Resorts World NYC is making significant strides in its expansion efforts following the award of a commercial casino license in downstate New York. This week, the casino announced the addition of 1,400 slot machines, raising its total to approximately 3,900. These new slots were installed on the existing first floor of the facility, a quick turnaround that played a role in obtaining approval from state regulators. Since transitioning from a video lottery terminal (VLT) operation to a full commercial casino in April, Resorts World has outpaced its competitors, Bally's Bronx and Metropolitan Park, both of which are set to open no earlier than 2030 without the same level of immediate expansion.
On Wednesday, the casino celebrated the groundbreaking of the second phase of its $5.5 billion revitalization project, 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 linked to NBA legend Kenny "The Jet" Smith.
– A new parking garage.
– A central plaza.
Ultimately, the expansion aims to feature 6,000 slots, 800 table games, and 2,000 hotel rooms. However, last year, a state licensing board noted that the initial application only included plans for 4,600 slots and 530 table games, with full completion expected by 2031 and a target date for certain expansions set for 2029.
"In less than three months after opening as New York City's first casino, we are already moving towards establishing a first-of-its-kind integrated resort in the city," remarked Lim Kok Thay, chairman of Resorts World’s parent company, Genting.
Recently resolved, a tax dispute with the New York State Gaming Commission (NYSGC) has given Resorts World some breathing room. As the first to offer both table games and Class III slots in the NYC area, Resorts World holds a temporary monopoly, with licensing agreements lasting at least four years. However, this came with a high tax burden, paying 56% on slots and 30% on tables, compared to Bally's Bronx at 30%/10% and Metropolitan Park at 25%/10%.
Earlier this summer, Resorts World faced a significant tax challenge where it believed its contributions to the state’s horse racing industry were included in its overall taxes. The NYSGC maintained these were separate obligations. Until 2030, Resorts World had been responsible for approximately $150 million annually for these racing payments. This was ultimately resolved in their favor on June 5, when a bill allowed the NYSGC to distribute tax revenues directly to the New York Horse Racing Association.
New York Governor Kathy Hochul noted the ongoing dispute and explained that the bill aimed to protect the horse racing sector from adverse 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 Stefan Friedman, a spokesperson for Resorts World.
With the tax issue put to rest, Resorts World has been able to focus on its performance since its commercial relaunch. Over the past 11 weeks, the casino reported $317 million in total gross gaming revenue, on track for over $1.5 billion in a year. Average daily slot win per unit stands at $1,214, significantly surpassing the Wynn Las Vegas average of $849 during the most recent quarter, despite Resorts World now operating 3,900 machines compared to Wynn's 1,800.
Robert DeSalvio, president of Genting's New York operations, highlighted the exceptional slot win figures, stating, "I don’t think the industry’s ever seen that number before." He noted that monthly slot revenues are already exceeding the casino's previous highest VLT revenues with far fewer machines.
Regarding the table games tax rate, DeSalvio acknowledged it was high but expressed optimism that it would align with rates from the other casinos once they begin operations. However, the NYSGC site does not clarify whether the current tax rates are temporary or dependent on other operators entering the market. The Gaming Facility Location Board recommended that applicants be assessed based on their proposed tax rates, a point noted on the commission's website.
