Resorts World New York asks regulators to revisit terms as casino licensing race narrows

Resorts World New York is preparing to ask state regulators to modify the tax commitments it recently put forward as part of its bid for one of three downstate casino licenses, according to a Bloomberg report citing unnamed sources familiar with the discussions.

The request is a shift from the company’s earlier offer to pay more than the minimum required by New York State. Operated by Genting, the Queens-based slots facility had proposed a $600 million licensing fee, exceeding the state’s $500 million threshold, along with tax rates of 56% on slot revenue and 30% on table games. Analysts described those terms as unusually high by industry standards.

The company is now expected to urge regulators either to reduce the tax burden it originally volunteered or to place higher rates on any other applicants selected for a license.

MGM Resorts International surprised industry observers last month by withdrawing from the downstate race. Its Empire City Casino in Yonkers had been viewed as a likely winner, and its exit leaves just three contenders for the same number of licenses: Resorts World New York, Bally’s proposal in the Bronx, and the $8 billion Metropolitan Park project in Queens.

In comparison to Resorts World's 56%, Metropolitan Park is offering a 25% tax on slot machines, while Bally's has proposed a 30% levy. Casino tax rates vary from 6.75% in Nevada to as much as 55% in Pennsylvania, which would make Resorts World the most highly taxed commercial casino in the country.

Genting has previously emphasized its willingness to commit more capital and create more jobs than its rivals. The company projects that converting Resorts World New York into a full-scale casino could generate gross gaming revenue approaching $4 billion a year.

It also estimates that the property would deliver $18.8 billion in tax payments over its first decade of operation, a figure that would outpace expectations for the other two contenders.

Beyond taxes, Resorts World has pledged major financial outlays tied to its proposal. The operator has committed $5.5 billion to redevelop and convert the current venue, a sum that excludes an additional $2 billion earmarked for community benefits.

A separate forecast released earlier this month suggested the Queens casino could send $2.5 billion to the Metropolitan Transportation Authority over four years, exceeding the $1.8 billion the MTA had anticipated receiving from all downstate casino projects combined.

The New York Gaming Facility Location Board is reviewing all three proposals and is expected to announce its decisions as early as December 1. While three licenses are available, the board is not required to award all of them.