Resorts World NYC is making significant strides in its expansion just a year after obtaining a coveted commercial casino license in downstate New York. This week, the casino announced the addition of 1,400 slots, raising its total to approximately 3,900 machines. This increase comes as part of a rapid growth strategy that was a key factor in securing its license. Initially a video lottery terminal (VLT) facility, Resorts World transitioned to a full-fledged casino in April, marking a notable evolution while its competitors, Bally's Bronx and Metropolitan Park, plan to open in 2030 as single-phase developments.
In a further demonstration of its commitment to growth, Resorts World held a groundbreaking ceremony on Wednesday for the second phase of its ambitious $5.5 billion overhaul. This expansion will feature:
– A new 400-room Hyatt hotel tower alongside a 1,200-room Crockfords hotel
– A 7,000-seat entertainment venue
– A sports and media complex named after NBA legend Kenny "The Jet" Smith
– A new parking garage
– A central plaza
When the expansion is completed, the casino anticipates a total facility size that will encompass 6,000 slots, 800 table games, and 2,000 hotel rooms. However, it's important to note that prior projections submitted to the state licensing board included designs for just 4,600 slots and 530 tables. The full completion of the project is expected by 2031, with the expanded gaming elements targeted for 2029.
Lim Kok Thay, chairman of Resorts World's parent company Genting, expressed excitement about the rapid progress, stating, "In less than three 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."
On the tax front, Resorts World operates under the highest tax rates among the downstate casinos—56% on slots and 30% on table games. In contrast, Bally's Bronx pays 30%/10%, and Metropolitan Park 25%/10%. Following the acquisition of its casino license, Resorts World faced a significant tax dispute with the New York State Gaming Commission (NYSGC), largely due to misunderstandings regarding payments related to supporting the state's horse racing industry. The commission determined these were separate costs rather than included in overall gaming taxes. Until 2030, Resorts World was required to cover these costs alone, amounting to over $150 million annually. Fortunately, a resolution occurred when a legislative bill passed on June 5, allowing the NYSGC to distribute tax funds directly to the New York Horse Racing Association.
New York Governor Kathy Hochul recognized the dispute, stating the bill aims to protect the racing industry, which relies on similar funding.
After the resolution, Resorts World is now able to focus on its gaming operations, boasting impressive early financial results since its relaunch. Over the last 11 weeks, the casino has tallied total gross gaming revenue of $317 million, which projects to over $1.5 billion in a year. The average revenue per slot machine per day has reached $1,214, surpassing even the renowned Wynn Las Vegas, which reported $849 per day for its machines with a total of 1,800 machines compared to Resorts World's expanded count of 3,900.
Robert DeSalvio, president of Genting's New York operations, commented on the unprecedented slot win numbers, stating, "I don’t think the industry’s ever seen that [slot win] number before." He added that monthly slot revenues have already breached those previously set by the casino as a VLT operation.
Though expressing that the 30% table tax is notably high, DeSalvio believes it will be adjusted downward to align with the competition once the other casinos commence operations. However, clarity on whether this rate is temporary hangs in the balance, as the NYSGC site does not explicitly categorize the higher rates as transitional. The Gaming Facility Location Board and the Gaming Commission had previously indicated that prospective casino applicants would be evaluated and licensed based on the tax rates they offered.
Jess Marquez, covering the global gaming industry, highlighted his experience since 2022 and emphasizes the correct pronunciation of his hometown, Reno, Nevada.
