Resorts World NYC is rapidly advancing its expansion efforts, just months after obtaining a commercial casino license in downstate New York. On Tuesday, the casino revealed the addition of 1,400 slot machines, raising its total to approximately 3,900. This increase involved utilizing existing space on the property’s first floor, a key factor that facilitated obtaining the license from state regulators. In April, Resorts World transitioned from a video lottery terminal (VLT) facility to a commercial casino. Compared to its two competitors in the region, Bally's Bronx and Metropolitan Park, which are expected to open in 2030, Resorts World is ahead in its expansion initiatives.
On Wednesday, the casino celebrated a groundbreaking ceremony for the second phase of its $5.5 billion expansion. This phase will encompass several significant additions, including:
– 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 honoring NBA legend Kenny "The Jet" Smith
– A new parking garage
– A central plaza
The completed project is projected to feature 6,000 slots, 800 gaming tables, and 2,000 hotel rooms. However, a state licensing board pointed out that the original proposal included plans for only 4,600 slots and 530 tables. The expected completion date for all expansions is set for 2029, while the entire project is slated for completion by 2031.
Lim Kok Thay, chairman of Resorts World’s parent company, Genting, commented, "In less than three months after opening our doors as the first casino in New York City’s history, we are already moving toward a day when the city will have a first-of-its-kind integrated resort."
Additionally, Resorts World has addressed a significant tax dispute with the New York State Gaming Commission (NYSGC). This dispute arose from the interpretation of tax obligations related to the horse racing industry. Resorts World is responsible for the highest tax rates among the downstate casinos—56% on slot revenues and 30% on table games—while its competitors, Bally’s Bronx and Metropolitan Park, are subject to 30% and 25% and 10% respectively.
Despite the costs of these high tax rates, Resorts World faced an issue concerning tax payments meant to support the horse racing sector. The state gaming commission viewed these payments as an additional cost on top of standard gaming taxes, attempting to allocate the burden solely to Resorts World until 2030. A resolution to this issue was reached on June 5 when legislation was passed to allow the commission to allocate resources directly to the New York Horse Racing Association.
New York Governor Kathy Hochul recognized the ongoing tax dispute, assuring that the recent legislation would prevent adverse impacts on the racing industry, which has historically depended on similar 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," said Resorts World spokesperson Stefan Friedman.
Having settled the tax matters, Resorts World can now focus on its impressive performance since reopening. The casino has generated $317 million in gross gaming revenue over the past 11 weeks, potentially leading to over $1.5 billion in revenue over the next year. The average slot win per machine per day stands at $1,214, significantly outperforming Wynn Las Vegas, which reported $849 during the first quarter of the year.
According to Robert DeSalvio, president of Genting's New York operations, this slot win figure is unprecedented. In addition, monthly slot revenues have already exceeded the casino's prior record for VLT revenues, despite the reduced number of machines. DeSalvio acknowledged the table tax rate of 30% is "a little high" but expressed confidence that it would decrease to align with the rates of the other two casinos once they launch. However, there is still ambiguity, as the NYSGC website does not clarify whether Resorts World’s higher tax rates are temporary.
The Gaming Facility Location Board's recommendation and the Gaming Commission's agreement based their licensing decisions on the tax rates proposed by applicants.
