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Genting Expects $1B Tax Bill If Resorts World NYC Receives Full Casino License

Written By Marc Meltzer | Updated:
Exterior Of Resorts World Catskills

Genting Malaysia Bhd operates Resorts World New York City. The company is one of the casino operators looking to obtain one of the New York City full casino licenses that will be approved later than expected.

If Genting can expand the casino offerings in Queens to include table games like blackjack it would almost double its tax payments to the state. The company estimates its tax payments would increase from just over $600 million to $1 billion or more, according to a recent article from Bloomberg1.

Resorts World currently has three casinos in New York. Only Resorts World Catskills offers live table games. The Hudson County and New York City casinos only offer slots and electronic table games.

The company does offer online sports betting. New York online casinos don’t appear to be in the cards just yet.

Key takeaways:

  • Genting wants a full casino license for Resorts World NYC.
  • Resorts World NYC could expand with the full casino license.
  • New York City casino licenses won’t be issued until at least late 2025.

Resorts World NYC taxes would bump up $400 million with full casino license

Resorts World NYC is open from 9 a.m. to 5 a.m. and only offers guest slot machines and electronic table games at this time. There are no live dealer games at the Queens, NY casino.

The full casino license will allow Resorts World NYC to have live dealer games similar to nearby casino markets in Connecticut and Atlantic City. It would also allow Resorts World to stay open 24 hours a day.

Genting pays New York about 67% of its revenue in taxes. This includes administrative fees and other expenses, according to Bloomberg.

The company expects that live dealer table games will be taxed at a lower rate. Upstate New York casinos pay a 30% tax on slots and 10% on table games.

If Resorts World is allowed to offer live dealer table games and remain open all day it would generate enough revenue that it will pay the state $1 billion in taxes.

Genting is already proposing expanding Resorts World NYC should it receive the highly coveted New York City casino license. In addition to increasing the tax dollars paid to New York, the expanded casino will create 4,000 new jobs.

What does Resorts World NYC plan for its proposed expansion?

Earlier this year, Genting revealed its plans to expand Resorts World NYC. The company expects this development will cost $5 billion.

The heart of the property would be a larger, 350,000-square-foot casino floor. This would be one of the largest in the USA.

Plans call for a new 7,000-seat entertainment venue and new restaurants from celebrity chefs like Marcus Samuelsson and Scott Conant.

These new attractions should bring more people to Resorts World NYC. Genting will also increase the size of the existing hotel, which will grow from 400 to 1,600 rooms.

This will all lead to new jobs for the local community and more tax revenue for the state.

Major competition for New York City casino licenses

Resorts World is one of the favorites to land one of three New York City casino licenses. Several competitors are looking to obtain one of these licenses.

One of the licenses could be for a casino in the same New York City borough. Despite opposition, New York Mets owner Steve Cohen would like to build a casino adjacent to Citi Field in Queens, NY.

MGM Resorts (NYSE: MGM) is also a favorite to receive a license to turn Empire City Casino in Yonkers into a full-service casino. The casino operators’ plans sound similar2 to what Genting has for Resorts World.

Among the other operators looking to obtain an NYC casino license are Sands, Wynn Resorts, and Caesars, who have plans for a New York City casino. However, one might be looking elsewhere already.

Delays for doling out a license could reduce the number of interested parties. During Las Vegas Sands’ most recent earnings call3, President and Chief Operating Officer Patrick Dumont shared his frustration with New York:

“(W)e’re very disappointed by New York. I mean, we’ve been working there for a long time and we thought it was going to happen in ’24. That was the state. Now they’re saying ’25 or ’26, but I don’t think we have any real clarity. And to be honest with you, it’s confusing and disappointing because we’ve done a lot of work in New York and a lot of time into it.

So I have no guidance because I don’t really know what to tell you with candor and insight. Just don’t know about New York. And it’s just wish — we wish they figured it out and let us know. We just don’t know. So we’ll remain hopeful that things turn around there.”

During the call, Robert Goldstein, chairman and chief executive officer, confirmed interest in possibly expanding to Thailand. This could be in addition or instead of New York, depending on how long the licensing process takes.

Sources

  1. Genting Says NYC Casino License to Bring $1 Billion in Taxes ↩︎
  2. MGM RESORTS UNVEILS VISION FOR MGM EMPIRE CITY ↩︎
  3. Las Vegas Sands Corp. (LVS) Q1 2024 Earnings Call Transcript ↩︎
Photo by AP Photo/Seth Wenig
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Marc Meltzer

Marc grew up on the mean streets of the South Bronx. He's the rare combination of Yankees and Jets fan which explains his often contrarian point of view. Marc is a freelance writer and social media consultant. Writing about steak, booze, gambling and Las Vegas is a tough job but somebody has to do it.

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