Less than a year after obtaining a highly sought-after commercial casino license for downstate New York, Resorts World NYC is rapidly advancing its expansion plans. This week, the casino added 1,400 slots to its gaming floor, increasing the total to approximately 3,900 machines. The new slots were integrated into the existing space on the first floor of the casino, a key factor that helped persuade state regulators during the licensing process. In April, Resorts World transitioned from a Video Lottery Terminal (VLT) facility to a full commercial casino, while its two competitors, Bally’s Bronx and Metropolitan Park, are slated for single-phase openings not expected until 2030 at the earliest.
On Wednesday, Resorts World held a groundbreaking ceremony for the second phase of its ambitious $5.5 billion redevelopment project. This next phase 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 central plaza
Once completed, the expanded casino is projected to house 6,000 slots, 800 table games, and 2,000 hotel rooms. However, the state licensing board noted that the initial application only included plans for 4,600 slots and 530 tables. The target dates for the targeted expansions are set for 2029, while full project completion is expected by 2031.
"In less than three months since we opened as the first casino in New York City's history, we are on our way to creating a first-of-its-kind integrated resort," said Lim Kok Thay, chairman of Resorts World’s parent company, Genting.
The establishment of Resorts World not only marks the introduction of both table games and Class III slots to the NYC region but also brings a significant first-mover advantage, as these monopolies will last for at least four years. However, this advantage comes with a high price tag: Resorts World faces the steepest tax rates of the three downstate casinos, paying 56% on slots and 30% on table games, compared to Bally’s Bronx and Metropolitan Park, which will charge 30%/10% and 25%/10%, respectively.
Earlier this summer, Resorts World was embroiled in a significant tax dispute with the New York State Gaming Commission (NYSGC). A portion of the tax revenue generated by the three casinos is allocated to support the state’s horse racing industry, but the casinos believed these payments were incorporated into their gaming taxes. The NYSGC, however, viewed them as an additional cost.
Post-2030, these payments will be divided among the three casinos, but until then, Resorts World was obligated to cover them alone, amounting to over $150 million per year. Fortunately for Resorts World, this interpretation issue was resolved in its favor on June 5, following the passage of a bill that allows the commission to allocate tax funds from the casinos directly to the New York Horse Racing Association.
New York Governor Kathy Hochul acknowledged the "ongoing dispute" between Resorts World and the NYSGC, adding that the new legislation aims to prevent adverse effects on a racing industry that has historically depended on such funding.
"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.
With the tax dispute behind it, Resorts World can now concentrate on its financial performance as the sole operator in New York City. Since its commercial relaunch, the casino has reported impressive figures over the last 11 weeks, accumulating a total gross gaming revenue of $317 million, positioning it for over $1.5 billion in revenue over the next 12 months.
The average slot win per unit per day at Resorts World stands at $1,214, significantly higher than Wynn Las Vegas, which reported an average daily win per unit of $849 in Q1. Resorts World features 2,500 machines, compared to the 1,800 at Wynn before its expansion to 3,900.
Robert DeSalvio, president of Genting’s New York operations, remarked during this week’s GGB Podcast, "I don’t think the industry’s ever seen that [slot win] number before." He highlighted that the current monthly slot revenues are already exceeding those recorded during the casino’s highest-ever VLT revenue month, despite having fewer machines than before.
Regarding the 30% table game tax rate, DeSalvio acknowledged it is "a little bit high," but expressed confidence that it would likely be adjusted to align with rates at the other two casinos once they open. This, however, may still be contested, as the NYSGC has not classified these higher rates as temporary or contingent on the competition.
According to the NYSGC site, "the Gaming Facility Location Board recommended — and the Gaming Commission concurred — that applicants be considered and licensed based upon the tax rates each proposed."
