taxpayer,” stated Resorts World spokesman Stefan Friedman.
Now that the tax matter has been addressed, Resorts World can focus on its performance as the sole casino operator in the region. Since its commercial relaunch, the casino has reported gross gaming revenue of $317 million over 11 weeks, projecting to exceed $1.5 billion within a year.
The average slot win per unit per day stands at $1,214, significantly higher than the Wynn Las Vegas, which reported $849 per unit in Q1, despite having around 1,800 machines compared to Resorts World’s previous count of 2,500 and current tally of 3,900.
Robert DeSalvio, president of Genting’s New York operations, noted that such a slot win figure is unprecedented. He mentioned that monthly slot revenues are already exceeding the casino’s highest prior VLT revenues, with fewer machines.
Regarding the high table tax rate, DeSalvio acknowledged it was “a little bit high” but expressed confidence that it would align with the others’ rates once they commence operations, although this could become another point of contention.
The NYSGC does not currently categorize these higher rates as temporary. “The Gaming Facility Location Board recommended — and the Gaming Commission concurred — that applicants be considered and licensed based upon the tax rates each proposed,” according to the NYSGC's website.
